California challenges AT&T bid to retire copper phone lines
State regulators told the FCC that AT&T has mischaracterized California rules and has not proved wireless service can replace landlines.
By Hana Yoshida · Markets Reporter
4 min read
California regulators are urging the Federal Communications Commission to reject AT&T’s attempt to end copper-line phone service for about 199,000 customers. In a June 15 filing, the state and the California Public Utilities Commission said AT&T has wrongly claimed California blocks carriers from replacing copper networks with fiber.
The dispute matters because AT&T wants federal approval to stop offering traditional wireline service in parts of California where it says the old network is costly and lightly used. California says the company has not shown that its proposed wireless alternatives would provide an adequate replacement for residents and businesses that still rely on landline service.
AT&T has asked the FCC to declare that California cannot enforce rules requiring the company to serve any potential customer in its wireline territory. The company also sued California last month, seeking to preempt the state’s Carrier of Last Resort requirements, which require landline telephone service to be available across a carrier’s service area.
In its lawsuit, AT&T alleged that California requires it to spend $1 billion a year maintaining what it called a century-old telephone network that almost no one uses. AT&T has also told the FCC that California rules leave aging copper lines “frozen in time” and require the company to continue offering Plain Old Telephone Service throughout its territory.
California disputed that account in its FCC filing. The state said the CPUC declined in 2008 to adopt rules that would have stopped phone companies from replacing copper lines with fiber, concluding that such restrictions would slow fiber deployment in California.
According to California regulators, AT&T is free to upgrade copper facilities to better technologies, including fiber. The state said the issue is AT&T’s plan to rely mainly on wireless service in areas where the company chooses not to build fiber.
Wireless coverage at issue
California told the FCC that AT&T’s applications depend largely on AT&T Phone-Advanced, a VoIP service that uses the company’s LTE network. The state said AT&T has not proved that indoor mobile voice coverage in affected areas is strong enough to replace wired residential and business service.
AT&T has pointed to federal coverage maps, but California said the FCC’s National Broadband Map shows broadband coverage rather than voice service. The state also said the FCC’s Mobile LTE Coverage Map describes outdoor, stationary coverage and does not show where service is available indoors.
California cited AT&T’s own coverage-map disclaimer, which says the map shows approximate outdoor coverage, that actual coverage may vary and that coverage is not guaranteed. The state said buildings, walls and other obstructions mean mobile maps cannot establish that wireless service is equivalent to a wireline connection without further evidence of indoor coverage.
Cost, outages and 911 concerns
California also raised concerns about price, backup power, assistive technology and emergency calling. The state told the FCC that availability alone does not make a service equivalent if customers face higher costs, need extra equipment or broadband service, lose service during power failures without backup power, or receive less reliable 911 functionality.
The state said AT&T Phone-Advanced could cost more than California’s Basic Service in areas with weak cellular signals because customers might need a separate internet plan, if one is available. California also said AT&T’s applications do not make clear whether the service supports California Lifeline discounts or the California Relay Service for deaf and hard-of-hearing users.
AT&T has said it has received relief from Carrier of Last Resort obligations in 20 of the 21 states where it operates wireline service. The CPUC rejected AT&T’s California request in 2024 and urged the company to upgrade copper lines to fiber instead of shutting down outdated portions of its network.
California asked the FCC to reject AT&T’s applications. If the agency does not do that, the state said the FCC should remove the applications from a streamlined process that could allow faster approval and require AT&T to address the state’s concerns.
This story draws on original reporting from Ars Technica.