13. Carrier of Last Resort (COLR)
The Commission treats all rate regulated incumbent local exchange carriers the same with respect to their obligations as carriers and the rules to which they are required to conform. Incumbent local exchange carriers are required to provide reliable service on non-discriminatory terms at reasonable rates set by the Commission. Incumbent local exchange carriers also have COLR obligations.9 This means that DTS, as an incumbent local exchange carrier, would have to obtain Commission approval before discontinuing service. Additionally, to ensure continued service for its customers, DTS would be required to implement a migration of its existing customers to a suitable substitute service provider. The COLR provisions are intended to protect customers from suddenly being left without telecommunications services.
The area DTS is seeking to serve is all the currently unserved area in the state. We have some concerns about DTS' ability to fulfill the COLR obligations that come with incumbent carrier status. Specifically, we are uncertain about the likelihood of DTS finding a suitable substitute carrier if at some future time it is necessary for DTS to exit the market. This territory has never previously been the subject of an application to provide service. However, denying DTS' application ensures these areas remain unserved for the foreseeable future.
Therefore, we find it in the public interest to grant DTS' application and allow DTS to bring basic telecommunications service to historically unserved areas of the state although we understand that if DTS fails to provide service, or discontinues service at some time, these areas will again be unserved.10 DTS will be responsible for the COLR requirements in their entirety, including but not limited to notifying the Commission and its customers before discontinuing service and seeking a suitable substitute carrier for its customers.
9 D.95-12-056 at Appendix C, Rule 5.
10 DTS also intends to offer Broadband service to its customers.
