What are the key drivers for a move to a greener network?

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Saima Ansari, Deutsche Telekom/NGMN Alliance (00:20):
So I would say that the commitment towards carbon neutrality is one of the major key drivers because many operators are actually aiming to reach net zero targets by 2050 or even earlier. Apart from that, we need to also notice that actually the operations of our networks is the most energy consuming aspect for us, and that definitely drives us internally from an operations point of view to reduce our energy consumptions and also not to forget that it brings the potential for cost savings if we are using energy efficient technologies.

Fernando Castro Cristin, HPE (01:04):
So as citizens of the world, we all know that we need to do something about the energy consumption, and the industry has implemented the different KPIs to be able to achieve that. Corporate responsibility that can even help you in winning deals because the awards sometimes depend on that. We have the regulations and compliancy that is driving this innovation, and of course, cost savings, because the more we consume, the more it's going to cost. So it's going to be those KPIs that will make it happen.

Francis Haysom, Appledore Research (01:41):
The major one has been the geopolitical situation, and particularly the price shock of energy globally following the Ukraine war. The profitability squeeze on telco is also important. Energy is a key operational cost. Continued growth in data, traffic, and energy to support it will lead into this profitability. This is the more reliable remote sites off-grid. Diesel generators are expensive to run and maintain. Oh, and there is the climate crisis, 2 to 3% of global energy uses by ICT, and half of this is by telcos directly. Increasing pressure from government and regulation to make savings and importantly reliance on imported fossil energy.

Aji Ed, Nokia (02:26):
Energy efficiency is a key driver for network transformation. Let me highlight a few aspects. Number one, the big picture. The technology suppliers and operators are responding to the global climate challenge with a strong commitment to net zero targets. Second, the demand from our customers regulators, the governments and investors for sustainable practices. And third energy costs are a major opex driver. About 15 to 30% of the total network opex is spent on energy and growing energy prices put even more pressure on margins. So network modernization with 5G can significantly help operators reduce their network energy consumption and cost and later, carbon emissions on their path to net zero.

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4 in 4: Sustainability - Episode 1

Over the coming months, TelecomTV will be sharing quick, no-nonsense insights from industry experts in our new '4 in 4' programme. In this first episode of the 'Sustainability' series, 4 in 4 asks executives from NGMN, Hewlett Packard Enterprise, Nokia and Appledore Research about the specific market drivers for the move to a greener network.

Featuring:

  • Aji Ed, VP, Head of Partner Cloud RAN Solutions, Nokia
  • Fernando Castro Cristin, VP & GM, Telco Infrastructure, Hewlett Packard Enterprise
  • Francis Haysom, Principal Analyst, Appledore Research
  • Saima Ansari, Senior Partner Manager, Deutsche Telekom and Green Future Networks Lead, NGMN

Recorded November 2024

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