HB196 Alabama 2012 Session

Summary

Primary Sponsor

Oliver Robinson

Democrat

Co-Sponsor

Mike Hill

Session

Regular Session 2012

Title

Telephone service, basic telephone service, defined to be consistent with federal regulation and include cell phone service, etc., obligation to provide service removed, exception for certain time, Secs. 37-2A-2, 37-2A-8 am'd

Summary

HB196 redefines basic telephone service, narrows when carriers must provide it, and reduces state regulatory controls and pricing rules for Alabama's local phone carriers.

What This Bill Does

Defines basic telephone service with a specific list of features and allows incumbents to stop providing it if the cost to serve a customer exceeds $8,000 (potentially requiring funds from universal service). Creates a process for potentially relieving carriers of the carrier-of-last-resort obligation, with election rules and deadlines. Establishes a PSC process to order service or conduct procurement if a residence cannot receive voice service, with a final decision within 90 days. Phases out state regulation of basic service costs from 2007 through 2011, including price caps, tariff stand-alone rules for optional features, and limits on increases for bundled offerings.

Who It Affects

• Incumbent local exchange carriers (LECs): may be relieved of the obligation to provide basic telephone service if costs exceed $8,000 (with potential funding from federal universal service funds) and may elect to retain or drop the obligation under specified timelines.
• Residential and business customers in Alabama: could see changes in availability and pricing of basic telephone service, with potential protections like price caps and stand-alone tariffs, but also potential loss of guaranteed basic service if incumbents opt out.

Key Provisions

• Defines Basic Telephone Service as a restricted set of features (dial tone, local two-way calling, directory listing, DTMF signaling, operator and directory assistance, relay services, E-911 access, and access to inter-exchange long distance) and clarifies it does not include other services beyond these features.
• Allows an incumbent local exchange carrier to avoid providing basic telephone service if the cost to serve a customer is over $8,000; if costs exceed $8,000, service may still be required if sufficient funds are available from the Alabama portion of the federal universal service fund.
• Relieves an incumbent carrier of the carrier-of-last-resort obligation under certain conditions (including owner/developer actions that exclude the incumbent) and provides a process for residents with no service to obtain service via PSC orders or competitive procurement, with a final order within 90 days; includes transition provisions for electing to retain or drop the obligation.
• Implements price and tariff controls that phase out regulation over time: caps on basic service prices (starting 2007 and CPI-based increases 2008-2010), requirements for stand-alone tariffs for optional features, limits on tariffed feature increases (5% per year 2008-2010), and eventual deregulation of basic service and optional features by 2011; also requires bundled offerings to be priced in relation to their components.

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

Subjects

Utilities