AT&T loses key ruling in bid to stop offering basic phone service in California

California can keep enforcing rules that require AT&T to offer basic phone service to new customers in its wireline territory, following a federal judge's ruling last week. AT&T sued California in May in a bid to end the state's Carrier of Last Resort (COLR) rules that require it to offer telephone service to any potential customer in its territory. AT&T asked for a preliminary injunction that would prevent California from enforcing the COLR rules while the litigation continues.

To win a preliminary injunction, AT&T had to show it is likely to succeed on the merits of its claim that California rules are preempted by a Federal Communications Commission order. US District Judge Linda Lopez denied AT&T's request for a preliminary injunction during a motion hearing on Thursday, according to a docket entry . The case is in US District Court for the Southern District of California.