WASHINGTON, May 20 - AT&T filed suit in U.S. District Court in southern California on Wednesday against the California Public Utilities Commission and the state attorney general, asking a judge to declare that the company need not continue providing traditional copper-wire telephone service to new customers as it shifts investment toward modern communications infrastructure.
The carrier said California regulators currently require it to spend about $1 billion a year to maintain the aging copper network, which AT&T says now serves only 3% of households within its California territory. In its court filing, AT&T pointed to the high upkeep costs and declining use of the century-old system as drivers of its request to end obligations to offer the legacy service to new customers.
As part of the same regulatory push, AT&T told the Federal Communications Commission on Wednesday that it seeks permission to discontinue traditional phone service in parts of California where the company already provides faster, more reliable IP-based service. The company also filed a petition asking the FCC to declare that state rules effectively requiring AT&T to power, repair and sell traditional phone service - even after the FCC authorizes a phase-out - are preempted by federal standards.
AT&T said it plans to invest $19 billion in California as it moves to expand modern network access, aiming to connect more than 4 million additional households and businesses across the state by 2030. The company characterized IP-based networks as more efficient and reliable than the legacy copper system.
In the lawsuit, AT&T estimated that transitioning from copper to newer network technologies would save roughly 300 million kilowatt-hours annually by 2030, an energy savings the company equated to eliminating emissions associated with 17 million gallons of gasoline. The filing also cited operational problems tied to the copper network, saying California has experienced about 2,000 outages this year due to copper thefts and that the company struggles to source replacement parts.
AT&T said the federal government and virtually all states where it historically operated copper-wire networks have "eliminated outdated regulatory obstacles" that permit the carrier to power down its old network and redirect investment toward modern communications technologies. The company urged the court to affirm that California cannot impose requirements that would force it to continue operating and selling the legacy service where federal approval to retire it has been granted.
The California Public Utilities Commission did not immediately respond to a request for comment.
Context and next steps
AT&T is pursuing parallel tracks: litigation in federal court to relieve state-level obligations and petitions with the FCC to obtain federal authorization to discontinue legacy service and preempt state rules. The company has linked its planned $19 billion investment to an expansion of faster, IP-based service across California while highlighting energy savings and operational issues tied to the copper network.