AT&T sues California in attempt to shut off old phone network
Summary
AT&T is suing the state of California because the state won’t allow the company to stop providing old-style landline phone service to all potential customers. AT&T wants permission to replace its outdated copper phone network, used by a small number of people, with modern fiber and wireless technology.Key Facts
- AT&T filed a lawsuit against California for blocking its plan to end landline phone service to about 199,000 customers.
- California requires AT&T to maintain its old copper phone network, even though only 3% of households use it.
- AT&T argues that maintaining the copper network costs about $1 billion a year and is inefficient.
- The California Public Utilities Commission (CPUC) denied AT&T’s request to stop being the Carrier of Last Resort (required to serve everyone).
- CPUC says AT&T can still upgrade to fiber or other technologies and retire copper lines if they want.
- AT&T plans to prioritize fiber internet in densely populated areas but wants to replace copper with wireless options in less populated areas.
- AT&T claims copper networks are vulnerable to theft and use a lot of electricity.
- AT&T asked the Federal Communications Commission (FCC) to override California’s rules and allow the company to shut down the old network.
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