AT&T (T) filed a lawsuit against California to stop offering traditional copper-wire telephone service to new customers, Reuters reported late Wednesday, citing a court filing.

The state mandates a $1 billion annual expenditure to maintain a century-old network serving only 3% of regional households, the report said.

The company pledged a $19 billion investment to connect over 4 million additional local homes and businesses by 2030 using more reliable IP-based networks, the report said.

The carrier also petitioned the Federal Communications Commission to end traditional service and pre-empt state rules amid issues like copper theft, projecting the transition will save 300 million kilowatt-hours annually by 2030, according to the report.

AT&T and California officials did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)