AT&T loses bid to stop mandatory basic phone service in California

Ruling on California's COLR Rules

A federal judge ruled that California can enforce regulations requiring AT&T to provide basic phone service, known as Carrier of Last Resort (COLR) rules. This ruling emerged from a lawsuit AT&T filed in May, which sought to end these mandates, arguing they are preempted by a Federal Communications Commission (FCC) order.

AT&T's Plans for Service Discontinuation

AT&T has plans to cease offering basic phone service to new customers and to discontinue service for approximately 184,000 residential and 15,000 business customers by June 1, 2027. The federal judge's denial of AT&T's injunction request means the company must comply with California's rules while legal challenges are ongoing.

Potential for Appeal and Future Actions

AT&T may appeal the decision to the 9th Circuit Court of Appeals. Currently, the company is under obligation to continue offering services to potential customers despite having received relief from similar obligations in 20 other states.

Financial Aspects of the Ruling

AT&T has claimed that maintaining the outdated telephone network costs approximately $1 billion per year. The company has expressed intent to discontinue the support of copper lines for Plain Old Telephone Service (POTS) but has not made commitments to upgrade those lines to fiber, potentially forcing customers in low-profit areas to rely on cellular service.