AT&T sued California yesterday over the state's refusal to let the carrier stop providing phone service to all potential customers in its wireline network territory. AT&T is also asking the Federal Communications Commission to declare that California cannot enforce its rules and to let AT&T stop providing service to about 199,000 phone customers.
"California requires AT&T to spend $1 billion each year to maintain a century-old telephone network that almost no one uses," AT&T said in a lawsuit filed in US District Court for the Southern District of California. "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 that are more affordable, reliable, and energy-efficient."
In June 2024, the California Public Utilities Commission (CPUC) rejected AT&T’s request to eliminate the Carrier of Last Resort (COLR) obligation that requires it to provide landline telephone service to any potential customer in its service territory. AT&T has said it's received relief from COLR obligations in 20 of the 21 states in its wireline service territory, all except California.