The price of copper has long been used as an indicator of economic health. A global copper shortage, however, threatens to disrupt this balance, affecting not only these industries but also sustainable sectors like wind energy and electric vehicle charging.

But, as telecom networks worldwide transition to fiber optics, a more affordable and sustainable copper source could meet demand while funding this ongoing network evolution.

The copper crunch

It’s not that the world is running out of this natural resource. It’s rather that extracting and producing copper is an incredibly lengthy process. Supply simply can’t meet demand.

While copper is often associated with old legacy tech in the telecoms space, global demand for copper is increasing. Much of this demand is being driven by renewable energy.

Wind farms require huge amounts of copper, and with the industry's global footprint surging by 50 percent last year, this demand continues to grow. It’s a similar story with electrical vehicle charging - if governments are to hit targets for EV charging availability, they will need the raw materials.

But copper mining is incredibly inefficient, demanding substantial time, resources, and environmental impact. While it varies depending on quality, you typically need to mine at least 100 tons of ore to produce 1 ton of copper.

Setting up new mines also takes decades due to regulatory approvals, infrastructure development, and environmental assessments. Some claim that opening up a single copper mine takes 23 years. As a result, it’s estimated that mines will only meet 80 percent of copper needs by 2030.

Time to turn to ‘Urban Mining’

All in all, the outlook is bleak, but telecoms networks may have the answer. Copper remains foundational in older telecom networks, particularly in Europe and North America, with incumbent operators like AT&T, Orange, and BT. However, networks are actively transitioning from copper to fiber optics particularly with ‘last mile connectivity’ and the replacement of infrastructure like Public Switched Telephone Networks (PSTN).

While recycling from these sources may not completely plug the 20 percent gap in supply, it can go a long way. It almost goes without saying, that precious metals reclaimed this way have far less environmental impact - around 15 times less. Purchasing copper from these sources is still often cheaper than mining it.

This isn’t just positive for the environment and global copper demand, it's a massive opportunity for telecom networks to fund the decommissioning of old infrastructure and the rollout of new. As of early 2024, approximately only 52 percent of U.S. homes and businesses have access to fiber broadband - well behind the UK at 80 percent. So, offloading copper into the circular economy has financial, environmental, and operational benefits for operators and service providers.

This isn’t just theoretical either. BT, for example, is leading the way in this. It recently announced it received £105 million ($133m) for the resale of its old copper cables, extracting 3,300 of a potential 200,000 tonnes of cables. Over the next eight to ten years, an estimated 800,000 tons of copper could be extracted from telecom networks as part of the global shift to fiber optics.

Big challenge, bigger rewards

While the opportunity is considerable, decommissioning equipment and extracting raw materials on such a huge scale is no mean feat. With the circular economy, de-installation is much more environmentally and financially friendly, but the logistical challenge is far greater. You’re not just managing new equipment going into the network, but keeping track of everything being removed. It requires careful planning and a considerable workforce to complete the work efficiently while minimizing disruption as much as possible.

Like BT, a phased, multi-year approach is required to safely de-install power, fiber, and data cables with minimal impact on live environments, allowing ongoing operations to continue smoothly. It’s not glamorous, but comprehensive inventories and bullet-proof documentation are often the difference makers in projects of this scope.

Unlocking the value of reclaimed copper is both an environmental and strategic win, especially with the soaring demand for this vital resource. Through effective partnerships and advanced material recovery processes, telecom companies can transform what was once surplus to requirements into a valuable asset. Extracted copper can re-enter the supply chain, supporting the broader green transition and reducing reliance on new mining operations. In the long term, this approach can help stabilize supply, meet regulatory requirements, and position telecoms as leaders in sustainable infrastructure practices.

While the timing for copper is imperative as shortages could begin to cause global challenges in the next few years, it's not the only precious material that can be reclaimed from our networks. Gold, silver, titanium, and cobalt are all fairly common in older telecom hardware. In all cases, the time to start is now. This equipment is constantly being removed from networks, so launching resale schemes will deliver financial and environmental benefits for the operator and beyond.

For telco operators and service providers, this is just one example of the value the circular economy offers. But it’s only a slice of the bigger picture. Beyond reselling and recycling, there's immense untapped potential in using second-hand equipment and refurbishing legacy kits. Environmental and financial savings, faster lead times, and more resilient supply chains are all within reach - organizations just need to choose to embrace them.