AT&T Sues California to End Landline Service for 199,000 Customers

AT&T wants to be released from California’s Carrier of Last Resort (COLR) obligation, which requires it to provide phone service to any potential customer in its wireline territory. In June 2024 the California Public Utilities Commission denied AT&T’s request to end that duty. The carrier says it has already obtained relief from COLR rules in 20 of the 21 states where it operates, leaving California as the sole holdout.

The lawsuit states that AT&T seeks permission to stop providing phone service to roughly 199,000 customers in California. AT&T claims California forces it to spend $1 billion yearly to maintain an outdated telephone network that few people use. It also says its little-used copper network suffers about 2,000 theft-related outages annually and wastes over 100 million kWh of electricity each year.

If the court sides with AT&T, the carrier could begin decommissioning copper lines in California and shift investment toward broadband and fiber services. Customers reliant on landlines would need to migrate to alternative phone or internet options, potentially affecting rural and low‑income households. A ruling could also influence how other states treat universal service obligations and prompt the FCC to clarify federal preemption over state telecom rules.