Key facts
- A federal judge denied AT&T's request for a preliminary injunction to stop offering basic phone service in California.
- California can continue enforcing its Carrier of Last Resort (COLR) rules.
- AT&T sought to end COLR rules requiring it to offer service to any potential customer in its territory.
- AT&T plans to discontinue basic phone service for 184,000 residential and 15,000 business customers on June 1, 2027.
- AT&T alleges California's rules force it to spend $1 billion annually on an outdated network.
- California argues its rules are technology-neutral and allow for modern equivalents like fiber.
A federal judge has denied AT&T's request for a preliminary injunction that would have allowed the company to stop offering basic phone service in California while a lawsuit proceeds. US District Judge Linda Lopez ruled against AT&T, allowing California to continue enforcing its Carrier of Last Resort (COLR) rules. These rules mandate that AT&T offer telephone service to any potential customer within its wireline territory.
AT&T had sued California in May, seeking to end the COLR obligations and aiming to discontinue service for approximately 199,000 residential and business customers by June 1, 2027. The company argued that California's rules conflict with a Federal Communications Commission (FCC) order that permits carriers to phase out copper-wire service. AT&T claims it spends $1 billion annually maintaining an outdated network that is rarely used.
California officials, including Attorney General Rob Bonta and the California Public Utilities Commission (CPUC), argued that the FCC order does not conflict with state rules. They contend that the COLR rules require AT&T to offer basic service, which can be provided over modern equivalents like fiber optics, not just copper lines. State officials described AT&T's lawsuit as a "facade" to escape its COLR obligations entirely.
AT&T also has separate petitions before the FCC seeking to preempt California's specific mandates and permission to discontinue copper-based service. An advocacy group, The Utility Reform Network, has opposed AT&T's proposed wireless replacement service, arguing it is unsuitable for California's diverse topography and weather conditions, and that its backup battery is insufficient for prolonged power outages.
Without the preliminary injunction, AT&T remains obligated to offer basic phone service to new customers as the litigation continues. The company could appeal the judge's ruling and may also pursue its requests with the FCC, though California could challenge any preemptive FCC order in court.