AT&T Takes Legal Action Against California
- AT&T sues California to terminate its old phone network service
- The carrier seeks relief from costly maintenance obligations
- California's CPUC previously denied AT&T's request to exit the market
AT&T has initiated a lawsuit against California over the state's refusal to allow the company to discontinue providing services within its wireline network territory. The telecommunications giant is also appealing to the Federal Communications Commission to assert that California's rules are unenforceable, potentially impacting around 199,000 customers.
According to AT&T, California mandates an annual expenditure of $1 billion to maintain a dwindling century-old telephone network, which now only serves about three percent of households. Consumers are increasingly opting for modern broadband services that offer better reliability and cost-effectiveness.
The California Public Utilities Commission (CPUC) rejected AT&T's plea in June 2024 to lift its Carrier of Last Resort (COLR) obligations, a requirement allowing any customer the right to obtain landline service within the area.