AT&T filed a federal lawsuit against California regulators to overturn rules requiring the maintenance of traditional copper landlines. The company argues that maintaining this legacy network costs $1 billion annually. These copper lines currently serve only 3% of households within AT&T's California territory.
AT&T contends the state mandate conflicts with federal FCC rules regarding infrastructure retirement. The company simultaneously committed to investing $19 billion in California infrastructure through 2030. This investment aims to connect 4 million additional homes and businesses to fiber and wireless networks. The legal challenge underscores the high capital costs of transitioning from legacy systems to modern high-speed connectivity.