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AT&T pushes for PSTN withdrawal in California

As operators in other jurisdictions gear up for the migration away from legacy networks, regulators are seeking to ensure adequate protections for consumers

AT&T seeks relief from landline and universal service obligations

On 6 February 2024, the California Public Utilities Commission began a series of public hearings to discuss AT&T’s application to be relieved of its Carrier of Last Resort (COLR) obligations in some parts of the state. As the largest designated COLR in California, AT&T is currently required to provide a PSTN-based landline telephony service to any customer in its geographic coverage that requests it. In March 2023, the operator also filed for the removal of its designation as an Eligible Telecommunications Carrier (ETC) capable of supporting the LifeLine Programme, which subsidises telecoms services for vulnerable consumers through the Universal Service Fund. While AT&T’s request to withdraw as the COLR for much of California could leave millions of consumers without access to copper-based landline services, approval to withdraw from the LifeLine Programme hinges on the operator demonstrating that another ETC-designated operator in the region would be able to take its place.

Championing digital migration amid historic federal broadband investment

In its application for withdrawal from the COLR programme, AT&T specified that consumers who will no longer have access to PSTN services from the operator would be able to purchase similar VoIP or wireless services as a replacement from a variety of operators, including AT&T. It also noted that the asymmetric obligation to maintain its copper telephone network would hamper its ability to capitalise on large amounts of federal broadband spending, such as through the Broadband Equity, Access and Deployment (BEAD) programme, to cover underserved parts of California with fibre, blunting the overall impact of the scheme. The Commission is expected to make a decision on AT&T’s COLR application by September 2024. Should the operator’s application be approved, most consumers would lose access to AT&T’s PSTN services within six months.

PSTN withdrawal in California faces many of the challenges seen worldwide

Like many consumers facing a PSTN switch-off around the world, Californians have expressed a concern for the unreliability of mobile or VoIP services during power cuts and the compatibility of telecare or emergency alarm devices with new connections. In California, the regular and serious threat of wildfires, which often result in widespread and extended power outages among rural communities, provides a particularly challenging context for the reliability of the electricity grid and the communications services which rely on it. In the UK, Ofcom has been active in instructing operators on its expectations for the continued reliability of VoIP-based services through power outages, as well as the resilience of the mobile network as an alternative to landlines. In Germany, BNetzA also required operators to provide testing centres for telecare and emergency alarm device providers to ensure the compatibility of consumer devices following the PSTN switch-off there. As a number of countries prepare for a digital voice migration in the coming years, additional consumer protections put in place by regulators may be instructive for the US with operators in other states likely to request relief from their COLR obligations.