SB87 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Del Marsh
Republican
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: SB87 updates Alabama's basic telephone service rules to set cost limits for last-resort service, create exceptions when property developers use alternative providers, and adjust rate and bundling regulations.
What This Bill Does
It allows an incumbent carrier to provide basic service if the cost is under $8,000; if costs exceed $8,000, funding from the federal universal service fund can cover the service. If property owners or developers push alternative providers or incentives to exclude the incumbent, the carrier of last resort may be relieved of that obligation, and if the alternate provider fails, the incumbent must supply voice service using available technology. The bill also sets price caps on basic service and modifies regulation over bundled services and optional features through 2011, with overlapping timelines for deregulation of certain rates and services. It requires tariffed, stand-alone options for features and sets annual cap limits on tariffed feature increases through 2010. The act becomes effective on the first day of the third month after it becomes law.

Who It Affects
Incumbent local exchange carriers (ILECs) — must provide basic service under cost limits, may be relieved of last-resort obligations if property developers resort to alternative providers under specified conditions, and face gradual changes to rate regulation and bundled feature rules.
Property owners, developers, and residential/business occupants — may experience leverage for alternative providers and restrictions on incumbent services during construction or when incentives are offered to exclude incumbents; consumer pricing for basic and bundled services is affected by rate caps and tariffing requirements.

Key Provisions
Cost-based basic service rule: an incumbent carrier must provide basic service if the cost to the recipient is under $8,000; if over $8,000, funding from the Alabama portion of the federal universal service fund can cover the service.
Carrier of last resort exemptions: if a property owner/developer enables an alternative provider during construction, accepts incentives to exclude the incumbent, collects mandatory charges for alt provider services, or prohibits full incumbent service, the incumbent may be relieved of the obligation to provide basic service; if the alt provider fails and no other provider is available, the incumbent must provide voice service using available technology via affiliated entities.
Rate regulation timeline: basic service retail prices cannot exceed the highest price charged on Jan 31, 2007; from 2008-2010, annual rate increases cannot exceed the previous year’s rate plus CPI; deregulation steps begin for business/government and basic service costs by 2009-2011.
Bundled services and features: each optional feature must be available standalone; bundled basic service must have a tariffed offering; 2008-2010 tariffed feature increases capped at 5% per year; bundled pricing through 2010 must not exceed the sum of tariffed basic service and feature prices; after 2011, regulatory oversight of optional features ends.
Effective date: the act becomes effective on the first day of the third month after it becomes law.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Telecommunications