01 April 2025

New research from TXO highlights the significant financial and operational strain that the high costs of maintaining legacy networks — such as copper, 2G, and 3G — exert on service providers. Despite the challenges, many operators expect to keep these ageing infrastructures operational for the foreseeable future.

The study found that 79% of operators anticipate their copper networks will remain functional at least until 2028, with 28% of respondents predicting service extension until 2030 or beyond. Additionally, 43% of service providers believe 2G networks will not be fully phased out until 2030, while 19% forecast that decommissioning efforts will extend even further.

A staggering 81% of survey participants stated that these legacy networks impede their ability to roll out new services, thus limiting their competitiveness against more agile greenfield operators.

“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 poses a significant obstacle to new network innovations in 5G and fibre, impacting both competitiveness and sustainability.”

The burden of aging infrastructure is not only financial but operational as well. An alarming 98% of network decision-makers reported that maintaining outdated networks has raised their overall operational costs. Moreover, the research indicated that major outages connected to legacy networks cost businesses an average of £1,073,684 per year due to downtime.

“Outages on legacy infrastructure are becoming more frequent and disruptive than ever,” said Teasdale. “Older networks were not designed to meet today’s demands, making them susceptible to failure. For many large service providers, maintenance costs have surged by 30-40% over the past year alone.

Despite the mounting challenges associated with legacy networks, telecommunications companies remain hesitant to undertake large-scale decommissioning efforts. Three-quarters of those surveyed indicated that they have postponed phasing out older networks, with 53% attributing delays to labour shortages.

On a positive note, many operators are adopting circular economy initiatives as a potential solution. The study revealed that 85% of respondents plan to resell copper infrastructure as part of a circular economy strategy, while 80% have similar plans for 2G and 3G equipment. Additionally, earlier TXO research showed that 80% of operators are recycling obsolete equipment, and 63% are purchasing refurbished components to support ongoing operations.

“Decommissioning legacy networks is a complex challenge for telcos, often constrained by labour shortages and operational risks. However, with the right expertise and infrastructure, operators can recapture value from retired equipment while advancing their sustainability goals. By reselling, recycling, and reusing network assets, the industry is making significant strides toward establishing a more circular economy — one that minimizes waste, reduces costs, and fosters a greener, more resilient technology sector,” said Simon Wort, CEO at TXO.