Sustainability is crucial for the telecom industry, not only to reduce its carbon footprint but also to save costs. A report by McKinsey states that companies can save 15 to 30 per cent of energy costs by embracing decarbonisation. To be more precise, mobile network operators (MNOs) need to go green because mobile and fixed networks account for over 75 per cent of telcos’ energy consumption and over 25 per cent of their greenhouse gas (GHG) emissions.
Telecom operators around the globe have made significant efforts towards the goal of net zero emissions and have achieved tangible emissions reductions. According to the GSMA, Europe and North America have led the charge in this, with a remarkable 50 per cent and 37 per cent emission reduction between 2019 and 2022 respectively. Meanwhile, Asia Pacific was the only region that registered a rise (6 per cent) in its emissions during
this period.
That said, mobile operators in Asia Pacific are showing their commitment to decarbonisation by setting net zero targets. In India, for instance, Airtel and Reliance Jio have committed to cut their absolute Scope 1 (that is, direct) and Scope 2 (indirect) GHG emissions by 50.2 per cent and 76 per cent by FY 2031 and FY 2028 respectively.
Operators are also exploring improved site designs to curb their GHG emissions. Using sustainable materials for high-efficiency network equipment, optimising cooling equipment in data centres, consolidating network hardware, shifting to centralised software-defined wide area network architecture, adopting the principles of circularity, and reducing e-waste are some strategies being deployed by MNOs in this direction.
For example, the UK’s telecom operator, Three, is installing next-generation artificial intelligence (AI)-powered solutions such as dual-band Radio 4490 to boost energy efficiency. Jio and Airtel are channelling their efforts towards site solarisation.
Smart meters are internet of things devices that promote analytics-driven energy optimisation. They offer a granular level understanding of energy consumption across a telco’s network in real time and even supplement its data infrastructure. Airtel, for instance, is using smart metering to reduce energy wastage alongside accurately tracking energy consumption.
Telcos are also using digital twins for energy saving. Digital twins use AI to create a virtual representation of the physical network. This enables networks to assess real-time traffic demand data and optimise network settings, including power levels and cell tower configurations. Vodafone Germany is also using digital twins for monitoring green sites in the country.
Like digital twins, self-optimising networks (SONs) allow automatically turning off base stations at intervals of less demand (for instance, night-time). According to GSMA estimates, in a scenario where mobile networks are expected to double their power consumption between 2023 and 2025, SONs can prove to be a critical energy-saving solution. This is attracting the interest of key players in the industry.
At Mobile World Congress 2024, for instance, Orange announced that it will roll out a new “extreme deep sleep” power-saving solution. The sleep mode can reduce radio unit consumption by a factor of eight by leveraging its centralised SON tools to switch off some mobile frequencies during lean traffic times.
Further, MNOs should consider shutting down 3G networks, which are considered to be less energy efficient. A study by Deloitte points out that retiring 3G can reduce energy costs by 15 per cent. It can also free up spectrum for 4G and 5G (that is, refarming). Countries such as Singapore are making progress in this direction, as it is set to close its 3G networks this year.
Lastly, withdrawing copper networks will also prove to be a game changer in controlling GHG emissions, especially as the number of customers relying on copper networks declines.
Fibre has emerged as a better alternative as it uses up to 80 per cent less energy. Countries such as Japan, Australia, New Zealand, Singapore, Norway, Sweden, Spain, Portugal, Estonia, France, Italy, the UK and Switzerland are working towards the discontinuation of copper networks by the end of 2024.
Bottom line
The optimal use of energy is beneficial for telecom operators as they not only stand to gain by cutting their carbon costs but can also reduce their operational expenditures.
However, telcos must conduct an end-to-end assessment of the entire value chain to identify and rectify their energy leaks in order to honour their net zero commitments. This would entail a holistic approach requiring government regulations such as decommissioning copper networks as well as perennial innovations by the industry to foster energy-saving solutions.
