FIFTY SHADES OF GREEN

Telcos are adopting green strategies to cut energy costs, reduce carbon footprints, and improve efficiency, aiming to turn thin margins into positive profits

- PRATIMA HARIGUNANI

If a sector is guessed to be responsible for up to 2% of global carbon emissions, if network usage tends to account for three-quarters of a telco's energy consumption, and if green methods can help in 15-30% total energy cost savings possible, then opening the 'green playbook' is also a way to turn the 'red' line of thin profits and thick competition into a 'black' one.

Telcos are waking up to that reality. They are considering everything-from fundamental overhauls and tactical tools to new tower designs, copper-to-fibre shifts, regulatory tick-boxes, and even more software-as they realise that turning the green page has both a cost (regulatory, expense, and branding) and a reward (efficiency, reputation, and savings).

WHERE DO TELCOS TURN WHITE?

Energy and phasing out of copper in favour of fibre are two areas that present many unlocked possibilities in this transformation.

A recent McKinsey analysis, 'The growing imperative of energy optimisation for telco networks', indicates that recent energy price hikes have hit the telecommunications sector hard. Energy spending was already a significant cost factor for telecom operators, up to 5% of revenue. Still, large operators have recently seen their energy cost increases surpass sales growth by more than 50%. Mobile- and fixed-network consumption makes up over 75% of telcos' total energy consumption. More burden is expected to be added when site densification to support new wireless technologies such as 5G (and eventually 6G) will gain pace.

Also, the right energy sources and plan have a big strategic role, especially when considering factors like latency, outages and service uptime that telcos have to count.