- AT&T claims that only 3% of current households in California still use copper landlines
- The communications giant estimates the maintenance cost of such a service at approximately $1 billion
- California is one of 21 states currently opposed to AT&T’s retirement of copper landlines, setting up a potential future state-versus-federal legal battle over authority
AT&T has filed a lawsuit against the state of California, petitioning the FCC to end state-sanctioned regulations that require it to offer services as a Carrier of Last Resort (COLR) in the U.S. District Court for the Southern District of California.
The lawsuit names both the California Public Utilities Commission (CPUC) and the state attorney general as defendants, even as it asks the FCC for permission to discontinue traditional phone service in areas where better service options are available.
The telecoms provider also seeks relief from state regulations, which it contends are superseded by federal regulations.
A complex issue, driven by profitability, reliability, and ecological concerns
AT&T has pointed out that not only does the copper-based infrastructure in its current shape cost over $1 billion to maintain, while serving only 3% of its user base, but it is also prone to pilferage, especially due to rising copper prices globally, making it a relatively easy target for thieves.
It also noted that California is now the only state with regulatory roadblocks that prevent AT&T from fully phasing out its copper-based service, even as it claims that as many as 80% of adults nationwide use wireless phone service as their sole medium for calls, with most of those that do not leveraging IP-based phone services instead.
AT&T’s multi-pronged assault on California also highlighted the ecological benefits of such a move, stating that a shift away from copper could save an estimated 300 million kilowatt-hours annually by 2030, equivalent to eliminating emissions from 17 million gallons of gasoline.
No fiber-for-all plans just yet as AT&T eyes wireless to bridge a chunk of the gap
AT&T, for its part, does not want to replace all of its copper installations with fiber just yet. It aims to push a “wireless first” approach in certain areas where it deems wireless connectivity sufficient to replace existing copper-based infrastructure.
It stated in its lawsuit: “AT&T cannot invest its full resources to modernize its network while continuing to devote huge sums of money to keeping POTS alive. Because it makes no sense to maintain a ubiquitous, costly legacy network that consumers have largely abandoned, AT&T has sought to transition customers to IP-based services across its nationwide footprint.”
The CPUC’s stance on this is also clear: It states that it does not have specific rules regarding the retirement of copper facilities, but rather is willing to consider upgrades to fiber or ‘other facilities’ with a focus on reliability.
With 40,000 Lifeline subscribers left in California, thanks to a process that AT&T states the FFC calls ‘grandfathering’, which allowed it to stop accepting new customers for the service, there is still a sizeable amount of other affected customers; AT&T’s petitions to the FCC point to it requesting permission to discontinue service to 184,000 residential and 15,000 business customers in the state.
With landlines often remaining functional even during wildfires, power outages, and cell tower failures, the state of California could make the argument that its approach is technology-neutral and AT&T is required to offer reliable coverage across the state, especially to rural or marginalized communities, which are expected to bear the brunt of any such move.
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