California regulators have asked a court and the Federal Communications Commission to reject AT&T Inc‘s (NYSE:T) request to stop offering traditional copper-wire phone service to new customers, according to a Reuters report on Thursday.

California Pushes Back Against AT&T Plan

California Public Utilities Commission (CPCU) said AT&T was attempting to avoid its obligations as a carrier of last resort and ensure access to basic telephone service, according to the report.

The CPUC, in a court filing, added that California’s service requirements are technology-neutral and do not mandate the use of copper-wire networks.

According to the state agency, providers can use wireless, Voice over Internet Protocol or other technologies, provided they continue to meet the state’s standards for basic service, the report added.

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AT&T Seeks To Retire Legacy Network

In May, AT&T had asked the FCC for permission to discontinue traditional phone service in parts of California where alternative services were available.

According to AT&T, California’s rules require it to spend about $1 billion annually maintaining a legacy network that now serves roughly 3% of households in its California territory, Reuters added.

The dispute comes as AT&T is accelerating its shift from legacy copper infrastructure to fiber and wireless networks, including a $19 billion investment plan in California through 2030.

Nearly 200,000 Customers Could Be Affected

AT&T plans to discontinue copper-based residential and business phone service across portions of 360 wire centers in California beginning in June 2027.

The company estimates the move would affect about 184,000 residential customers and 15,000 business customers.

The CPCU said AT&T had not provided enough evidence that replacement services would be available to all affected customers, the report added.

AT&T did not immediately respond to Benzinga’s request for comment on the development.

Price Action: AT&T shares fell 1.92% to close at $22.01 on Thursday and recovered some ground in after-hours trading, rising 0.23%.

Benzinga Edge Rankings indicate AT&T has a Momentum score in the 11th percentile and a Quality score in the 80th percentile.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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