BT to Earn $2.7B from Selling Recycled Copper from Legacy Networks
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Quick answer
UK telecom operator BT plans to earn up to $2.7 billion by selling copper from outdated networks, driven by rising demand for the metal in AI infrastructure and energy sectors.
UK telecom giant BT and its subsidiary Openreach have launched a large-scale program to recycle copper cables from outdated networks. Preliminary estimates suggest the company could extract up to 200,000 tons of copper over the coming years, generating up to $2.7 billion in revenue at current metal prices.
A deal with the UK’s largest metal recycler, EMR, involves the transfer of approximately 200,000 tons of copper over four years. The initial contract for the first batches of metal has already brought BT over $134 million. Additionally, the company is exploring open-market sales, where copper prices have reached a record $14,000 per ton.
The surge in copper demand stems from the expansion of AI data center infrastructure and the need to modernize energy grids. Despite the adoption of fiber-optic solutions in data centers, copper remains a critical material for power transmission due to its high conductivity and thermal resistance.
BT’s transition to fiber-optic networks will not only enhance service quality for customers but also serve as a new revenue stream. The network modernization program is expected to continue through the 2030s, ensuring long-term financial benefits amid strong copper demand.
Common questions
- Why has copper become so critical in the AI era?
- Copper is essential for data center cabling and energy grids due to its superior electrical conductivity and heat resistance. The AI boom has significantly increased demand for this metal.
- How much copper does BT plan to recycle?
- BT aims to extract up to 200,000 tons of copper from legacy networks over several years. Over 22,000 tons have already been recovered.
- How does copper recycling tie into BT’s fiber-optic transition?
- BT’s shift from copper to fiber-optic networks not only improves service quality but also unlocks additional revenue by selling the valuable metal.
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