Judge keeps California basic phone service rules in force for AT&T
AT&T failed to win an early court order blocking California rules that require it to offer basic phone service in its wireline territory.
By Hana Yoshida · Markets Reporter
4 min read
A federal judge rejected AT&T’s request to pause California rules that require the company to offer basic phone service to new customers in its wireline territory. The ruling keeps the state’s Carrier of Last Resort obligations in place while AT&T’s lawsuit against California continues.
U.S. District Judge Linda Lopez denied AT&T’s motion for a preliminary injunction at a Thursday hearing, according to a docket entry in the U.S. District Court for the Southern District of California. AT&T had argued that federal communications law and a Federal Communications Commission order preempt California’s requirements.
AT&T sued in May after seeking to end the state rules that require it to serve any potential customer in its designated area. To obtain a preliminary injunction, the company needed to show, among other things, that it was likely to succeed on the merits of its preemption claim.
AT&T wants relief from old network duties
AT&T has said it wants to stop offering basic phone service to new customers immediately and preserve service to existing customers during the litigation. The company also seeks to discontinue copper-based service for 184,000 residential customers and 15,000 business customers on June 1, 2027.
The carrier has said it has been released from similar Carrier of Last Resort obligations in 20 of the 21 states where it operates wireline service, with California the exception. In court filings, AT&T said California requires it to spend $1 billion a year maintaining a century-old telephone network that few customers use.
AT&T has targeted its copper Plain Old Telephone Service network, but it has not promised to replace copper lines with fiber everywhere. In areas where it does not view fiber deployment as profitable, customers could be left to use cellular-based home phone service, according to AT&T’s plans described in the case.
State says fiber can satisfy the rules
California Attorney General Rob Bonta and the California Public Utilities Commission opposed the injunction, arguing that state rules do not conflict with the FCC’s Network Modernization Order. State officials said the federal order lets carriers stop offering services provisioned over copper, while California’s rules require basic service without mandating copper lines.
The state told the court that AT&T may satisfy its duties through a modern equivalent, including fiber, and said AT&T already provides basic service over fiber in some places. California described the lawsuit as an attempt to shed Carrier of Last Resort obligations altogether rather than a dispute over copper versus newer technology.
AT&T argued that California would not allow it to use alternatives such as mobile wireless or AT&T Phone-Advanced, a service that uses AT&T’s mobile network while letting customers keep analog phones. California responded that its rules are technology-neutral and that AT&T has not formally sought to replace copper service with AT&T Phone-Advanced.
State officials also said AT&T has not promised that AT&T Phone-Advanced would meet California’s basic-service requirements. Those requirements include flat-rate unlimited voice options, Lifeline discounts for eligible low-income customers and relay service for deaf and hard-of-hearing users, according to California.
FCC petition still pending
AT&T has separately asked the FCC for an order preempting California’s Carrier of Last Resort mandates and related rules, including tariffing and Lifeline participation requirements. The FCC has not acted on that preemption request.
The Utility Reform Network, a California advocacy group, told the FCC that AT&T’s wireless home phone service is not a suitable replacement for legacy infrastructure in the state. The group cited California’s mountains, valleys, heavily forested areas and risks from wildfires and earthquakes, and said the wireless service has a 24-hour backup battery even though outages can last longer.
The FCC automatically granted AT&T’s petitions to discontinue copper-based service after a comment period, according to FCC documents. But unless AT&T wins further relief from the FCC or the courts, California’s service obligations remain in force during the case.
This story draws on original reporting from Ars Technica.