Four-fifths of telecom companies acknowledge that their outdated infrastructure is hindering effective innovation

June 2025

Four-fifths of telecom companies acknowledge that their outdated infrastructure is hindering effective innovation: A recent study has found that while 81% of telecommunications companies believe their ageing (legacy) infrastructure hampers their ability to innovate, many are hesitant to replace outdated systems such as copper, 2G, and 3G and that this reluctance is holding back the rollout of new services. Furthermore, most network decision-makers surveyed reported that their overall operational costs have increased due to the need to maintain this ageing infrastructure.

TXO, a global leader in sustainable telecom network solutions, surveyed 231 network decision-makers in the UK, US, and Canada to assess how legacy infrastructure affects the telecom industry's ability to modernise and innovate. The results revealed that over three-quarters (79%) of respondents admitted their copper networks would still be in use in 2028, while more than a quarter (28%) acknowledged that their copper networks would still be in use by 2030.

Similarly, over two-fifths (43%) believe that their 2G Networks will not be decommissioned until 2030, while nearly a fifth (19%) believe their 2G networks will still be operational beyond that date. This prolonged dependence on legacy systems is undoubtedly preventing the wholesale transition to newer, more advanced technologies throughout the telecoms industry, so why is this happening?

The research identified two key challenges facing operators when it comes to the decommissioning of legacy infrastructure. Over half of those surveyed (53%) cited labour shortages as a significant factor, but it appears that the greatest obstacle for many telecom companies are the operational costs involved in maintaining their existing infrastructure, with nearly all respondents (97%) admitting to diverting resources from investments in new technology – such as fibre or 5G – to sustain their current systems.

The study also highlighted the positive steps telecom companies have taken or plan to take to address the rising costs associated with maintaining legacy infrastructure, managing their existing systems more effectively, and achieving their sustainability goals. Over 85% of those surveyed indicated that, as part of their circular economy strategy, they intend to resell their copper infrastructure as well as their 2G and 3G equipment. Additionally, four-fifths (80%) reported that they are recycling old equipment, and nearly two-thirds (63%) are purchasing refurbished components to maintain existing infrastructure.

Simon Wort, CEO at TXO said: “Decommissioning legacy networks is a complex challenge for telcos, often constrained by labour shortages and operational risks. With the right expertise and infrastructure, operators can recover value from retired equipment while accelerating their sustainability goals.”