AT&T Copper Decommissioning Might Accelerate Under TrumpAT&T Copper Decommissioning Might Accelerate Under Trump

AT&T's plan to shut down most of its U.S. copper-based services before 2030 is advancing, according to executives in the company's latest quarterly earnings release.

AT&T highlighted its ongoing copper decommissioning as part of its ongoing capital allocation that is emphasizing the building of wireless and fiber networks. The carrier told investors on Monday that it plans to file requests with the Federal Communications Commission (FCC) to cease its sale of legacy products in approximately 1,300 wire centers. That comes after the FCC gave the go-ahead for AT&T to "stop selling, transition, and discontinue legacy voice services in a small number of wire centers," according to CEO John Stankey. AT&T on Jan. 17 submitted a test plan for its AT&T Phone for Business – Advanced (APB-A), an IP voice product that would replace wireline TDM-based services.

AT&T's John Stankey

Future of AT&T Copper Decommissioning

AT&T announced in December that it intended to end most U.S. copper-based services before 2030.

Stankey said shutting down legacy services in the 1,300 wire centers represents "the first scale test" of a new framework it has developed. He also suggested that the Trump administration and new FCC leadership has shown interest in accelerating the approval of copper retirement.

Related:As Copper Retirement Accelerates, Customers Feel the Pain of POTS Transformation

"We intend to embrace that and work with them and figure out how we take 1,300 successfully through decommission and then move through another tranche as we move through that," Stankey said in the AT&T earnings scall. "So, that's all part of the process, and it's kind of how we expected this back two years ago when we started moving down this path and putting this framework in place and building the technologies to enable it."

AT&T in November congratulated FCC commissioner Brendan Carr, whom Trump tapped to lead the agency.

“Commissioner Carr is uniquely suited to deliver on important agenda items, including removing barriers to broadband deployment and ensuring private investment is going in the right places to connect more Americans. We look forward to working together with the chairman and the rest of the commission on these and other important matters," said Ed Gillespie, senior executive vice president of external and legislative affairs.

AT&T Business Wireline Revenue Down Again

The company posted revenues of $32.3 billion in the fourth quarter of 2024, which ended Dec. 31. That's up from $32 billion a year prior. Full year revenue declined by .1% to $112.3 billion, with AT&T citing declines in business wireline and mobility equipment.

Related:Telcos, Thieves Look to Cash In on Copper

Notably, business wireline revenues went down 10%, and business wireline EBITDA went down 22%. AT&T's guidance for the upcoming year has business wireline EBITDA declining in the mid-teens.

In the meantime, revenues for business solutions wireless service increased 3.5% year-over-year.

Using AI Operationally

Stankey fielded analyst questions about how AT&T is using Ai in his business. He said AI tools have helped the company handle customer interaction. Although the company's customer has grown, Stankey said call volumes have decreased 30% year-over-year as AT&T uses more AI internally.

"It's not that we're necessarily exclusively replacing individuals with the technology, but we're making them a lot more effective and efficient in how they handle customer needs and then complementing that with customer-supported AI," he said.