David Shepardson
(Reuters) – California has rejected AT&T’s (NYSE:) proposal to stop offering fixed-line phone and other services as a “carrier of last resort,” the state agency said on Thursday.
Marin County said AT&T’s request, made in March 2023, would have resulted in the loss of service to more than 580,000 eligible households statewide.
The California Public Utilities Commission said in denying AT&T’s request that the decision did not stop AT&T from retiring equipment or investing in fiber or other facilities or technologies to improve its network.
AT&T California President Mark Blakeman said, “We are fully committed to keeping our customers connected as we work with state leaders on policies that create a thoughtful transition that will bring modern communications to all Californians.”
The company aimed to ensure that customers could retain their existing traditional fixed voice services until they had access to an alternative. “No customer will be left without voice and emergency services,” Blakeman said.
The CPUC said AT&T plays a key role in providing reliable phone service to communities across the state and said the company did not meet the requirements to exit.
“We will protect customers’ access to basic telephone services – no matter where they live, have an income or have access to other forms of communication. Our rules were designed to provide that guarantee, and the AT&T app did not comply with our rules,” Commissioner John Reynolds said. .
On Thursday, the CPUC opened new rulemaking proceedings to adapt its rules to changing market conditions and technological advances.
AT&T said it must pass a rigorous FCC vetting process to ensure Californians continue to have access to reliable voice services.
He also mentioned proposed legislation that would ensure that rural consumers do not suffer. “We are fully committed to keeping our customers connected as we work with state leaders on policies that create a thoughtful transition that will bring modern communications to all Californians,” AT&T said.