Friday, September 26, 2025

Bill That Would Have Allowed AT&T To End Landline Service Held

By ANDRÈ COLEMAN, Managing Editor

A bill that would have allowed AT&T to end traditional landline service in Pasadena and the rest of the state has stalled.

The state’s Senate Appropriations Committee has held AB 470.

The bill would have allowed AT&T to drop its “carrier of last resort” obligation requiring it to provide copper-wire phone service to anyone who wants it.

A committee chair or the committee itself can “hold” a bill, which usually means it will not get a vote and therefore will not advance to the full chamber.

According to older Americans only 5% of Californians have landline services and most of them are senior citizens.

AT&T, which reported $12.3 billion in profit last year, says its carrier-of-last-resort duties cost $1 billion annually.

Last year, AT&T applied for a waiver that would have allowed it to stop servicing traditional landlines in California.

Older copper wire-based telephone systems lines would have been replaced with faster and more advanced technology that is not compatible with landlines.

As part of the change, U.S. service providers would have been required to offer customers an alternative to landlines and use devices to convert analog signals to digital, either through fiber optic cables or wireless technology, like LTE/5G.

Conversions would have cost customers anywhere between $200 to $400.

In an email to Pasadena Now, the utility said it was not trying to cancel landline service.

“We are not cancelling landline service in California, and none of our California customers will lose access to voice service. There’s been a dramatic, and continuing, decline in the number of customers who subscribe to our traditional landline voice service over the last two decades, and less than 7% of households we serve in California use a copper based landline. We are focused on enhancing our network with more advanced, higher speed technologies like fiber and wireless, which consumers are demanding.”

The California Public Utilities Commission later rejected AT&T’s request in June.

“Our vote to dismiss AT&T’s application made clear that we will protect customer access to basic telephone service — no matter where they live, income, or access to other forms of communication. Our rules were designed to provide that assurance, and AT&T’s application did not follow our rules,” said Commissioner John Reynolds.

After being rebuffed, the telecommunications giant pressed forward in the state legislature.

The legislation, authored by Assembly Member Tina McKinnor, D-Inglewood, would have required AT&T to invest heavily in fiber expansion, with half of that investment directed to areas with poor service.

AB 470 would have permitted the company to end landline service only in areas deemed “well served,” meaning three alternative providers — typically two cellular companies and one cable operator — are available, including one offering discounted Lifeline plans for low-income households.

Consumer advocates called the bill an “end run” around the California Public Utilities Commission.