AT&T is still on the hook for offering landline service in California
What is the Carrier of Last Resort (COLR) obligation?

The Carrier of Last Resort (COLR) obligation is a designation that requires a telecommunications service provider to offer basic telephone service, commonly landline, to any customer requesting it within a specified area4. The COLR obligation ensures that everyone in California has access to safe, reliable, and affordable telephone service3. AT&T is the largest COLR in California, and its request to be relieved of this obligation has been rejected by the California Public Utilities Commission.
What reasons did CPUC give for rejecting AT&T's request?

The California Public Utilities Commission (CPUC) rejected AT&T's request to end its landline phone obligations, stating that AT&T failed to demonstrate the availability of replacement providers willing and able to serve as Carrier of Last Resort (COLR). The decision also cited public commenters who highlighted the unreliability of voice alternatives such as mobile wireless or VoIP.
Why did AT&T request to be released from its COLR duties?

AT&T requested to be released from its COLR duties in California, citing the wide availability of mobile service and VoIP as reasons3. The company argued that the "economic justification" for COLR no longer exists due to alternative voice services with reasonable rates and superior technologies being available throughout the state.