Analysts Revise Telecommunications Lead Remediation Estimate to $4.4 Billion to $21 Billion

If telecommunications providers are required to remove decades-old lead-sheathed cable from their networks, the total bill is likely to be in the range of $4.4 billion to $21 billion, according to a new estimate from New Street Research. That’s a big drop from a preliminary New Street Research estimate of $60 billion. The revised estimate is based on new information provided by TDS Telecom, AT&T, and other industry sources about the extent of lead-sheathed cable nationwide and about likely remediation scenarios. The telecom industry hasn’t used lead-sheathed cable since the 1950s or 1960s, but the cabling has become a hot topic in the wake of allegations made by the Wall Street Journal. In a heavily researched series of articles, the WSJ argued that the cabling could pose a public health threat when the lead shielding degrades over time, whether installed on poles, in the ground or under water. Using the AT&T data and AT&T market share, New Street Research estimated the cost of any lead remediation that might be required for other telecom providers at between $7.1 billion and $14.3 billion, yielding a nationwide forecast, including AT&T and other providers, at between $13.7 billion and $21 billion. Remediation costs might be as low as $4.4 billion nationwide, however, if buried cabling does not have to be removed, the researchers note.