California might deny AT&T's application for carrier-of-last-resort (COLR) relief. The state's Public Utilities Commission will vote during its June 20 meeting on a proposed decision dismissing the carrier’s application in docket R.23-03-003. Comments are due May 30. Also, the CPUC said it plans to open a rulemaking on possibly revising COLR rules. The state commission’s withdrawal rules require another existing COLR or a replacement in the area where a company is leaving, CPUC Administrative Law Judge Thomas Glegola said in the proposal. “No other COLR serves AT&T’s service territory. No potential COLR applied to replace AT&T.” The commission delayed the proceeding so it could find possible replacements (see 2403120052). The CPUC received more than 5,000 public comments about the AT&T application and more than 5,800 people attended eight public forums around the state, said a CPUC news release. Many raised concerns that wireless and VoIP were unreliable, the agency said. “Despite AT&T’s contention that providers of voice alternatives to landline service -- such as VoIP or mobile wireless services -- can fill the gap,” the CPUC’s tentative decision finds that the carrier “failed to demonstrate the availability of replacement providers willing and able to serve as COLR, nor did AT&T prove that alternative providers met the COLR definition,” the CPUC said. The COLR rules don’t stop AT&T from retiring copper or investing in fiber, the agency added. AT&T is disappointed because “we’d hoped the commission would allow us the opportunity to demonstrate why the number of options for voice service available to customers make the COLR obligation unnecessary,” a company spokesperson said. “Not surprisingly, no providers were interested in bidding on a service with a declining number of customers given the competitive options available in today’s marketplace.” AT&T looks forward to participating in future CPUC evidentiary hearings on COLR rules, the spokesperson added.
A possible shakeup of Vermont's universal service passed the legislature Thursday. The House concurred with the Senate’s amendment to HB-657. Rather than the current 2% revenue-based state Universal Service Fund mechanism, the bill would assess 72 cents monthly per retail access line, including VoIP and postpaid wireless (see 2404030046. Also, the bill would add the 988 mental health hotline to a list of what state USF may support and repeal Vermont taxes on telephone personal property and alternative telephone gross revenue. However, the Senate removed a proposed fee structure for communications facilities using state right of way that was in the version originally passed by the House. Instead, the Senate amendment orders a Transportation secretary study on the subject, due Oct. 15, 2025. Gov. Phil Scott (R) must sign the bill before it can become law.
Maryland will consider using AI for its 311 system. Gov. Wes Moore (D) signed SB-1068, directing the Department of Information Technology to evaluate the feasibility of an AI-based statewide 311 system and possibly launch a pilot. The 311 hotline is used for reporting nonemergencies and getting information about city services.
The South Carolina legislature approved a measure requiring age verification to keep kids younger than 18 off pornographic websites. On Thursday, the House passed an amended HB-3424 and the Senate concurred. The bill will go to Gov. Henry McMaster (R).
T-Mobile voluntarily dismissed its complaint against the California Public Utilities Commission regarding the state’s shift to a per-line universal service fund surcharge. The 9th Circuit Court last month affirmed the U.S. District Court for Northern California decision to deny a preliminary injunction against the CPUC (see 2404260066). The 9th Circuit said the carrier failed to show a likelihood of success. “This notice of voluntary dismissal is being filed with the Court before Defendants have served either an answer or a motion for summary judgment … and by operation of law, the dismissal is without prejudice,” T-Mobile said Thursday at the district court (case 3:23-cv-00483-LB).
