Lumen Technologies is dismantling its legacy copper network to fund a shift toward AI-focused enterprise connectivity. The company plans to extract and sell copper from its infrastructure in Florida, Iowa, Nevada, and Utah, which accounts for roughly 25% of its total copper footprint.
The firm projects pretax proceeds from this recovery to reach between $1 billion and $1.5 billion over the next five years, depending on market conditions. Additionally, the company expects to save $200 million to $300 million in annual capital expenditures previously required to maintain the aging network.
Lumen is simultaneously expanding its strategic services, such as private connectivity for hyperscalers. Cumulative deals in this segment have surpassed $13.5 billion, with $700 million added in the third quarter of 2026 alone. Strategic revenue now accounts for 55% of the company's total business revenue, showing 10% year-over-year growth.
The company reported that AI-related traffic on its backbone has surged by more than 1,000% since April 2026. For the full year 2026, Lumen reaffirmed its adjusted EBITDA guidance in the range of $3.1 billion to $3.3 billion.
