AT&T Loses Bid to End California Basic Phone Service Mandate

AT&T's attempt to cease offering basic phone service to new customers in California has been thwarted by a federal judge's ruling last week. US District Judge Linda Lopez denied AT&T's request for a preliminary injunction, which would have paused the state's Carrier of Last Resort (COLR) rules while the broader litigation proceeds. AT&T had sued the state in May, seeking to invalidate these COLR regulations that mandate the company provide telephone service to any potential customer within its wireline territory.

The legal battle centers on AT&T's claim that California's COLR rules are preempted by an order from the Federal Communications Commission (FCC). To secure the preliminary injunction, AT&T needed to demonstrate a strong likelihood of success on the merits of this preemption argument. Judge Lopez's decision, made during a motion hearing on Thursday, indicates that AT&T did not meet this threshold.

The case is being heard in the US District Court for the Southern District of California. The COLR rules are a long-standing requirement designed to ensure universal access to basic telephone service, particularly in areas where market incentives might otherwise lead to service discontinuation. AT&T's lawsuit aimed to free itself from this obligation, arguing it was outdated and interfered with its business strategy.

This ruling allows California to continue enforcing its mandate that AT&T maintain the offering of basic wireline telephone service. The denial of the preliminary injunction means the state can enforce these rules without interruption while the court further considers the merits of AT&T's preemption claim. The future of the COLR rules in California remains subject to the ongoing litigation.