HB113 Alabama 2011 Session

Summary

Primary Sponsor

Oliver Robinson

Democrat

Co-Sponsor

Mike Hill

Session

Regular Session 2011

Title

Telephone service, basic, obligation of carrier of last resort, exceptions based on arrangements with alternative carriers by property owner or developer, Sec. 37-2A-8 am'd.

Summary

HB113 limits the incumbent carrier’s obligation to provide basic telephone service, adds specific exceptions related to alternative providers and property developers, and changes how rates and optional features are regulated.

What This Bill Does

It sets an $8,000 cost threshold for the incumbent to provide basic service; if costs exceed $8,000, service may still be provided if funds from the Alabama portion of the federal universal service fund are available. If an alternative provider can’t be maintained and the property owner/developer engages in certain actions, the incumbent’s last-resort obligation can be lifted. If an alternative provider goes out of business and no other provider is available, the incumbent must provide voice service using available technology through affiliated companies, if access to the property exists. It also limits basic service price increases and shifts regulatory authority over rates and optional features, while requiring stand-alone pricing for optional features and imposing caps on increases for those features.

Who It Affects

• Incumbent local exchange carriers: face limits on when they must provide basic service and potential relief from the last-resort obligation under certain owner/developer actions.
• Property owners or developers: have to consider how alternative providers may be installed or incentivized, and their actions can affect whether the incumbent is required to serve.
• Occupants/residents of real property: may experience changes in how basic service is provided and which providers can compete for their service.
• Alternative communications service providers: may gain or lose access and incentives depending on property actions and regulatory rules.
• Alabama universal service fund (federal program): may fund basic service if costs exceed the threshold and funds are available.

Key Provisions

• Incumbent carriers must provide basic telephone service if the cost to do so is $8,000 or less; if costs exceed $8,000, service may still be provided if funds from the Alabama portion of the federal universal service fund are available.
• If the property owner/developer or their agent engages in actions that exclude the incumbent or incentivize alternate providers (e.g., installation during construction under exclusion, incentives to exclude the incumbent, mandatory charges collected for alternate providers, or prohibiting full service), the incumbent’s last-resort obligation is relieved and they are not obligated to serve.
• If an alternate provider goes out of business and no other provider is available, the incumbent must provide voice service using any available technology through affiliated companies, with reasonable access to the property.
• Prices for basic service may not exceed the highest price charged on January 31, 2007; from 2008 through 2010, annual price increases cannot exceed the Consumer Price Index, and state regulatory oversight of these costs for businesses/government is limited in later years.
• Optional telephone features must be available stand-alone; bundled offers must be tariffed; tariffed feature rate increases from 2008–2010 may not exceed 5% per feature per year; residential bundles including basic service and features must be priced at or below the sum of their tariffed components; regulation of costs for optional features is reduced after 2011.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Telecommunications