This excerpt taken from the EQ 10-K filed Mar 9, 2007.
Carrier of Last Resort Obligations (COLR)
As an ILEC, we face COLR obligations which include an ongoing requirement to provide service to all who request service and are willing to pay tariffed rates. In competitive-bid environments, such as newly constructed housing developments or multi-tenant dwellings, this may constitute a competitive disadvantage to the company if competitors can choose to exclusively tie service to homeowners association fees or choose not to provide service to customers who are poor credit risks or whom they believe would be uneconomic to serve. COLR requirements may force the company to construct facilities with a low likelihood of positive economic return on this investment. Relaxation of COLR requirements is provided in a few of our states where we are relieved of providing service to certain developments served by a CLEC or cable operator. Additionally, relative to customers who are especially expensive to serve, we are considering, and seeking regulatory approval in targeted circumstances, as needed, to deploy service using alternative, less costly technologies, such as fixed wireless and seeking to share the cost of building out the network with those customers. Currently, our costs are partially offset by payments from the universal service programs. See Universal Service Programs below.