- AT&T claims that only 3% of current California households still use copper landline
- The communications giant estimates the maintenance cost of such a service at approximately $1 billion
- California is one of 21 states currently opposing AT&T’s withdrawal of copper landline phones, setting up a potential future state-versus-federal legal battle over authority
AT&T has filed a lawsuit against the state of California asking the FCC to overturn state-sanctioned rules requiring it to offer services as a Carrier of Last Resort (COLR) in the US District Court for the Southern District of California.
The lawsuit names both the California Public Utilities Commission (CPUC) and the attorney general as defendants, although it asks the FCC for permission to cut off traditional phone service in areas where there are better service options.
The telecom provider is also seeking relief from state rules that it claims are superseded by federal rules.
A complex problem, driven by profitability, reliability and ecological considerations
AT&T has pointed out that the copper-based infrastructure in its current form not only costs over $1 billion to maintain while serving only 3% of its user base, but it is also prone to theft, 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 preventing AT&T from phasing out its copper-based service entirely, even though it claims that as many as 80% of adults nationwide use wireless phone service as their only medium for calling, with most of those who don’t utilizing IP-based phone service instead.
AT&T’s multi-pronged attack 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, the equivalent of eliminating emissions from 17 million gallons of gasoline.
No fiber-for-all plans yet, as AT&T looks to wireless to bridge part 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 considers 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 spend enormous sums to keep POTS alive. Because it does not make sense to maintain a ubiquitous, expensive 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 position on this is also clear: It states that it has no specific rules regarding the retirement of copper facilities, but 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 AT&T says the FFC calls “grandfathering,” which allowed it to stop accepting new customers for the service, there are still a significant amount of other affected customers; AT&T’s filings with the FCC indicate it is seeking permission to cut service to 184,000 residential customers 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 that AT&T is committed to providing reliable coverage throughout the state, particularly to rural or marginalized communities, which are expected to bear the brunt of such a move.
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