California telecom service quality standards could expand to more types of providers and carry new penalties under a California Public Utilities Commission staff proposal released last week. Current enforcement for plain old telephone service (POTS) hasn’t improved service, CPUC staff found. “In addition, the light-touch approach for VoIP and wireless services has not yielded improved service quality for those customers.”
A top California communications lawmaker pushed back on industry opposition to a bill that would require $30 affordable internet plans as a condition of receiving California Advanced Services Fund (CASF) infrastructure grants. The Assembly Communications Committee voted 8-2, with two Republicans voting no, to advance SB-424 at a Wednesday hearing. In addition, the committee voted 10-0 for bills that set broadband labor standards (SB-1460) and expand eligibility for CASF public housing broadband grants (SB-1383). All three pieces of legislation, previously passed by the Senate, will go to the Appropriations Committee.
An administrative law judge recommended a $200,000 fine for T-Mobile’s MetroPCS in a California Public Utilities Commission investigation related to a state universal service fund surcharges dispute. The CPUC’s enforcement division sought a $10 million fine because the carrier insufficiently responded to a Sept. 27, 2021, data request (see 2209230032). MetroPCS’ response violated the state utilities code and a commission rule, and the carrier should pay the maximum $100,000 allowed for each offense, ALJ Robert Mason said. But the judge disagreed with the enforcement division that the company’s conduct was a continuing offense, which would allow for higher penalties. A pending and related court case didn’t excuse the carrier from responding fully, said Mason, who also dismissed the carrier's other objections. “A penalty is … needed to punish the degree of MetroPCS’ wrongdoing and ensure the protection of the public interest,” he said. Parties in docket I.22-04-005 have until July 25 to appeal the ALJ decision, or it will become final. T-Mobile didn’t comment.
A California Senate panel scaled back what the California Public Utilities Commission could require from cable companies under a proposed update of the state’s 2006 video franchise law, known as the Digital Infrastructure and Video Competition Act (DIVCA). At a hearing webcast Monday, the Senate Communications Committee voted 12-4 to approve the Assembly-passed AB-1826 with amendments. The Senate committee delayed receiving testimony on an Assembly-passed equity bill (AB-2239) that would ban digital discrimination as defined by the FCC (see 2405230012).
The California Public Utilities Commission has it “backwards” in presuming that the carrier of last resort (COLR) remains necessary, Free State Foundation President Randolph May blogged Monday. The CPUC decided last week (see 2406200065) to open a proposed rulemaking that would update COLR regulations with “a rebuttable presumption that the COLR construct remains necessary, at least for certain individuals or communities in California.” May responded, “Given the undeniable change in the competitive landscape, driven by ongoing technological advancements … there should be a rebuttable presumption that the COLR construct remains unnecessary.”
The California Public Utilities Commission on Thursday denied AT&T relief from carrier of last resort obligations, while opening a rulemaking to take a fresh look at COLR rules. Also at its meeting, the CPUC approved broadband grants, acted on enforcement items and set annual budgets for the California Advanced Service Fund (CASF) and state video franchise law.
The California Public Utilities Commission could collect feedback this fall on whether to revise its carrier of last resort (COLR) rules, according to a proposed decision released Monday. The CPUC plans a June 20 vote on opening a rulemaking to weigh possible changes to COLR rules, along with a related item that would deny COLR relief to AT&T (see 2406050016 and 2405310029), a meeting agenda also posted Monday said. “In general, the purpose of this proceeding is to consider whether the Commission should revise its COLR rules and, if yes, what those revisions should be,” the CPUC draft said. The proposed rulemaking would adopt “a rebuttable presumption that the COLR construct remains necessary, at least for certain individuals or communities in California,” it said. Among other questions, the CPUC would ask if there are areas that may no longer require a COLR, if it should require VoIP or wireless providers to be COLRs, and if it should revise rules on how current COLRs may shed those obligations. If approved by the California commissioners, comments would be due Sept. 30, replies Oct. 30.
The FCC urged the 6th U.S. Circuit Appeals Court Friday to move the challenge to the FCC’s net neutrality order to the D.C. Circuit (docket 24-3450). The FCC also issued an order declining to stay the rules, which take effect July 22, pending judicial review.
California could soon release more than $100 million in last-mile broadband grants through the California Public Utilities Commission's federal funding account (FFA), the CPUC said Friday. Three projects in Plumas County will receive $16.7 million through staff-delegated authority, the CPUC said. In addition, commissioners will consider two draft resolutions for an additional $88.6 million in awards at a July 11 meeting, the agency said. Draft resolution T-17826 recommends $44.1 million for unserved areas in Imperial, Lassen and Plumas counties. The Golden State Connect Authority and Plumas-Sierra Telecommunications would build the networks. Draft resolution T-17829 recommends $44.4 million for unserved areas in Alameda, San Francisco and Sierra counties. The awardees in that draft would be Plumas-Sierra and the cities of Oakland, Fremont and San Francisco. The CPUC has $2 billion available in the FFA and received applications requesting more than $4.6 billion total, the agency said. California Assembly Communications Committee Chair Tasha Boerner Horvath (D) raised concerns earlier this week about CPUC delays getting last-mile grants using 2021 American Rescue Plan Act dollars out the door (see 2406050065).
The California Public Utilities Commission may vote July 11 on a proposed decision related to ratemaking for small local exchange carriers. It would respond to Calaveras Telephone and other small LECs’ September 2022 application seeking approval to establish cost of capital for each company’s ratemaking purposes (see 2306070065). Cost of capital is the rate of return a company may recover on infrastructure investments. The CPUC draft would establish a cost of capital for 2022-2025. “To arrive at the Cost of Capital for the Small LECs, this decision adopts a hypothetical capital structure” of 55% equity and 45% debt, “which we find to be consistent with our findings with respect to the regulatory capital structure of these companies,” the draft said.