Copper Retirement Emerging as a Focus of Regulators Worldwide
The FCC's move to consider an NPRM on copper retirements at the July 24 open meeting (see 2507030049) is part of a global trend, experts said Tuesday during a World Broadband Association webinar. Operators worldwide have the same concerns as those in the U.S. about the cost of maintaining legacy networks as fiber is deployed, panelists said.
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The telecom market is “evolving at a brisk pace,” said Sarah McBride, Omdia principal analyst. Consumer demand has been growing for “ultra-fast” connectivity and increased bandwidth beyond the capabilities of copper, she said. Providers have been “future-proofing” their networks by rolling out fiber but still face high operating costs to maintain aging copper lines, she added.
“As fiber networks are expanded, it doesn’t make financial sense for incumbents to maintain two sets of infrastructure,” McBride said. The aim is to decommission the legacy networks, she said. Governments around the world have also been “setting coverage targets and detailing national broadband plans, which aim to drive fiber deployment." The U.K. aims to cover 90% of premises with fiber by 2032, she said.
Only a few countries, including Singapore and Norway, have completely shut down copper networks so far, McBride said. In Europe, the transition has been slow and “fragmented,” she said. More than half of incumbent providers have announced plans to shutter parts of their legacy networks, but few plan to completely retire copper networks before 2030.
As in the U.S., regulators in other nations have requirements carriers must meet as they migrate customers to fiber, McBride said. “They can’t just simply switch off the network." Many requirements aim to promote competition and protect consumers, “especially vulnerable customers." Some regulators are “gradually relaxing” rules requiring carriers to provide wholesale access to their copper networks once fiber targets are reached. Long-notice requirements for copper switch-off “can be a substantial barrier to the migration process.”
The copper-to-fiber transition “succeeds only when regulation reflects local realities and is backed by clear incentives,” said Ying Shi, director of green and low-carbon technology at the China Telecom Research Institute. Since 2011, fiber deployment has been written into China’s broadband plan, she said. Fiber penetration in China is already at 66.6% and shows how regulators can “retire copper quickly without sacrificing service quality." China has relied on subsidies and incentives and initially focused on big cities.
South African carrier Openserve is following a “fiber-led” strategy, said Kagiso Modise, executive in charge of broadband technology. Openserve began deploying fiber in 2015 and as of last year covered 590,000 homes, he said. “It has transformed and impacted the way we provide services to our customers,” he said. The transition from copper requires “clear incentives” for making the change, especially in rural areas where deployments are the most expensive, he added.