Data: 81% of telcos admit aging infrastructure slowing innovation

Data: 81% of telcos admit aging infrastructure slowing innovation

A rusting cell tower

Legacy infrastructure is straining service providers financially and operationally, yet many remain hesitant to retire ageing systems like copper, 2G, and 3G, new research from TXO reveals.

A survey of 231 network decision-makers across the UK, US, and Canada found that 81% believe legacy networks are slowing the rollout of new services.

Still, 79% expect their copper networks to remain operational until at least 2028, while 43% don’t anticipate fully phasing out 2G until 2030.

Some brands have already taken measures to modernise their networks, including Deutsche Telekom shutting off its 2G network in 2028 and BT which has called for a UK-wide shift away from copper.

TXO’s research, however, suggests changes like these aren’t being made fast enough, with more than a quarter (28%) admitting that their copper networks would last until 2030 or beyond.

“Operators are caught in a challenging cycle where legacy networks are becoming increasingly costly to maintain, yet full decommissioning is still years away,” said John Teasdale, group chief network officer at TXO. “The continued reliance on copper and legacy mobile networks is a major hurdle to new network innovations in 5G and fibre, hindering competitiveness and sustainability.”

Some 98% of surveyed network decision-makers admitted that ageing infrastructure was increasing their overall operational costs.

That financial burden is then being compounded by the cost of major outages, which found that legacy network blackouts that result in downtime cost businesses an average of £1,073,684 per year.

“Outages on legacy infrastructure are more frequent and disruptive than ever," Teasdale said. “Older networks were not built to handle today’s demands, making them prone to failure, and for many large service providers, the maintenance costs will have surged by 30-40% over the past year alone.

“The combination of escalating costs, downtime, and energy inefficiency makes the case for decommissioning legacy network technology stronger than ever.”

Despite mounting financial and operational challenges, TXO’s survey found telcos remain cautious about large-scale decommissioning.

Three-quarters of respondents said they have delayed phasing out older networks, while 53% of respondents admitted to having delayed decommissioning projects due to labour shortages.

For those that plan to phase out older systems, 85% of respondents said they plan to resell copper infrastructure as part of a circular economy strategy, with 80% having similar plans for 2G and 3G equipment.

Simon Wort, CEO at TXO said: “Decommissioning legacy networks is a complex challenge for telcos, often constrained by labour shortages and operational risks. With the right expertise and infrastructure, operators can recover value from retired equipment while accelerating their sustainability goals.

“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.”

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