AT&T aims to hasten the retirement of its aging copper networks as it anticipates support from the forthcoming administration, targeting the completion of this transition by the end of 2029.AT&T continues to offer support for traditional copper landlines, commonly known as plain old telephone service (POTS), which currently serves about 5% of its residential subscribers. This dated service, which costs the company approximately $6 billion annually, is perceived as an increasingly burdensome asset in a modernizing communications landscape.While the outgoing Democratic leadership at the Federal Communications Commission (FCC) showed a level of understanding towards AT&T's initiative to phase out copper networks, CEO John Stankey expresses optimism that the incoming administration will provide even more favorable conditions.Despite the obsolescence of POTS, it remains a crucial service for many, particularly in emergencies during natural disasters due to its self-powered nature. This is especially true for low-income households, many of whom lack access to reliable cellular service or broadband, especially in remote areas.AT&T has launched an alternative to POTS named Phone-Advanced, designed to operate on both its mobile network and fiber infrastructure, ensuring uninterrupted access to essential voice and 911 services. This alternative also caters to traditional POTS-dependent devices, such as fax machines and alarm systems, offering similar functionalities like caller ID and call waiting. However, approval from the FCC for Phone-Advanced as an official landline replacement is still pending.The company intends to reassure its customers that Phone-Advanced will be as reliable as their familiar copper landlines. In regions lacking availability of Phone-Advanced, customers can expect satellite services to maintain their connectivity. Additionally, voice service will remain available in cases where no alternatives exist.Out of the 21 states, 20 have sanctioned the transition process as AT&T forges ahead.Stankey is confident that Brendan Carr, the President-elect Donald Trump's selection for FCC chairman, will adopt a more "market-oriented" stance regarding the shift from legacy networks. This perspective mirrors AT&T's commitment to a market-driven strategy.According to Blair Levin, a policy analyst with New Street Research, Carr is expected to focus on future needs rather than being tethered to legacy solutions, signaling a shift toward a more progressive regulatory environment that may facilitate the retirement of copper networks.
Levin also posits that Carr will provide clearer directives to staff for processing decommissioning requests and will advocate for state-level adjustments to be more accommodating to requests from Incumbent Local Exchange Carriers (ILECs) seeking to retire outdated copper infrastructure.
Blair Levin, policy analyst at New Street Research, December 2024