How and why telcos are spinning gold out of copperHow and why telcos are spinning gold out of copper

Copper network retirement and transition initiatives are 'definitely picking up,' says TXO's Dave Evans. TXO, which aids such projects, believes this represents a $7 billion opportunity to telcos based on current copper prices.

Jeff Baumgartner, Senior Editor

January 27, 2025

At a Glance

  • What kinds of copper infrastructure are candidates for redistribution and resale? (05:15)
  • Why TXO believes copper retirement and reclamation is poised to be a $7 billion market (14:30)
  • Which markets are driving up demand for copper? (24:15)

Led by AT&T's recently announced initiative to phase out copper infrastructure across the bulk of its footprint in favor of fiber and wireless service alternatives, some of the world's top telcos are getting more active with their copper retirement plans.

The retirement of copper in favor of wireless and fiber options can help telcos like AT&T reduce power requirements and lean more heavily on higher-performing services in an age of unprecedented competition. There's also an opportunity for operators to cull some dollars from those moves.

AT&T's plan is about to move ahead after it received approval from the FCC to start the process of shutting down about 1,300 wire centers, representing a chunk of its grand total of roughly 4,600. Notably, AT&T intends to generate revenue from its decommissioning plan by leasing out central offices and reselling copper assets.

TXO is among the companies that specialize in helping telcos spin their copper assets into gold by reselling the equipment attached to the copper and by reselling the copper lines themselves or some of the bare, precious metals that can be smelted and extracted from the copper infrastructure.

A $7 billion opportunity

TXO, which works with several tier 1 operators across the globe, reckons that the copper retirement/transition represents a $7 billion opportunity for telcos based on current copper prices.

"I used a reference recently that the streets are not paved with gold; they are paved with copper … You're surrounded by an asset that is carrying very little traffic," David Evans, TXO's head of asset recovery and services, explains in this episode of the Light Reading Podcast, which digs into that opportunity and some broader trends tied to the copper topic.

Demand for copper is on the rise amid spreading adoption of electric vehicles and the need for more EV infrastructure (i.e. charging stations) along with a decline in traditional copper mining, Evans says. Traditional mining is being supplanted by so-called "urban mining" fueled by the copper infrastructure that can be recovered in the field.

Evans reckons that urban mining is about 13 times cheaper that extracting copper from a mine.

TXO, which was founded in 2005 and has operations around the world, is interested in providing a local option for both carriers and equipment suppliers when it comes to asset retirement along with the ability to "self-spare" products and components required to run and maintain their existing networks and product portfolios, Evans explains.

Repurposing copper infrastructure

"Our core business is repurposing assets from one [customer] and selling to another," says Evans. AT&T, for example, might buy assets from TXO that TXO has sourced from other carriers around the world, including the likes of Telia, BT, Vodafone and Verizon.

"And it's not just recycling; it's repurposing somewhere else in the world if there's a market," he adds. In addition to the copper that's installed in the ground or overhead, "we're also really interested in what's attached to that cable," he says.

As for TXO's forecast on values that telcos will be able to extract from their copper retirement plans, the company estimates that about 1 million tons worth of copper will come out of that market within the next 15 to 20 years. Openreach alone, Evans points out, is sitting on about 200,000 tons of copper in the ground currently serving the UK market.  

But Evans also acknowledges that some copper, especially what's underground, is not necessarily easy to access. Plus, much of that copper is still being used to deliver services, so it can't be removed until the migration period takes place.

Operators also have to assess whether it is even worth trying to get it out of the ground based on the current market value of the copper.  

"There's an enormous caveat around that," Evans says. "Who's to say you can even get to it?"

Copper retirement initiatives on a 'steady incline'

Those caveats aside, Evans says the market for copper retirement is "definitely picking up," citing work underway at operators such as AT&T, BT and Orange.

But he characterizes that activity as a "steady incline" rather than a sharp increase.

"They're transitioning to fiber, because it's faster [and] it's cheaper to run from an energy perspective," Evans says. "That's a plus. But they are [also] seeing lucrative returns."

Evans also gives high marks for AT&T's decision to develop a new product that will replicate the POTS service delivered on copper today. That product, called AT&T Phone-Advanced Phone, can run on fiber or wireless. "That's the type of product that you need in that market that is backed up by non-copper based technology so that you can migrate away without a danger to service," he explains.

Here's a snapshot of our conversation (click the closed captioning button in the player for a lightly edited transcript):

  • An overview of TXO's business (01:50)

  • Details on which elements of the copper infrastructure are candidates for redistribution and resale (05:15)

  • TXO's role in the retirement, redistribution and resale of copper assets and infrastructure and associated migration services (06:50)

  • Why TXO believes copper retirement and reclamation is poised to be a $7 billion market (14:30)

  • Some important caveats around copper reclamation and retirement (17:00)

  • Anecdotal examples of how interest in copper infrastructure retirement is picking up steam (18:00)

  • Commentary on which markets, including electric vehicles and a reduction in traditional copper mining, are driving up demand for copper (24:15)

About the Author

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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