California state regulators accused AT&T of lying to the Federal Communications Commission (FCC) regarding the shutdown of its copper phone network and the lack of a proper replacement. AT&T had petitioned the FCC to preempt state rules and discontinue its old copper phone network service, a move that would affect approximately 199,000 customers in California, according to theactualnews.org.

California’s Public Utilities Commission disagrees with AT&T, stating that while AT&T may upgrade copper lines to fiber optics, it cannot switch to wireless services. Regulators argue that AT&T's proposed replacement of wired phone lines with wireless service does not fully cover indoor areas or meet quality and safety needs, according to theactualnews.org.

AT&T claims that state rules force it to keep the copper lines, according to theactualnews.org. California denies that state rules force AT&T to keep the copper lines, according to theactualnews.org. The conflict highlights a disagreement over whether the carrier can transition to wireless alternatives or must maintain wired infrastructure under current state regulations.