Why AT&T’s (T) California Copper Fight Matters for Legacy Network Cost Control

AT&T Inc. (NYSE:T) is one of the Best Telecom Services Stocks to Buy According to Analysts. The stock’s average analyst price target implies 46.94% upside, and the consensus rating is Buy. Among the most important developments recently, Reuters reported on June 18 that California regulators asked a U.S. court and the Federal Communications Commission to reject AT&T’s request to stop offering traditional copper-based landline service to new customers in parts of the state.

The dispute centers on AT&T’s carrier-of-last-resort obligations in California, where the company says the legacy copper network costs about $1 billion a year while serving only 3% of its customers in the state. Reuters said AT&T’s request covers 360 wire centers, including about 184,000 residential and 15,000 business customers. This is not a growth catalyst, but it is an important regulatory and cost-control issue for a large telecom operator with aging legacy infrastructure. The outcome could affect how much flexibility AT&T has in managing low-return legacy services.

AT&T Inc. (NYSE:T) provides wireless, fiber broadband, fixed-line, enterprise connectivity, and related telecom services in the United States.

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