- New FCC rules on copper retirement were a long time coming, operators noted at a USTelecom event
- It’s not just about cutting costs and outdated regs – some parts of the copper network just can’t be fixed
- Keeping copper active could pose an issue for AI innovation and power constraints
Copper retirement isn't just about regulatory compliance. Copper networks are just plain impractical to maintain, according to operators.
The U.S. is only now getting the ball rolling on copper retirement reform, and it’s about time, as operators this week touched upon their copper pain points and the biggest issues of keeping these old networks running.
Speaking at USTelecom’s American Connectivity Forum, Rhonda Johnson, EVP of federal regulatory relations at AT&T, stated bluntly that operators cannot continue to maintain and operate two different networks, “and in some cases more than that.”
AT&T, Lumen, and other operators have been trying to end carrier of last resort (COLR) obligations in states where they want to shut down their copper networks. A COLR is required to offer basic telephone service to any customer who requests it.
Notably, the FCC’s updated rules on copper retirement don’t affect COLR policy on the state level. California last year rejected AT&T’s request to end its COLR obligation, as the state argued there’s no replacement provider available to offer copper-based service.
“I think there’s a perception that someone is taking away their phone, and we really need to make sure that people understand that we’re talking about modernizing,” Johnson said. “We spent a billion dollars a year in California maintaining this old network – just in California – where 95% of the customers have left it.”
Steve Tugentman, Brightspeed’s chief legal officer, similarly noted these copper voice services are only used by “about 7-8%” of the population. Putting so much capital to keep copper up and running “just doesn’t lead to progress.”
“Imagine if we were required to continue telegraphs and telegrams as opposed to emails and internet,” he said.
Furthermore, Johnson noted the rise of climate change has brought about more natural disasters like hurricanes and wildfires that wreak havoc on networks,
“When something destroys a network, the fact that you may need to rebuild copper to have those same services does not make sense,” she said.
The cost to maintain copper networks is is an issue, especially coupled with vandalism plaguing operators. And being forced to keep these networks running is a “disservice” to customers, said Ziply Fiber CEO Harold Zeitz, “because there are failure points that just cannot be solved.”
Some copper switches are so old that they just can’t be fixed, and equipment is likely no longer available on the market. “And the people that even know how to use this are retired and gone,” he added.
What copper means for AI and power
The U.S. is at a “critical inflection point” in the global AI race, said Melissa Mann, SVP of public policy and government affairs at Lumen. For Lumen’s part, it’s been making significant investments into its fiber network to support AI, cloud and other next-generation services.
“Anytime you’re diverting capital away from the infrastructure layer that’s going to support that technology that needs significant investment, this becomes a question of national security,” she said.
As for power, we’re well aware data centers will require a lot of it to fully support AI technology and that we are in short supply. Ageing copper networks are just as power-hungry, Zeitz pointed out.