AT&T sues California in attempt to shut off old phone network

In a striking move, AT&T has filed a lawsuit against California, challenging the state's decision to prevent the telecom giant from discontinuing its outdated wireline phone services. The company is urging the Federal Communications Commission (FCC) to intervene, asserting that California lacks the authority to enforce its regulations that require AT&T to maintain service for approximately 199,000 customers. AT&T's complaint highlights the financial burden imposed by the state, claiming that it is obligated to invest $1 billion annually to uphold a telephone network that has become largely obsolete. According to the lawsuit, the traditional copper wires, once a staple of home communication, now only serve a mere three percent of households in AT&T's California territory. The company argues that consumers are increasingly turning to more affordable and efficient broadband services, leaving the old network behind. In June 2024, California's Public Utilities Commission (CPUC) denied AT&T's appeal to eliminate the Carrier of Last Resort (COLR) obligations, which mandate that the company provide landline service to interested customers. AT&T has successfully secured relief from these obligations in 20 out of 21 states where it operates wireline services, with California being the only exception. AT&T's lawsuit underscores the growing frustration with California's regulatory stance, stating that the outdated copper infrastructure poses security risks, citing nearly 2,000 incidents of copper thefts this year alone. The company contends that maintaining this network is not only inefficient but also a drain on the power grid, consuming over 100 million kilowatt-hours annually. While AT&T has long argued that California is hindering its ability to transition to modern technologies, state officials maintain that the company is permitted to upgrade its infrastructure to enhance service quality.