Four of five Pennsylvania public utility commissioners supported a Frontier Communications settlement Thursday that resolves a service quality complaint. The PUC approved an administrative law judge’s decision to accept without modification a pact between Frontier and state consumer and small business advocates (see 2403220066). Under the settlement, Frontier agreed to spend $100 million on its Pennsylvania network through 2026 and give bill credits to customers with service problems prospectively and retroactively. Commissioner Kimberly Barrow was upset that the agreement lacked a civil penalty for Frontier. Its customers were “without access to telephone or broadband services which could impact the customer's access to education, medical or emergency services, work, and/or personal communications and interactions,” Barrow wrote. “It is well known that access to telephone and broadband services is critical to everyday life and lack of access could have a serious impact, thus the consequences of Frontier's alleged conduct should be deemed serious.” While Frontier agreed to invest $100 million in infrastructure and workforce, the carrier should have been doing that already, said Barrow: The settlement doesn’t “provide a deterrent for future behavior or punish for past behavior.” Frontier didn't comment.
Maryland Gov. Wes Moore (D) signed a kids safety bill (HB-603) modeled after the California Age-Appropriate Design Code Act, his office confirmed Thursday. Moore signed despite the tech industry's veto request. NetChoice General Counsel Carl Szabo said the Maryland law is unconstitutional and will have unintended consequences, all without making the internet safer for kids. Meanwhile, two other states advanced bills aimed at protecting children online Wednesday. The Pennsylvania House voted 105-95 to pass HB-2017, which would set age-verification and content-flagging requirements for social media companies (see 2403190050). The bill will go to the Senate. In South Carolina, the Senate voted 43-0 for H-3424, another bill requiring age verification to keep kids younger than 18 off pornographic websites. The House previously passed the bill (see 2402010024) but will have to vote again to concur with Senate changes.
AT&T, T-Mobile and Verizon Wireless will pay about $10.25 million to the 50 states and the District of Columbia under an agreement that settles claims of deceptive and misleading advertising practices, multiple state AGs announced Thursday. The bipartisan AGs signed a pact with AT&T, T-Mobile and Verizon Wireless to resolve the investigations. The three carriers “baited consumers with deceptive claims about ‘unlimited’ data, ‘free’ phone offers and incentives to switch, only to switch the offer and not deliver on their advertised claims,” Minnesota Attorney General Keith Ellison (D) said. In addition to the monetary penalties, the carriers agreed to make future ads truthful, accurate and not misleading, Ellison's office said. Going forward, unlimited must mean no numerical limits and such plans should disclose any data speed restrictions and what triggers them, it said. Carriers offering to pay for customers to switch companies must clearly disclose what and how they will pay consumers, it said. Among other requirements, the carriers must present clear terms and conditions for so-called free devices or services, it said. A CTIA spokesperson said the “voluntary agreements reflect no finding of improper conduct and reaffirm the wireless industry’s longstanding commitment to clarity and integrity in advertising so that consumers can make informed decisions about the products and services that best suit them.” T-Mobile said, “After nine years, we are glad to move on from this industry-wide investigation with this settlement and a continued commitment to the transparent and consumer-friendly advertising practices we’ve undertaken for years.” AT&T and Verizon referred us to CTIA’s statement. State AGs slammed the carriers as they applauded the settlement. New York AG Letitia James (D) said it’s a good resolution after carriers “lied to millions of consumers.” Many wireless carriers' deals are “too good to be true,” California AG Rob Bonta (D) said. Ohio AG Dave Yost (R) said “it's unacceptable to make false promises about what consumers might expect from their wireless carriers.”
NTIA approved initial proposals from the District of Columbia, Delaware and Washington for its $42.5 billion broadband, equity, access and deployment program, it said in a news release Thursday (see 2404250042). D.C. is eligible to receive more than $100 million. Mayor Muriel Bowser (D) said the city will use the funding for increasing residents' internet access "as well as provid[ing] beginner-to-advanced digital literacy training and high-value workforce development training." Delaware will receive more than $107 million, Washington state more than $1.2 billion.
The Kentucky Public Service Commission temporarily increased the state USF surcharge for the state Lifeline program to 18 cents per access line (see 2309190078). An order Wednesday said the surcharge will remain "for the pendency of this proceeding or until further order by the commission." The PSC will initiate a review of the state fund in March, the order said.