CLECs, Cable Seek California RLEC Competition; TURN Urges Caution
Open California rural LEC markets to competition, urged CLECs and cable companies. They commented Tuesday on a fourth scoping memo in docket R.11-11-007 at the California Public Utilities Commission, related to a broadband competition study and the agency’s review of…
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the state High Cost Fund-A (CHCF-A) program (see 1903250028). “Federal and state law and policy support opening RLEC markets to competition,” and the study gave no reason for further delay, said the California Cable and Telecommunications Association. “Many voice service providers already offer service in RLEC areas through wireless, satellite and over-the-top” VoIP, CCTA said. “Providers with fiber facilities currently offer broadband and video services in RLEC areas but cannot also offer their customers wireline voice service through those same facilities solely because of the CPUC’s delay in removing the regulatory barrier to competition.” The California Association of Competitive Telecommunications Companies said continuing to delay “competition extends an unwarranted and unlawful moratorium on market entry that stifles and distorts competition, broadband deployment and consumer competitive choice.” The Utility Reform Network cautioned that allowing voice competition could lead to higher prices and less reliable service in remote areas. “While competition can theoretically provide benefits to some customers, it is very likely that competitors would focus on serving the most lucrative residential and business customers,” TURN commented. “This loss of revenue puts pressure on the Small LECs to raise prices and increase draws from the CHCF-A to maintain their Carrier of Last Resort (“COLR”) obligations and provide their entire operating territory with affordable and high quality services.” Small LECs urged the CPUC to throw out the broadband study because they said it’s biased and full of errors.