AT&T Sues California to Halt Traditional Phone Service

• AT&T sued the California Public Utilities Commission and state attorney general, also filing petitions with the FCC to declare California's maintenance requirements preempted by federal standards
• The company claims transitioning from copper will save 300 million kilowatt-hours annually by 2030 and address ongoing issues including 2,000 outages from copper thefts this year
• AT&T states that virtually all other states where it offered copper-wire service have eliminated regulatory obstacles allowing the phase-out of old networks

AT&T Sues California Over Legacy Phone Service Requirements

Key Development: AT&T filed a lawsuit on May 20 against California officials, including the California Public Utilities Commission (CPUC) and state attorney general, seeking to halt mandatory traditional copper-wire phone service to new customers.

Core Dispute: California currently requires AT&T to spend $1 billion annually maintaining century-old copper telephone infrastructure that now serves just 3% of households in AT&T's California territory. The company argues this outdated network is costly and inefficient compared to modern alternatives.

Financial Commitment: In exchange for phasing out legacy service, AT&T pledged to invest $19 billion in modern telecommunications infrastructure in California, aiming to connect over 4 million additional households and businesses by 2030.

Regulatory Actions: AT&T simultaneously filed petitions with the Federal Communications Commission (FCC) requesting:

• Permission to discontinue traditional phone service in areas with superior alternatives
• Declaration that California's maintenance requirements are preempted by federal standards

Supporting Arguments: The company cited multiple benefits of transitioning away from copper:

• Energy savings of 300 million kilowatt-hours annually by 2030 (equivalent to eliminating emissions from 17 million gallons of gasoline)
• Approximately 2,000 outages from copper theft reported in California this year
• Difficulty sourcing replacement parts for obsolete equipment
• IP-based networks offer greater reliability and efficiency

Broader Context: AT&T noted that the federal government and virtually all other states where it historically provided copper-wire service have eliminated regulatory obstacles, allowing modernization of telecommunications infrastructure. The lawsuit was filed in U.S. District Court in southern California.