A California regulator has ruled against AT&T's attempt to stop offering basic wireline phone service in the state, stating that the company's proposed wireless replacement, AT&T Phone-Advanced (AP-A), does not meet state requirements. California regulators assert that AT&T is seeking to abandon its obligations entirely rather than substitute its copper-based service with a compliant alternative.

California's basic service requirements include flat-rate unlimited calls, discounted Lifeline rates for low-income customers, and relay services for the hearing impaired. The state argues that AP-A has not been formally proposed as a replacement and that AT&T's lawsuit does not state an intention to offer AP-A as a substitute.

AT&T has also petitioned the FCC for an order preempting California's mandates. However, California contends that AT&T is misrepresenting the situation, and an advocacy group, The Utility Reform Network, argues that AP-A is unsuitable for California's diverse topography and extreme weather, citing potential unreliability during power outages from wildfires and earthquakes, as AP-A has only a 24-hour backup battery. The FCC has not yet ruled on AT&T's preemption request, and California could challenge any favorable FCC decision in court.