AARP Hearing Center
Background
Access to reliable phone service and affordable, high-quality internet service is essential. However, residents of rural areas are more likely to be served with an inadequately maintained telecommunications infrastructure. As a result, their phone companies may not provide a reliable link to the phone network and to emergency services.
In addition, many consumers face limited choices for internet services. This is especially true for people who live in rural areas and low-income neighborhoods, where providers are less likely to deploy high-speed internet services. Even where internet services are available, households with low incomes may be unable to afford them.
In addition, many providers bundle services together and only offer new services in those bundles. As a result, some consumers pay for services they do not need or want. And competition is virtually non-existent for stand-alone voice service, which many older adults on fixed incomes rely on. In many states, the largest telecommunications carriers are required to provide basic landline service to all parts of their service area. This is known as being a carrier of last resort. However, many are attempting to be released from this obligation.
Traditional landline telephone companies are also updating their networks. Many are replacing copper-wire infrastructure with fiber optics. Older adults disproportionately rely on wireline service, making this transition is critical to them. The new infrastructure offers greater capacity and can provide high-speed internet, voice, and video services. However, fiber-based service relies on electricity. When the power goes out, so does phone service, unless there is a backup battery. This means that fiber-based service may not be as reliable as a traditional landline during power outages.
The transition to fiber-based technology is happening gradually. In sparsely populated areas, where wireless service may be unavailable or spotty, residents are more likely to depend on a traditional landline for phone service. In some of these areas, however, traditional phone companies have not adequately maintained the copper infrastructure, compromising the quality of landline service. As telecommunications markets and technologies evolve, regulators will continue to play a key role in ensuring universal access to affordable and reliable stand-alone phone service and 911 emergency service.
Consumer choice in multifamily housing: The Federal Communications Commission has banned exclusive provider contracts in apartment complexes, condominiums, housing cooperatives, and other multifamily dwelling units (MDUs). In practice, residential tenants have limited utility and landline telecommunications choices. Typically, the homeowners association or owner contracts with one provider to serve all households. Neither entity can prohibit tenants from using alternative telecommunications providers. However, some owners have found loopholes, such as refusing to allow alternative providers to access their properties.
TELECOMMUNICATIONS MARKET REGULATION: Policy
TELECOMMUNICATIONS MARKET REGULATION: Policy
Essential telecommunications services
Policymakers should ensure that all consumers have access to essential telecommunications services in their residences. This service should be affordable, reliable, and high-quality. It should be available to consumers regardless of where they live (see also Consumer Protections, Service Quality, and Reliability).
Regulators should ensure consumer protection in phone service.
- All consumers should be able to subscribe to stand-alone basic telephone service with affordable rates, reliable service, and consumer protections. Providers should be prohibited from requiring subscribers to purchase one service (such as high-speed internet access) in order to obtain another (such as local telephone service).
- Rates should be required to be just, reasonable, and affordable.
- Consumers should be able to obtain service without a contract and unfair early termination penalties.
- Regulators should ensure providers are properly maintaining networks to ensure quality of service.
Effective competition
Federal and state policymakers should establish clear standards and conduct oversight to ensure genuine and effective competition. These efforts should ensure:
- a range of options at just, reasonable, and affordable rates, along with the ability to switch service providers easily;
- equitable distribution of the benefits of competition, including to consumers with low incomes and rural consumers;
- clear, reliable, and meaningful price and service-quality information.
Laws and regulations should be relaxed or removed only when doing so would provide clear consumer benefits.
If promises or predictions about competition, prices, service quality, reliability, and consumer protections are not met, policymakers should take action. They can impose sanctions, tighten regulatory controls, reconsider regulatory flexibility, or use a combination of these measures.
Federal and state policymakers should ensure that all occupants of multifamily dwelling units have access to the energy and telecommunications providers of their choice.
Internet protocol (IP) technology transition
Policymakers should ensure that the transition away from traditional landline phone service to IP-based services results in high-quality, reliable, and affordable communications services for all consumers (see also Consumer Protections, Service Quality, and Reliability). The transition should preserve all essential capabilities and functions of the landline network. Residential consumers should be required to benefit through expanded options, better quality, and more affordable prices.
To facilitate the transition away from traditional landline phone service, the private sector should prioritize creating an alternative option that meets the needs of rural residents and other underserved customers. Traditional local phone companies, known as incumbent local exchange carriers (ILECs), should be required to continue to provide service and maintain their networks until regulators appropriately determine that another phone service is available with comparable rates and quality. If regulators relieve ILECs of their Eligible Telecommunication Carrier and Carrier of Last Resort obligations, they should put in place consumer protection measures to mitigate consumer harm.