A PwC report published earlier this year in July warned of impending copper supply shortages if emissions weren’t cut, posing direct risks to the semiconductor industry. Another industry at risk is telecommunications: one that is in the process of transitioning away from copper, but remains susceptible due to its widespread use.
Figures shared by the report were stark: 32% of semiconductor production will be reliant on copper supply at risk by 2035, which will hit 58% by 2050 if nothing is done. This is due to the water requirements of copper mines in countries experiencing droughts.
Copper cables have been a fixture of telecommunications for over a hundred years, but the industry has begun to transition over to fibre optics, driven by demand for faster speeds and an increasingly connected population. It’s also backed by policy, as the European Commission’s digital strategy is aiming to have copper lines switched off by 2030.
However, research has suggested that this aim is not necessarily achievable. Although legacy infrastructure is more challenging and expensive to operate (compared with fibre optics), operators are hesitant to make the transition, fearing disruption.
TXO, a global lifecycle technology company, works with businesses to help with exactly that. Its work with telcos includes decommissioning legacy equipment, recovering valuable copper for resale, and enhancing network performance, among others.
“Operators are under pressure on multiple fronts,” said John Teasdale, Group CTO, TXO in an exclusive interview with IoT Insider. “On the one hand, there’s relentless demand for more bandwidth, driven by AI workloads, 5G rollout, and the explosion of data-heavy applications.
“On the other hand, operators are facing tighter margins, higher energy costs, and growing scrutiny around sustainability.”
A circular economy
TXO is driven by a mission to promote a circular economy: making use of network equipment that would otherwise be disposed of. It believes that there is real value that can be derived from this equipment.
“Our expert team steps in to decommission and audit entire networks, giving operators a clear view of the real value hidden in old infrastructure,” explained Teasdale. “It’s a huge opportunity to fund both the decommissioning of outdated assets and the rollout of new ones.
“We are already seeing this play out on a large scale,” he continued. “BT is leading the charge, having generated £105 million from the resale of its old copper cables, 3,300 tonnes so far from a potential 200,000. Over the next 8 to 10 years, close to 800,000 tonnes of copper could be extracted from telecom networks worldwide as the shift to fibre gathers pace.”
The challenges facing telcos in finding this value includes being unaware of the amount of available copper in their network, or the difficulty to track it, and therefore necessitates the presence of a partner like TXO, who has these capabilities. Teasdale also cited the resource-intensive nature of removing and processing large volumes of cables as an additional challenge.
“There is also the question of alignment,” he said. “Some OEMs may see the circular economy as a challenge rather than an opportunity, even though operators’ ambitious sustainability targets to make change unavoidable.”
This is partly evidenced in a survey TXO carried out, the results of which were published in December 2024. Out of 231 decision makers quizzed, 81% said they thought legacy networks were slowing down the rollout of new services but that 79% expected their copper networks to remain operational until at least 2028.
Of that number, 28% admitted their copper networks would last until 2030 or beyond.
There was a promising result however. 85% said they planned on reselling their copper infrastructure, which is something TXO is involved in.
“By providing a reliable second-use market, we unlock value trapped in legacy infrastructure, reduce waste, and provide cost-effective alternatives to new OEM equipment,” said Teasdale. “This not only supports environmental goals but helps operators mitigate supply chain risks and avoid procurement delays.”
The most prepared operators will benefit
Teasdale said he didn’t believe pressure on copper sources was going to be a key driver behind the industry transitioning from copper to fibre, as the work is already planned and the timescales are dictated by the engineering investment required.
Furthermore, preparedness varies from country to country. “In the UK, we’ve seen real momentum, with the copper switch-off firmly on the agenda and fibre rollout advancing at pace,” said Teasdale. “Other geographies, like the US, are progressing more slowly – by early 2024, only around 52% of US homes and businesses have had access to gigabit cable broadband compared to 80% in the UK.”
The most prepared operators were treating the shift as a technology upgrade and a chance to embrace the circular economy, he added. “We see this approach as a marker of maturity – operators who integrate sustainability and financial pragmatism into their fibre strategies are far better placed to make the transition successfully.”
The shortages looming over copper supplies is not “an abstract risk”, and calls for not only greater preparedness, but also by making the most of legacy equipment through resale, to reduce reliance on newly mined copper, and embracing a circular economy approach.
“There’s a real opportunity to treat this legacy infrastructure as a resource, not waste,” stressed Teasdale. “Through urban mining and responsible asset recovery, operators can extract and recycle copper that’s already in the ground.
“No single measure will fully close the gap PwC has highlighted, but extending the lifecycle of existing assets and embracing circular practices can reduce reliance on newly extracted copper, cut costs, and minimise environmental impact.”
Ultimately, TXO sees their role in all of this to encourage greater adoption of circular economy principles, “and we’re investing in new technologies and partnerships to help the industry get there,” Teasdale concluded.
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