AT&T loses key ruling in bid to stop offering basic phone service in California

A federal judge denied AT&T’s request for a preliminary injunction, allowing California to enforce rules requiring the company to offer basic phone service to new customers. AT&T sought to end these obligations, known as Carrier of Last Resort (COLR) rules, citing high costs and conflicts with federal regulations, but California argued its rules are technology-neutral and AT&T is trying to abandon its duties. The case continues, with AT&T potentially appealing the ruling and pursuing separate actions with the FCC.

• A federal judge denied AT&T’s request for an injunction to halt California’s Carrier of Last Resort (COLR) rules.
• AT&T wants to stop offering basic phone service to new customers and discontinue service for approximately 184,000 residential and 15,000 business customers by June 1, 2027.
• AT&T claims California’s rules conflict with a Federal Communications Commission (FCC) order and cost $1 billion annually to maintain an outdated network.
• California argues its rules are technology-neutral, allowing service via copper, fiber, or wireless, and that AT&T seeks to be released from COLR obligations entirely.
• The state also contends that AT&T has not formally sought to substitute its copper-based service with alternatives like AT&T Phone-Advanced (AP-A) as required by state regulations.
  Continue reading https://arstechnica.com/tech-policy/2026/07/att-loses-key-ruling-in-bid-to-stop-offering-basic-phone-service-in-california/