SB169 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

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

SB169 redefines basic telephone service to align with FCC rules (including VoIP and cell service), narrows the carrier-of-last-resort obligation for incumbents, and creates new rules for pricing, tariffs, and competition in Alabama.

What This Bill Does

It redefines basic telephone service to include voice telephony delivered by incumbents via any technology (including VoIP) and lists the required features. It defines VoIP service with criteria similar to FCC standards. It sets cost-based rules for providing basic service (requiring it if costs are under $8,000, or allowing funding from the universal service fund if higher). It allows incumbent carriers to be relieved from last-resort obligations under certain conditions and creates a process for alternatives to replace incumbents, with protections if those alternatives fail. It introduces an opt-out process for incumbents and a PSC-driven path to provide service to residences lacking voice service, with a 90-day final order timeline and a temporary repeal after 12 months. It imposes tariffing and pricing requirements for basic and optional features, caps price increases through 2010, and shifts regulatory authority away from the PSC for basic service and some features after 2011.

Who It Affects

• Incumbent Local Exchange Carriers (ILECs) operating in Alabama: potential changes to obligations, including cost-based provision of basic service, ability to opt out of last-resort duties, and required filings with the Public Service Commission.
• Residential and business customers within franchised territories (including property owners and developers): potential access to basic voice service or alternatives, with implications for pricing, availability of standalone features, bundled offerings, and protection if no voice service is available.

Key Provisions

• Definition of basic telephone service updated to FCC standards and includes technologies like VoIP and cell service; lists required features.
• Defines VoIP service using criteria such as real-time two-way voice, broadband connection, IP-based equipment, and ability to reach the public switched telephone network.
• Establishes cost-based access: an incumbent must provide basic service to a permanent residence if costs do not exceed $8,000; if costs exceed this, funds from the Alabama portion of the federal universal service fund may be used to support the provision.
• Carrier-of-last-resort obligations can be relieved if the owner/developer excludes the incumbent, accepts incentives from an alternative provider, or collects mandatory charges for alternate provider services; if the alternative provider fails, the incumbent must provide voice service.
• Incumbents may opt out of providing basic service by notifying the Public Service Commission; if they file by a deadline, relief takes effect on January 1 of the following year; relief does not affect federal obligations.
• For residences lacking voice service, the bill sets a PSC process that may order service or conduct a competitive procurement, with a final order due within 90 days; this provision is temporary and repealed after 12 months.
• Tariffing and pricing rules: basic service prices capped (starting with the highest price in Feb 2007); 2008-2010 price increases for basic service limited by CPI; optional features must be tariffed stand-alone; bundled residential offers must be priced as the sum of basic service and features; by 2011, PSC cannot regulate basic service costs or optional features.

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

Subjects

Utilities