[NNagain] Fwd: [New post] Is Carrier of Last Resort Dead?

Wed Nov 15 07:37:34 EST 2023

I subscribe to this fella's blog although primarily to attempt to disagree
constructively in the chat section. This piece, tho... well, what do y'all
think?

https://potsandpansbyccg.com/

---------- Forwarded message ---------
From: POTs and PANs <donotreply at wordpress.com>
Date: Wed, Nov 15, 2023 at 7:32 AM
Subject: [New post] Is Carrier of Last Resort Dead?
To: <dave.taht at gmail.com>

[image: Site logo image] Doug Dawson, CCG Consulting posted: "The concept
of common carrier stretches back to the 14th century in English law, where
businesses were granted the exclusive right to be in business as long as
they were willing to serve everybody. The term common carrier came into use
to describe the obl" POTs and PANs <https://potsandpansbyccg.com> Is
Carrier of Last Resort Dead?
<https://public-api.wordpress.com/bar/?stat=groovemails-events&bin=wpcom_email_click&redirect_to=https%3A%2F%2Fpotsandpansbyccg.com%2F2023%2F11%2F15%2Fis-carrier-of-last-resort-dead%2F&sr=0&signature=58d2418b0494efcc441f902567d3bf43&blog_id=49312101&user=97642389&_e=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&_z=z>

Doug Dawson, CCG Consulting

Nov 15

<http://potsandpansbyccg.com?action=user_content_redirect&uuid=0628683c2b1c56ff407d2d86c6fa42907a2b152201b2428c6e77338f463aaa96&blog_id=49312101&post_id=17188&user_id=97642389&subs_id=27638629&signature=ad17a855ab6064320767fa74e15dbd9f&email_name=new-post&user_email=dave.taht@gmail.com&url=https://potsandpansbyccg.com/2014/12/02/supreme-court-to-rule-on-internet-threats-2/scales-of-justice-12987500-300x300/#main>The
concept of common carrier stretches back to the 14th century in English
law, where businesses were granted the exclusive right to be in business as
long as they were willing to serve everybody. The term common carrier came
into use to describe the obligation of businesses like coaches, ferries,
etc. that were required to serve anybody who asked to be transported. The
concept was carried over to businesses that were given a franchise to serve
a local area, and businesses like blacksmiths and innkeepers were required
to serve anybody who wanted service. This concept still applies to
businesses today, like railroads, which are not allowed to selectively
refuse to carry freight.

Carrier of last resort (COLR) is a version of common carriage that has been
applied to businesses that operate large networks like telephone companies,
electric companies, water companies, and gas companies. Federal or State
rules have always required such businesses to serve anybody inside of the
franchise area who requests service.

In exchange for being granted a franchise area, COLR for telephone
companies has always come with specific obligations. A COLR is expected to
serve everybody in the franchise area, even if that means extending
facilities. A COLR needs regulatory approval to withdraw from serving
customers. A COLR is expected to operate the business with care, skill, and
honesty and to charge fair and reasonable prices.

The concept of carrier of last resort for telephone companies started to
weaken with the passage of the Telecommunications Act of 1996. This Act
allowed for local telephone competition, and some legislators or regulators
granted relief for telephone companies from some of the carrier of last
resort obligations. For example, some states have eliminated COLR
obligations as part of deregulation. Some regulators have eliminated most
COLR obligations for specific telephone companies for the same reason. But
even in most cases where the COLR obligations have been weakened,
regulators still usually require a telco to ask for permission to withdraw
from a market.

While some COLR obligations were weakened, others were expanded. For
example, some states have required CLECs (competitive telephone companies)
to accept COLR obligations in exchange for participating in subsidy
programs. Cities have often only agreed to give a franchise agreement to
CLEC or ISP that agrees to serve everybody. In many cases, this obligation
is no longer explicitly called COLR, but uses terms like “duty to serve” or
“obligation to serve” but refers to obligations similar to COLR.

The COLR issue has come to the forefront for broadband because of broadband
grants and subsidies. Some state and local broadband grants have included
an obligation to serve everybody in a grant area. The largest subsidy
program to require 100% coverage is the Rural Digital Opportunity Fund
(RDOF). ISPs that accept this funding are expected to offer service to 100%
of homes and businesses in the covered Census blocks by the end of the
six-year deployment period. It’s not entirely clear if the upcoming BEAD
grants will require 100% coverage, and that final determination will likely
be included in each State’s final grant rules.

Is the agreement to serve customers that is obligated through a grant or
subsidy program the same as a carrier of last resort obligation? I expect
not. For example, will an RDOF winner be expected in the future to extend
the network to newly constructed homes?

There are clearly going to be households in RDOF areas that are not offered
service. For example, many of the RDOF winners use fixed wireless
technology, and there are always homes in any area that can’t be reached
with the technology for some reason. In hilly and heavily wooded areas,
this might be a large percentage of households.

Does a home that is not covered by RDOF have a reasonable remedy to get
service? In the past, a customer could complain to State regulators if a
telco was refusing to serve them. It’s hard to imagine an individual
homeowner opening an expensive and complicated FCC proceeding to complain
about being missed by RFOF.

Technology is also creating havoc in rural areas for traditional telephone
company obligations. When I was recently upgrading my cellphone in an AT&T
store, I overheard the AT&T representative tell a customer that they would
soon be losing their telephone copper and would be moved to FWA cellular
wireless.  My county is extremely hilly and wooded, and there is a major
lack of rural cell towers. There is a good chance that this customer is not
within reach of the offered cellular broadband. It sounds like the end of
carrier of last resort obligations if a telco can cut the copper wires and
move customers to a cellular service that doesn’t work at their home.

In circling back to the question asked at the beginning of this blog, are
there many places left where a regulator will step in and demand that an
ISP built infrastructure to reach an unserved household? I think the
chances of that happening are getting increasingly remote.
Comment
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Manage
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Automattic, Inc. - 60 29th St. #343, San Francisco, CA 94110

-- 
:( My old R&D campus is up for sale: https://tinyurl.com/yurtlab
Dave Täht CSO, LibreQos
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