Industry Says California Can't Require Keeping Americans Connected
National telecom industry groups balked at a California plan to revive and require the FCC’s voluntary Keep Americans Connected pledge with no sunset. The California Public Utilities Commission lacks authority to stop disconnections for nonpayment and late fees amid the pandemic, said VoIP, wireless and wireline companies in Wednesday comments emailed to the service list for R.18-03-011. They said they still voluntarily help customers despite the FCC pledge having ended June 30.
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The CPUC plans to vote Dec. 17 on the proposed emergency resolution. Replies are due Monday in the expedited proceeding. The FCC declined to comment Thursday.
Consumer groups sought “narrowly tailored and meaningful consumer protection” in the proposal. “Despite the ongoing and escalating crisis ... the FCC allowed its Keep Americans Connected pledge to expire and carriers have begun to eliminate consumer protections and disconnect customers,” commented the National Consumer Law Center, The Utility Reform Network, Center for Accessible Technology, The Greenlining Institute and Small Business Utility Advocates. “Now is the time for the [CPUC] to exercise its jurisdiction authority.”
“Imposing a well-intentioned disconnect moratorium would actually harm consumers,” countered Verizon. It “would create perverse incentives for consumers to purchase or remain on higher-priced plans that they cannot afford ... with the understanding that they cannot be disconnected,” and customers will have to “manage large unpaid balances once it is lifted,” the carrier said. The proposed policy could “lead to the unchecked growth of customer debt,” AT&T warned: The FCC pledge was effective because it was “voluntary, need-based, of limited duration, and permitted carriers flexibility in offering relief to customers.”
The moratorium would be "prohibited rate regulation and ... an unconstitutional taking of wireless carriers' property," because it would effectively require free service indefinitely, said CTIA. It's “neither necessary nor appropriate," given carriers' voluntary steps, and exceeds CPUC authority, said USTelecom. Don't make "proscriptive regulation during a time of emergency,” said the Wireless Infrastructure Association, noting that the CPUC could have acted earlier and given more time to respond.
At least limit the moratorium to customers facing economic hardships due to COVID-19, urged the California Cable & Telecommunications Association, Charter Communications, Comcast and Cox. Let customers choose payment plans rather than forgo payment, and give industry a “reasonable” implementation period to update disconnection protocols and billing systems, they said. The cable filers suggested specifying the end of Q1 as an expiration date.
The CPUC "fails to recognize that the FCC’s regulatory scheme for VoIP service preempts state regulation" of interconnected VoIP under its 2004 Vonage order, said the Voice on the Net Coalition. The association disagreed the Vonage order retained wide state jurisdiction for consumer protection. The agency can't rely on the U.S. Court of Appeals for the D.C. Circuit's Mozilla decision for state jurisdiction because broadband is different than VoIP, the VON Coalition said. Cable agreed the CPUC lacks authority over VoIP and wireless.
Small telcos sought a promise to be made whole. "Small carriers do not have sufficient resources” otherwise, commented Velocity Communications, A+ Wireless and CenturyLink. “They need certainty that they will be able to recoup these losses.” Exempt providers with 1,000 or fewer residential and small-business customers and require them instead to detail voluntary measures, they said. Lost revenue should be recoverable through the California High Cost Fund-A as part of the annual adjustments process, said CalTel and other small LECs, urging a three-month sunset on the proposed resolution. Consolidated Communications wants clarification that bills won’t be forgiven and that the policy will expire in six months at most.