Carrier of Last Resort - HB 3065 Gathering information on telecommunications preferences across the state
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Carrier of Last Resort
HB 3065
Gathering information on telecommunications
preferences across the state
House Bill 3065
• In House Bill (HB) 3065, the Oregon Legislature directed the PUC to
establish a public process to investigate the continuing relevance of the
carrier of last resort (COLR) obligation on telecommunication providers
under ORS 759.500 to 759.570.
• COLR obligations were created to ensure that, when an incumbent local
exchange carrier (ILEC) was granted the exclusive right to serve a
designated service territory, the ILEC would provide service to all
customers within that service territory.
• The PUC met with a large group of stakeholders over the course of
several workshops to gain insights in the COLR obligation, in addition
PUC Staff developed a survey to gather public input from across the
state.
2
Survey Methodology
• This survey employed convenience
sampling in its methodology.
Convenience sampling is a specific
type of non-probability sampling
that relies on data collection from
population members who are
conveniently available to
participate in a study.
• For this reason, the findings of this
survey are not meant to be
interpreted as statistically
significant or fully representative of
the population of Oregon.
3
Survey Response
• 2681 total
responses
• Responses from
all 36 counties
in Oregon
• Responses from
367 zip codes in
Oregon
4
The Urban-Rural Divide
5
6
Percent with Landline
Rural
Small Town 55% of Rural
respondents
indicated they had
a landline
Suburban
telephone
Urban
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
7Percentage of Respondents who indicated that service type is either 'Important' or
'Very Important'
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Urban Suburban Unincorporated Rural Area Small Town
Landline Telephone Service Internet Service
8Internet Quality & Landline Reliance
910
11
Percentage of Respondents who indicated they either 'Agree' or 'Strongly Agree'
with the statment 'I rely on my landline for daily communication'
1
0.9
0.8
0.7
Percentage of Respondents
0.6
0.5
0.4
0.3
0.2
0.1
0
1 2 3 4 5
1213
High-Level Conclusions
Quality and Reliability of Internet Service is Closely
Tied to Reliance on Landline Telephone Service
• Individuals in the PUC survey who had less reliable or slower internet were more
likely to indicate that they relied heavily on landline telephone service or believed
that access to landline telephone service was important or very important.
Promoting Universal Broadband Access Promotes
Universal Voice Service
• Meeting the broader policy goal of universal access to broadband may mitigate the
need underlying the COLR obligation for voice telephony, as broadband service can
provide both information and voice services. More than a quarter of Oregonians live
in areas that are unserved, underserved, or have older technologies that will not be
able to meet the digital demands of the very near future.
14Oregon Universal Service Fund (OUSF)
Oregon Universal Service Fund (OUSF)
• ORS 759.425
• Ensure Basic Telephone Service is available at a reasonable and
affordable rate
• Encourage Broadband
• Contributions
• 5% surcharge on Intrastate retail telecommunications revenue
• 2019 - $27.5m
• Disbursements
• High cost areas - 31 recipients
• 2019 - $28.5m
• SB1603 (2020 Special session)
• Include VoIP & Wireless contributors
• Fund & Surcharge capped
• Annual transfer to Broadband fund up to $5mOregon Universal Service Fund (OUSF)
• Issues
• Declining contribution base
• Even with the inclusion of VoIP & Wireless, the surcharge rate
is on intrastate voice revenue which is declining
• Investigation of the OUSF - UM2040
• Phase I - Calculation of disbursements
• Phase 1a - Role of Competition
• Phase II - Accounting and operational issues
• Completed by December 2021 (hopefully!)Thank you!
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