A hot potato: Recycling previously used materials is becoming a significant business opportunity for tech companies and telecom providers. Copper installed in landlines may be worth billions, although removing the wires from the ground isn't easy.
British circular economy company TXO recently provided an enticing estimate of the potential value of copper wires owned by telecom companies if properly recycled and reused. Over the next 10 years, TXO stated, telcos could "harvest" 800,000 metric tons of copper wires. At today's prices, this material could be worth more than $7 billion, and its value continues to increase.
More than a dozen companies are now exploring how to extract this metallic treasure from old, increasingly obsolete telephone networks to resell the recycled cables on the open market. TXO highlights that copper wires aren't as essential as they once were, as fiber optics technology, which offers significantly better reliability and data transfer capabilities, is replacing the old metal.
Recycling old materials to build new devices is becoming a paramount concept in the technology industry, and copper is extremely valuable for today's applications, including solar panels and batteries. According to a 2022 report from S&P Global, demand for copper could double by 2035, increasing from 25 million metric tons to 50 million.
The copper industry is likely to struggle to keep up with growing demand, driving prices to unprecedented levels. Currently, copper is already 50 percent more expensive compared to the Covid-19 years, making recycling operations an increasingly valuable business opportunity.
However, retrieving the copper used in the telecom industry isn't as simple as unearthing the cables. The wires may have degraded after being underground for decades, and repackaging the material into marketable conditions will likely be an expensive and time-consuming process.
Despite these challenges, copper recycling could still be worth the effort. TXO claims that recycling operations could yield a 30 percent profit at today's copper prices, and large telecom companies like AT&T are already crunching the numbers.
Between 2021 and 2023, the US telecom giant recycled around 14,000 tons of copper wires, valued at an estimated $86 million to $120 million. Copper is now worth about $10,000 per metric ton.