AT&T Sues California Over Mandate to Maintain ‘Century-Old’ Copper Network
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A Billion-Dollar Legacy Problem
AT&T has taken the drastic step of suing the state of California, alleging that the government is forcing the telecommunications giant to maintain an obsolete copper-wire phone network that has become a financial and operational liability. In a lawsuit filed in the U.S. District Court for the Southern District of California, the carrier argues it is being compelled to spend approximately $1 billion annually to sustain a system that the vast majority of consumers have abandoned.
The core of the dispute centers on the “Carrier of Last Resort” (COLR) obligation. This regulatory mandate requires AT&T to provide basic landline telephone service to any potential customer within its service territory, regardless of profitability. According to AT&T, the copper wires that once formed the backbone of American communication now serve only three percent of households in its California territory, as users migrate toward fiber and mobile broadband.
The Regulatory Standoff
The legal battle follows a June 2024 decision by the California Public Utilities Commission (CPUC), which rejected AT&T’s request to be released from its COLR duties. While AT&T claims it has successfully secured relief from similar obligations in 20 of the 21 states where it operates wireline services, California remains the final holdout.
Beyond the balance sheet, AT&T is highlighting the physical vulnerability of the aging infrastructure. The company notes that the copper network has become a prime target for theft, citing roughly 2,000 outages in California this year caused by criminals stealing copper wiring. Additionally, the carrier argues that the network is an environmental drain, consuming over 100 million kilowatt-hours of electricity annually to keep the lights on for a dwindling user base.
Technology Neutrality vs. Strategic Deployment
California officials, however, maintain that the issue isn’t about the medium, but the service. In its previous ruling, the CPUC asserted that its rules are “technology-neutral.” The commission argues that AT&T is not being forbidden from retiring copper lines, provided they are replaced by an equivalent service that ensures residents have access to essential communications.
The tension here lies in how AT&T wants to replace that service. While the company is expanding fiber in high-density, high-profit urban areas, it has adopted a “wireless first” strategy for about half of its wireline territory. In these regions, AT&T intends to replace landlines with wireless alternatives or VoIP services like AT&T Phone-Advanced. The CPUC has pushed back on this, citing public concern over the reliability of wireless and VoIP options compared to traditional hardwired lines, especially during emergencies or power outages.
Seeking Federal Intervention
AT&T is not relying solely on the courts. The company has simultaneously petitioned the Federal Communications Commission (FCC) to intervene, seeking permission to discontinue copper-based services for approximately 184,000 residential customers and 15,000 business customers.
The carrier is leaning on a March 2026 order from the FCC, which aimed to simplify the process for carriers to phase out legacy copper networks. AT&T argues that federal authority should preempt state regulations, specifically the COLR rules, which it claims are unlawful obstacles to modernization.
The company is also seeking to distance itself from the California Lifeline discount program. With only about 40,000 subscribers remaining in the program—following a 2016 FCC order that limited new sign-ups in most counties—AT&T views the mandate as another relic of a bygone era of telephony.
