California accuses AT&T of lying to FCC in bid to shut down old phone network

California state regulators and the California Public Utilities Commission (CPUC) have accused AT&T of lying to the Federal Communications Commission (FCC) in its attempt to shut down its aging copper phone network without providing a proper replacement.

In a June 15 filing, California said AT&T's claim that state rules block it from upgrading copper lines to fiber is false. The CPUC declined in 2008 to adopt rules that would prevent phone companies from replacing copper with fiber, as such rules would discourage fiber deployment. AT&T, however, wants to replace copper with wireless service in areas where fiber is not profitable enough, but California argues wireless is not an adequate substitute.

California pointed out that AT&T's coverage maps show only outdoor coverage, and AT&T's own website disclaims that maps depict approximate outdoor coverage. Without proof of reliable indoor voice service, wireless fails the FCC's Adequate Replacement Test. The state also raised concerns about higher costs, reliance on customer-provided backup, and reduced 911 reliability.

AT&T has already obtained relief from Carrier of Last Resort obligations in 20 states, but California rejected its request in 2024. AT&T subsequently sued California, claiming it spends $1 billion annually to maintain a network barely in use. Under FCC Chairman Brendan Carr, the agency has made it easier to discontinue copper networks. California urged the FCC to reject AT&T's applications or at least remove them from the streamlined process, and hinted at a potential lawsuit if the FCC preempts state rules.