California lawmakers are advancing a controversial proposal that could mark the beginning of the end for most traditional landline phone service in the state.
Assembly Bill 470, backed by AT&T, cleared the Assembly in June and is now under review by the state Senate Appropriations Committee. The legislation seeks to eliminate the company’s “carrier of last resort” obligation, which currently requires it to provide copper-wire landline service to anyone who requests it.
AT&T argues that landlines are no longer widely used, with only about 5% of Californians — primarily older residents — relying on them. The company says its obligations cost $1 billion annually, despite reporting $12.3 billion in profit last year. “No customer will be left without access to voice or 911 service,” said Susan Santana, AT&T’s California president, promising a phased, multi-year transition to newer technologies.
Supporters of the bill, including Assembly Member Tina McKinnor (D-Inglewood), the bill’s author, contend that the measure will accelerate the replacement of outdated copper wiring with modern fiber-optic networks. Half of AT&T’s required investment would be directed toward underserved areas, aiming to expand broadband access.
The proposal would allow AT&T to phase out landline service only in areas deemed “well served,” defined as regions with at least three alternative providers — typically two cellular carriers and one cable company — including one offering discounted Lifeline plans for low-income households.
Critics, however, warn that the bill could leave hundreds of thousands without a reliable communication lifeline, especially during emergencies when internet and cellular networks may fail. Consumer advocates argue the measure sidesteps the California Public Utilities Commission (CPUC), which unanimously rejected AT&T’s previous attempt to abandon landline obligations in 2024.
“There is no way the commission has the resources to verify throughout the entire state where there are verified alternative services,” said Regina Costa of The Utility Reform Network, a San Francisco-based advocacy group.
Business groups and some local officials, such as San Jose Mayor Matt Mahan, support the bill, which received votes from a dozen Bay Area Assembly members. Still, opponents caution that federal broadband maps used to determine “well served” areas often overstate coverage, potentially leaving households with no viable options.
If passed, the CPUC would be tasked with finalizing maps of well-served areas by December 15, 2026. The Senate Appropriations Committee is expected to take up AB 470 in the coming weeks.
