AT&T sues California to abandon legacy copper network, citing $1bn annual cost
The telecommunications giant seeks judicial and regulatory relief to discontinue service to 199,000 customers, claiming the copper infrastructure serves just three per cent of households while draining resources and power.
AT&T has initiated legal proceedings in the US District Court for the Southern District of California, seeking to terminate its obligation to maintain the state’s legacy copper telephone network. The carrier contends that the requirement to provide service to all potential customers within its wireline territory costs approximately $1 billion annually and currently serves only three per cent of households in its California footprint.
The lawsuit, filed alongside petitions to the Federal Communications Commission (FCC), requests that the court declare California’s regulations unlawful and grant injunctive relief to prevent state officials from enforcing rules that AT&T argues interfere with federal authorisations to phase out Plain Old Telephone Service (POTS). The carrier is simultaneously asking the FCC to preempt California’s rules and permit the discontinuation of copper-based service to approximately 199,000 customers, comprising 184,000 residential and 15,000 business lines.
AT&T asserts that California is the sole exception among the 21 states in its wireline service territory where it has received relief from Carrier of Last Resort (COLR) obligations. The company argues that the federal government and virtually all other states have eliminated what it describes as outdated regulatory obstacles, allowing carriers to power down copper networks and invest in modern communication technologies. The carrier cites significant operational burdens, including 2,000 outages caused by copper theft in California this year and an annual power drain of over 100 million kilowatt-hours.
The California Public Utilities Commission (CPUC) previously rejected AT&T’s request to eliminate these obligations in June 2024, emphasising the need to safeguard essential services. The CPUC stated that its COLR rules are technology-neutral and do not prevent AT&T from retiring copper facilities or investing in fibre or other technologies. However, the commission noted public concerns regarding the reliability of voice alternatives such as mobile wireless or VoIP, reaffirming its commitment to maintaining regulatory oversight of the telecommunications industry.
In its legal filings, AT&T proposes replacing copper lines with fibre and wireless technologies, including AT&T Phone-Advanced, a VoIP service that relies on the mobile network. The carrier argues these modern solutions are adequate replacements for POTS and cites a March 2026 FCC order under Chairman Brendan Carr, known as the Network Modernization Order, which made it easier for carriers to discontinue copper networks and asserted that state rules may be preempted if they conflict with federal authorisations. AT&T also seeks forbearance from California’s Lifeline discount program requirements, noting it currently holds about 40,000 Lifeline subscribers in the state, a figure that has decreased following a 2016 FCC order allowing carriers to stop offering Lifeline to new consumers in most counties.
