A federal judge has refused AT&T’s request for a preliminary injunction to end California’s Carrier of Last Resort (COLR) regulations, which mandate the company to provide basic phone service to all new customers in its wireline regions. This decision forces AT&T to continue offering traditional phone service while legal challenges proceed.
- Judge denies AT&T’s motion to pause California’s COLR phone service rules.
- AT&T seeks to end service for nearly 200,000 customers by June 2027.
- California insists phone service continues on copper or fiber lines.
What happened
In July 2026, a federal judge declined AT&T’s request for a preliminary injunction that sought to block California from enforcing its Carrier of Last Resort obligations. These rules compel AT&T to provide basic telephone service to all new customers within its wireline territory. AT&T’s lawsuit claims that the state regulations conflict with a Federal Communications Commission order that purportedly authorizes carriers to retire legacy copper-wire phone service.
Without the injunction, AT&T is required to continue offering voice telephone service to potential customers and maintain service for existing customers throughout California at least until the underlying legal dispute is resolved. The company plans to discontinue service to 184,000 residential and 15,000 business customers by June 1, 2027, but must comply with state regulations while the court case proceeds.
Why it matters
California’s insistence on maintaining basic phone service affects AT&T’s ability to phase out aging copper infrastructure and transition customers to newer technologies like fiber or wireless solutions. The carrier argues that complying with these rules costs approximately $1 billion annually and keeps it tethered to outdated networks with declining usage. This case highlights tensions between state-level telecommunications regulations and federal policies focused on network modernization.
State regulators and the California Attorney General maintain that the FCC’s Network Modernization Order does not conflict with California’s COLR rules because the state does not require AT&T to continue using copper lines specifically, only to provide equivalent basic phone service. They argue that AT&T can meet these obligations by offering service over fiber or other modern technologies rather than copper wires.
What to watch next
AT&T could appeal the judge’s denial of the injunction to the Ninth Circuit Court of Appeals, potentially prolonging the legal battle. Meanwhile, the company continues to press for relief from California’s COLR rules, which remain in full effect pending a final court ruling. The outcome will shape how legacy copper networks are managed and how residential and business customers access basic voice services in the state.
If AT&T fails to secure permission to end COLR service obligations, it may have to maintain service on less profitable lines or transition customers to new technologies under state supervision. Stakeholders will closely monitor whether California’s regulators adapt their rules or whether federal policy evolves to more clearly define the scope of carrier obligations amid ongoing technological shifts.