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No more landlines? In a sign of the times, AT&T is preparing to retire its old-school copper networks across the country by the end of the decade.
AT&T mentioned the plan during Tuesday’s investors' day as it prioritizes expanding more modern and far-faster fiber networks. “While building the network of the future, the company is actively working to exit its legacy copper network operations across the large majority of its wireline footprint by the end of 2029,” AT&T says.
In an investor presentation, an AT&T executive noted that “customers are voting with their feet and moving off of this 70-year-old copper service,” citing the higher satisfaction—and speeds— from fiber and wireless connectivity.
(Credit: AT&T)“In fact, only 5% of our residential customers are still using copper voice technology,” says AT&T EVP Susan Johnson. Phasing out copper-based phone networks also promises to reduce the company’s maintenance costs by about 35% while reducing its electricity use.
“The copper network is very inefficient,” she adds. “We are seeing declining reliability with storms and increased copper theft. Copper simply does not do well with water and flooding. And repairs are very labor-intensive. And unlike fiber, copper is an energy hog.”
However, AT&T cautioned that retiring the copper networks is dependent on "regulatory and contractual obligation.” USA Today reports that the company’s landline business currently operates in 21 states, and by 2029, it expects the copper networks to be eliminated everywhere except California, where regulators have been fighting to keep the landline business alive.
In California, a key concern is that getting rid of landlines will hurt rural residents, who often struggle to access high-speed fiber or reliable cell signals. It’s why the local California Public Utilities Commission rejected AT&T’s request in June to end the landline service in the state, despite the carrier saying it was too costly to maintain.
In her presentation, AT&T's Johnson noted that the company plans to migrate users to wireless services, including satellite connectivity, to compensate for the loss of landlines. "We've made a pledge that we're going to keep our customers connected through the process and make sure that no customer loses access to voice or 911 services."