David Shepardson
(Reuters) – California has rejected AT&T’s (NYSE: AT&T) proposal to stop offering landline phone service and other services as a “carrier of last resort”, a state agency said on Thursday.
Marin County said AT&T’s request in March 2023 would end service to more than 580,000 eligible households in the state.
In rejecting AT&T’s request, the California Public Utilities Commission said the decision does not prevent AT&T from decommissioning facilities or investing in fiber optics or other facilities or technology to improve its network.
“We are fully committed to keeping customers connected while working with state leaders to develop policies and create a thoughtful transition that brings modern communications to all Californians,” said AT&T California President Marc Blakeman.
The company is committed to ensuring customers can retain their existing legacy landline voice services until they have an alternative. “No customer will lose voice or 911 service,” Blackman said.
The CPUC said AT&T plays a critical role in providing reliable phone service to communities across the state and said it did not meet the opt-out requirements.
“We will protect customers’ access to basic telephone service – no matter where they live, what their income is, or whether they have access to other forms of communications. Our rules are designed to provide that assurance, but AT&T’s application does not follow our rules,” Commissioner John Reynolds said.
The CPUC launched a new rulemaking proceeding Thursday to adapt its regulations to changing market conditions and technological advances.
AT&T said it needs to go through the FCC’s rigorous review process to ensure Californians continue to receive reliable voice service.
It also cited proposed legislation to ensure rural customers are not affected. “We are fully committed to keeping customers connected while working with state leaders to develop policies and create a thoughtful transition that brings modern communications to all Californians,” AT&T said.
