Client Alert: California Opens Rural Areas to CLEC Competition, With Conditions

Since time immemorial, the service territories of California’s 13 rural local exchange carriers (RLECs) have been walled off from wireline competition. Even as wireless carriers and over-the-top voice providers expanded services into these territories over the last two decades, the RLECs continued to enjoy a monopoly over wireline telecommunications services. That is until last week, when, on August 6, 2020, the California Public Utilities Commission (CPUC) voted to open the RLEC service territories to wireline competition from Competitive Local Exchange Carriers (CLECs).

Despite that these markets are now “open,” a surge of new competition is unlikely to happen overnight. In its order, the CPUC erected numerous conditions that CLECs must meet if applying to operate in RLEC service territories. For example, CLECs will be required to serve a proportionate number of residential to business customers, and proportionate number of low-income to non-low-income customers, as well as file geospatial maps detailing the CLECs network architecture. While these additional conditions may dissuade many CLECs from operating in RLEC territories, for the right CLEC this new order by the CPUC will present a ripe opportunity to expand its footprint.

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© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

Client Alert: California Opens Rural Areas to CLEC Competition, With Conditions

Since time immemorial, the service territories of California’s 13 rural local exchange carriers (RLECs) have been walled off from wireline competition. Even as wireless carriers and over-the-top voice providers expanded services into these territories over the last two decades, the RLECs continued to enjoy a monopoly over wireline telecommunications services. That is until last week, when, on August 6, 2020, the California Public Utilities Commission (CPUC) voted to open the RLEC service territories to wireline competition from Competitive Local Exchange Carriers (CLECs).

Despite that these markets are now “open,” a surge of new competition is unlikely to happen overnight. In its order, the CPUC erected numerous conditions that CLECs must meet if applying to operate in RLEC service territories. For example, CLECs will be required to serve a proportionate number of residential to business customers, and proportionate number of low-income to non-low-income customers, as well as file geospatial maps detailing the CLECs network architecture. While these additional conditions may dissuade many CLECs from operating in RLEC territories, for the right CLEC this new order by the CPUC will present a ripe opportunity to expand its footprint.

Related Locations

© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

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