Carrier of Last Resort

AT&T is seeking to retire copper phone line infrastructure in California and invest $19 billion in fiber expansion, but faces a lawsuit challenging state rules requiring it to maintain traditional phone service. Critics warn the transition could leave vulnerable populations including rural residents, elderly, and those with medical equipment dependent on phone lines without adequate safeguards.

AT&T filed a lawsuit against California and petitioned the FCC, seeking relief from its Carrier of Last Resort obligation that requires the company to provide landline service to all potential customers in its territory. The company claims it spends $1 billion annually maintaining a century-old copper network that serves only 3% of households, while customers have migrated to modern broadband services. AT&T has already secured relief from this obligation in 20 of its 21 service states, with California being the only holdout after the California Public Utilities Commission rejected its request in June 2024.