PSTN-to-IP transition

AT&T has made it official that it plans to shut down copper networks everywhere except California by the end of 2029. This is not exactly news since the company has been quietly shutting down copper all over the country. California is a special situation because the California Public Service Commission has never deregulated AT&T as a local telephone company and the state is going to make AT&T prove to it that customers will not be stranded when the copper comes down. AT&T says it will offer an alternate technology to customers—either fiber or wireless.

An AT&T effort to replace aging copper connections with wireless options is gaining regulatory steam, potentially paving the way for more operators to do the same. That could have significant implications for the wireless network operators offering those alternatives.

Telephone companies around the world are forecast to collectively make more than $10 billion from the sale of copper over the next 15 years as they remove older cables from their networks, in a boost for the sector as demand for the metal is expected to grow. Operators are forecast to receive as much as $720 million from copper sales in 2025, according to TXO, which helps companies recycle and sell the metal.

AT&T has been laying the groundwork for the decommissioning of its extensive copper network.

Anybody not involved in the telephone business will probably be surprised to find that the old TDM telephone networks are still very much alive and in place. The old technologies were supposed to be phased out and replaced by digital technologies.

Telephone companies may want to ditch copper and focus on the next best thing (i.e., fiber). But states aren’t about to let them off the hook. According to New Street Research, ILECs seeking to end their carrier of last resort (COLR) obligations are getting pushback from states because consumers might not have another option for internet access—including wireless. A COLR is a telecommunications service provider that’s required to serve upon request all customers within its designated service areas.

The Fiber Broadband Associations Technology Committee published a new white paper on "The Benefits of Retiring Copper Today." Many telecommunications providers still face unnecessary complexity and expense by continuing to operate legacy copper last-mile broadband infrastructure, especially if they already migrated to fiber in the core and access network.

There are several reasons why a telephone company with legacy copper cables might want to extract those cables. First, copper is valuable. It’s currently priced at an all-time high of more than $5 per pound. And who doesn’t love found money? Secondly, some carriers, such as AT&T, are trying to convert large swathes of their copper plant to fiber.

The US government has provided more detail on how a former AT&T executive allegedly bribed a powerful state lawmaker's ally in order to obtain legislation favorable to AT&T's business. Former AT&T Illinois President Paul La Schiazza is set to go on trial in September 2024 after being indicted on charges of conspiracy to unlawfully influence then-Illinois House Speaker Michael Madigan (D).

The telecommunications industry’s transition from an analogue to a digital telephone system was partially paused after two Virgin Media O2 customers died following the failure of their telecare devices after the upgrade process. The incidents in 2023 triggered the government’s announcement in December that it had secured industry commitments to protect vulnerable customers.