AT&T has initiated legal action against the state of California, challenging its obligation to maintain an outdated landline telephone network. The telecommunications giant filed the lawsuit in the U.S. District Court for the Southern District of California, seeking relief from the state's Carrier of Last Resort (COLR) mandate, which requires AT&T to provide service to all potential customers within its wireline territory.
The company argues that maintaining the aging network costs approximately $1 billion annually, despite serving only 3% of households in its California service area. AT&T claims that consumers are increasingly opting for modern broadband services, which are more affordable, reliable, and energy-efficient. "The copper wires that once served every home now serve just three percent of households in AT&T’s California territory, with consumers fleeing every day to modern broadband services," the company stated in its lawsuit.
California’s Stand Against AT&T’s Request
Earlier this year, the California Public Utilities Commission (CPUC) rejected AT&T’s petition to eliminate the COLR obligation, citing concerns about access to reliable communication services for rural and elderly populations. AT&T, however, has successfully secured relief from similar obligations in 20 other states, making California the lone holdout.
"California requires AT&T to spend $1 billion each year to maintain a century-old telephone network that almost no one uses."
The case highlights the tension between technological advancement and regulatory mandates designed to ensure universal access to essential services. AT&T’s push underscores the broader industry shift away from traditional copper-based infrastructure toward digital and wireless alternatives.
The FCC’s involvement in the matter could set a precedent for how states balance corporate efficiency with public service obligations. The outcome of the lawsuit will likely have significant implications for California’s telecommunications landscape.