The California Public Utilities Commission (CPUC) has rejected AT&T's request to terminate its landline service in the state, a move potentially impacting millions of Californians.

This decision, handed down on Thursday, June 20, keeps AT&T bound to its obligations as a Carrier of Last Resort (COLR), a status it has held since 1996.

The ruling ensures that residents, especially those in remote areas, continue to have access to reliable telephone service (via The Verge).

Why AT&T Wants to Move Its Landline Service Out of California

Earlier this year, AT&T sought to be released from its COLR duties, citing the widespread availability of mobile and Voice over Internet Protocol (VoIP) services.

The company argued in the request that maintaining the traditional copper landline network is no longer economically justified due to the presence of alternative voice services offering reasonable rates and superior technologies.

AT&T emphasized the substantial costs incurred to maintain and operate the landline network, a burden not shared by its competitors who do not have similar obligations.

Read Also: AT&T Resolves Issue of Users' Calls Failing to Go Through to Other Carriers Over Network Issues

Why California Rejected AT&T's Move

Despite these arguments, CPUC was not convinced. The commission pointed out that AT&T failed to prove that there were sufficient replacement providers ready and able to assume the COLR role.

Public feedback also played a crucial role in the decision, with numerous commenters expressing concerns about the reliability of mobile and VoIP services.

For many Californians, particularly those in remote areas, landline service is a lifeline. It provides a dependable means of communication during emergencies, especially when power outages render mobile networks useless.

CPUC's Decision

In its ruling, CPUC noted that AT&T's arguments about the financial burden of maintaining landlines were not entirely accurate. The commission highlighted that no restrictions were preventing AT&T from upgrading its infrastructure, as long as service continuity was maintained.

The Register reports that the CPUC also pointed to AT&T's substantial investment in fiber optic technology, amounting to $150 million in the latter half of the previous year, contradicting the company's claims about financial constraints due to landline maintenance.

AT&T's request was not only denied but dismissed with prejudice, preventing the company from reapplying for a similar request for a full year. This decisive action by CPUC ensures that the telecommunications giant continues to fulfill its obligations to provide essential phone services to all Californians.

AT&T's Response

Following the decision, Marc Blakeman, President of AT&T California, reassured customers of the company's commitment to maintaining connectivity. "No customer will be left without voice and 911 services," Blakeman stated in an email to The Verge.

"We are fully committed to keeping our customers connected while we work with state leaders on policies that create a thoughtful transition that brings modern communications to all Californians."

Stay posted here at Tech Times.

Related Article: AT&T Data Breach Exposes Millions' Customer Data: Addresses, Social Security Numbers, Passcodes Compromised