AL SB87

Incumbent local exchange carriers must provide basic telephone service to permanent residences within their service territory if costs do not exceed $8,000; carriers may still provide service above $8,000 if federal universal service funds are available.

Carriers of last resort are relieved of service obligations if property owners permit alternative providers to exclude the incumbent carrier during construction, accept incentives contingent on alternative provider exclusivity, collect mandatory charges for alternative services, or prohibit carriers from offering full communications services including video.

If alternative communications providers fail and no other provider offers service, incumbent carriers must provide voice service using available technology through affiliated companies, subject to cost limitations and reasonable property access.

Beginning August 1, 2009, the Public Service Commission loses jurisdiction over telecommunications rates for businesses and government entities; beginning January 1, 2011, it loses jurisdiction over basic telephone service and optional telephone feature rates.

Residential bundled offerings must include stand-alone tariffed options; rate increases for optional features are capped at 5 percent annually through December 31, 2010; bundled residential packages must not exceed the sum of individual tariffed prices through that date.