Federal judge denies AT&T injunction in California phone service dispute
US District Judge Linda Lopez rejects AT&T’s claim that federal orders preempt state mandates, allowing California to enforce requirements for basic voice service via fibre or wireless alternatives.
A US federal judge has denied AT&T’s request for a preliminary injunction to halt California’s Carrier of Last Resort (COLR) rules, a significant setback for the telecommunications provider’s bid to discontinue legacy copper-wire services. The ruling by US District Judge Linda Lopez in the Southern District of California permits the state to continue enforcing regulations that require AT&T to offer basic phone service to new customers within its wireline territory.
AT&T had sought to end these obligations for 184,000 residential and 15,000 business customers by June 2027, arguing that Federal Communications Commission (FCC) orders regarding network modernisation preempt state mandates. The carrier claimed that California requires it to spend approximately $1 billion annually to maintain a century-old network that sees minimal usage. However, Judge Lopez determined that AT&T had not demonstrated a likelihood of success on the merits of its preemption claim, a necessary threshold for granting an injunction.
California officials and the California Public Utilities Commission (CPUC) opposed the motion, contending that the state’s COLR rules are technology-neutral. They argued that the rules do not conflict with the FCC’s Network Modernization Order because they do not compel AT&T to continue offering copper-wire Plain Old Telephone Service (POTS) to new customers. Instead, the state maintains that AT&T can satisfy its obligations by providing service via fibre or wireless alternatives.
State Attorney General Rob Bonta and the CPUC described AT&T’s lawsuit as a “facade,” asserting that the carrier is using an “analog versus digital” narrative to mask its true objective: a complete release from COLR obligations. The state noted that AT&T already offers basic service over fibre connections in some locations and has never formally sought to substitute POTS with its mobile-based AT&T Phone-Advanced (AP-A) service. California emphasised that state requirements include flat-rate unlimited voice options, Lifeline discounts for low-income customers, and relay services for the deaf and hard of hearing, which AT&T has not confirmed its wireless alternative would meet.
The Utility Reform Network, an advocacy group, supported the state’s position by highlighting the unsuitability of wireless replacements in California’s diverse topography. The group warned that residents in mountainous or heavily forested areas may lack reliable cellular signals and that AP-A’s 24-hour backup battery is inadequate compared to legacy infrastructure, particularly during prolonged power outages caused by wildfires and earthquakes.
AT&T has secured relief from COLR obligations in 20 of its 21 wireline service states, with California being the sole exception. While the FCC has automatically granted AT&T’s petitions to discontinue copper-based service following a comment period, it has not yet acted on the request to preempt California’s specific rules. AT&T retains the right to appeal the injunction denial to the 9th Circuit Court of Appeals and continues to argue that it faces irreparable harm to its business interests without immediate relief. Pending further legal action, AT&T remains obligated to provide basic phone service to potential new customers under current state orders.
