Legacy networks are proving increasingly expensive for operators to maintain, yet their complete phase-out remains years away, according new research from TXO, a circular economy partner for the telecommunications industry.
The financial strain caused by rising operational costs to maintain aging infrastructure is a growing concern among virtually all (98%) of network decision-makers. The impact goes beyond finances and threatens operational resilience as well.
According to the study, “The telecoms legacy burden: How maintaining older networks is weighing down operators,” major outages stemming from legacy networks lead to downtime and cost businesses an average of £1,073,684 annually.
The TXO study was built on surveys with hundreds of network decision-makers across both the United Kingdom and the United States. It analyzes the scale of the challenge; the operational, financial and environmental impact; and the progress of decommissioning and initiatives to ease the burden.
Although the industry has made significant strides in modernization, 79% of surveyed operators anticipate their copper networks will remain active until at least 2028, including 28% who expect them to go through 2030 or beyond. Likewise, 43% of service providers predict that 2G networks won’t be fully decommissioned until 2030, including 19% who foresee extending them beyond that timeline.
It showed that the ongoing dependence on copper and outdated mobile networks poses significant obstacles to advancing 5G and fiber technologies, hampering operators’ competitiveness and sustainability. Overall, 81% of surveyed respondents indicated that legacy networks are obstructing their ability to launch new services, particularly when compared with greenfield operators.
Many operators have found circular economy initiatives to be a good solution. As many as 85% of respondents plan to resell copper infrastructure, and 80% plan to resell 2G and 3G equipment. Earlier research from TXO revealed that 8 in 10 operators are recycling old equipment, and more than 6 in 10 purchase refurbished components to support their operations.
“Decommissioning legacy networks is a complex challenge for telcos, often constrained by labor shortages and operational risks… By reselling, recycling, and reusing network assets, the industry is taking a crucial step toward a more circular economy — one that reduces waste, lowers costs, and builds a greener, more resilient technology sector,” said Simon Wort, CEO of TXO, in the study.