Lumen CFO expects up to $1.5 billion from legacy copper amid pivot to AI connectivity
"Copper is worth more to us mined than operated," says Chris Stansbury, as Lumen moves to shut down about a quarter of its copper network by the end of next year.
Lumen Technologies, the No. 354 company on the Fortune 500 list, is pivoting from a legacy telecom player to an AI enterprise connectivity provider, finding new value in its old copper network. President and CFO Chris Stansbury expects up to $1.5 billion from copper recovery over the next five years, as the company plans to decommission about 25% of its copper network, including services in Iowa, Florida, Nevada, and Utah by the end of next year.
This strategic shift is part of Lumen's broader effort to reinvent itself, focusing on enterprise connectivity for the AI era, leveraging its large fiber network alongside Alkira's software. Lumen reported a revenue decline of 12.1% year over year in the third quarter, but adjusted EBITDA remained strong at $715 million, and strategic revenue grew by 10% to $1.28 billion, driven by AI demand and private connectivity deals.
CEO Kate Johnson and Stansbury have been working on this transformation for about four years, emphasizing the need for a cultural shift and respectful communication during the change.
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