AT&T Sues California In Bid To Stop Offering Traditional Phone Service

Published: (May 21, 2026 at 11:30 PM EDT)
2 min read
Source: Slashdot

Source: Slashdot

AT&T Sues California Over Traditional Phone Service Requirement

An anonymous reader quotes a report from Reuters:

AT&T filed a lawsuit (PDF) against California officials seeking a court order that would relieve the company of the obligation to continue offering traditional copper‑wire phone service to new customers. The carrier has pledged to spend $19 billion on modern telecom services in the state.

  • Defendants: California Public Utilities Commission and the California Attorney General.
  • Court: U.S. District Court, Southern California.
  • Relief Sought: A declaration that California’s rules requiring AT&T to power, repair, and sell traditional phone service—despite FCC authorization to phase it out—are preempted by federal standards.
  • Additional Petition: AT&T asked the Federal Communications Commission (FCC) for permission to discontinue traditional phone service in areas where faster, more reliable IP‑based networks are available.

Investment and Service Plans

  • AT&T commits to investing $19 billion in California to connect more than 4 million additional households and businesses by 2030.
  • The company argues that IP‑based networks are far more reliable and efficient than the aging copper infrastructure, which now serves only 3 % of households in AT&T’s California territory.
  • California currently requires AT&T to spend $1 billion annually to maintain the century‑old telephone network, which the carrier says is underutilized.

Environmental Impact

  • Transitioning from copper is projected to save an estimated 300 million kilowatt‑hours annually by 2030.
  • This energy reduction is equivalent to eliminating emissions from 17 million gallons of gasoline.

Operational Challenges

  • AT&T reports roughly 2,000 outages this year due to copper thefts.
  • The company faces difficulties sourcing replacement parts for the legacy network.

Regulatory Context

  • The federal government and virtually all states where AT&T historically offered copper‑wire service have eliminated outdated regulatory obstacles, allowing the company to begin powering down its old network and increase investments in modern communication technologies.

Source: Reuters (quoted by an anonymous reader).

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