AT&T has sued the State of California over its refusal to allow the company to cease providing phone service through its century-old copper network. The carrier is asking the Federal Communications Commission for permission to stop serving approximately 199,000 customers in California, citing the high cost of maintaining a network that serves only three percent of households.

"California requires AT&T to invest $1 billion annually in an obsolete network used by just a tiny fraction of its residents. This outdated system is not only expensive but also an easy target for criminals and a drain on electricity, with outages due to copper thefts soaring this year," said AT&T in the lawsuit.

In June 2024, California’s Public Utilities Commission rejected AT&T's request to eliminate its Carrier of Last Resort (COLR) obligations. The company has managed to secure relief from these regulations in 20 out of 21 states where it operates, except for California which stands as a barrier to modernisation.

Despite this setback, AT&T argues that the federal government and other states have already streamlined regulations to allow the transition to more advanced technologies. California's resistance is seen as an anomaly, hindering progress in communication infrastructure.

The lawsuit highlights the ongoing tension between outdated regulatory frameworks and technological advancements, with AT&T pushing for a modernisation of its service offering while grappling with state-level opposition.