AT&T recently announced plans to phase out its aging copper phone and DSL lines by 2029. This move is part of the company’s broader effort to modernize its network infrastructure, focusing on wireless and fiber solutions. However, the shift raises concerns for millions of rural customers who will be left with fewer options for reliable phone and internet services.
Dividing the Network into Two Strategies
AT&T is implementing a two-pronged approach for its expansive 500,000-square-mile wireline territory. Half of this area, which houses only 10% of AT&T’s customer base, will adopt a “wireless first” strategy, focusing on 5G and satellite services instead of fiber. For the more densely populated regions, AT&T will prioritize fiber deployment to deliver high-speed internet.
In rural “wireless first” areas, the company has determined that building fiber is not financially viable due to the low population density. These areas, with an average of just four customers per square mile, will rely heavily on wireless solutions like 5G, leaving some customers to rely on satellite internet, which has historically faced reliability challenges.
Regulatory Support for the Transition
The company’s ability to move forward with this plan depends on regulatory changes at both the state and federal levels. AT&T has already succeeded in deregulating services in 20 of the 21 states it operates in, allowing it to phase out old copper lines. California remains an exception, as the state’s Public Utilities Commission rejected AT&T’s request to end its landline obligations, citing concerns about the reliability of wireless alternatives.
AT&T is optimistic that a new, Republican-majority Federal Communications Commission (FCC) will provide the necessary support to push forward with its plan. The company is working closely with federal and state policymakers to ensure the smooth transition from copper to newer technologies.
Challenges for Rural and Legacy Customers
AT&T’s plan to retire copper lines by 2027 in “wireless first” areas and by 2029 in “fiber first” areas will impact a significant number of rural and legacy customers. While many users will switch to 5G or fiber, others may have to rely on satellite, a service that often suffers from lower speeds and reliability compared to fiber or wireless broadband.
The company reassured customers that they will not lose access to essential services like phone and 911 throughout the transition. However, critics worry that rural customers could experience interruptions and limited choices for reliable alternatives.
California’s Unique Situation
California’s opposition to deregulation is a significant roadblock for AT&T. The state’s PUC rejected the company’s request to end its landline obligations, citing concerns that alternatives like VoIP and mobile services are not sufficient for emergency use. Despite this, AT&T continues to work with California lawmakers to find a path forward and is committed to modernizing its infrastructure across the state.
Elsewhere, the company has made significant progress, already halting new copper service orders in 60 wire centers across 13 states. This is seen as a major step toward completing the transition in the coming years.
Cost Considerations and Operational Shifts
The legacy copper network is expensive to maintain, with AT&T spending approximately $6 billion annually on upkeep. The infrastructure is also increasingly vulnerable to damage from storms, flooding, and copper theft, further justifying the move to modernize. By selling off decommissioned copper and leasing unused central offices, AT&T aims to optimize its operations and improve profitability.
AT&T plans to extend its fiber footprint significantly by 2029, from 29 million to 45 million locations, with additional coverage through partnerships like its joint venture with BlackRock. While fiber will become the primary offering in more populated regions, some customers will still rely on wireless services as a backup. The company is also promoting wireless solutions like AT&T Internet Air as a faster alternative to older DSL services.
