Towards Telecom's Net Zero Goal

This article is co-authored by Utpal Mangla.

The telecommunications industry has a significant impact on the environment due to its high energy consumption, which is estimated to be around 1.5-2% of global electricity. As a result, sustainability is becoming increasingly important for telecom operators, who are facing pressure to reduce their environmental impact and operate in a more responsible way. Building green networks is a key aspect of achieving sustainability in the telecom industry. With the advent of 5G technology, the need for energy-efficient networks has become even more pressing. While 5G is more energy-efficient per gigabyte, it is projected to increase data usage by 400%, resulting in higher energy consumption. There is growing momentum within the telecoms industry for investments in sustainable technology and a reduction in carbon emissions. Governments and regulators are placing increasing emphasis on Environment, Social and Governance (ESG) criteria in decision-making, which has encouraged operators to set public commitments for reducing carbon emissions. This article will explore some of the solutions and challenges needed to make this transition.

Emission reduction targets for networks

ITU has worked jointly with GSMA, GeSI and SBTi to define the trajectories to be followed when setting emission targets reflecting the period with the baseline of 2015 until 2030. Around 40% of telecom operators have committed to Science-Based Targets (SBT). Similar guidance has also been developed for equipment manufacturers.

Source: ITU - Emission Trajectories for ICT Operators 2020-2030

The next few years will be crucial as operators work to transition to more energy-efficient operations.  Let us look at some of the solutions that can be adopted.

Solutions to reduce carbon footprint

To lower the environmental footprint operators can look at following key methods:

1. Improve energy efficiency: Telecom companies can improve energy efficiency in their networks by adopting a combination of strategies, such as using energy-efficient equipment, implementing smart energy management systems, and utilizing AI for efficient data analysis. Another important aspect is movement to cloud which has further accelerated with 5G. By centralizing network intelligence and control at the software layer, they can reduce their dependency on hardware and increase the lifespan of their equipment. Processing and cooling is more energy-efficient in a pooled, centralised environment, compared to the silos of PCs, phones and other devices. User equipment also needs less distributed processing and storage capacity, so designing and producing it is less resource-intensive, which can radically reduce e-waste.
2. Use renewable energy: Renewable energy is crucial part of building green networks due to their low emission profiles. Mobile operators adopt different strategies when it comes to the sourcing of renewable energy. Telecoms companies are leading adopters of renewable energy. In Europe, BT, Deutsche Telekom, Telefónica and Vodafone, for example, all plan to have 100% of electricity usage supplied by renewables by 2025 or earlier. SoftBank and Telefónica have committed to this goal by 2030. Power purchase agreements (PPAs) have helped advance renewable usage. PPAs are agreements in which an operator (or company from any industry) invests capital with a renewable energy provider to fund capacity at a specific generation facility, such as a solar or wind farm. The agreements typically include a dedicated supply of energy to the mobile operator (or any other investor) over a period of years. This has the benefit of securing supply and protecting against price shocks in global wholesale energy markets. Investments in PPA are estimated to be $50 billion annually in 2022.
3. Optimise network design: operators should modernize their network design and retire outdated and legacy networks to reduce financial and environmental costs. Keeping multiple network layers, such as 2G, 3G, 4G, and 5G, can be costly and harmful to the environment. With the growth of 5G deployments and the ability to refarm 2G/3G spectrum, vendors are focusing on solutions that simplify network sites. This involves designing sites to be as simple as possible with all network elements integrated on one pole, resulting in a more efficient power supply. By replacing older power systems with streamlined power linkages, specialized AC/DC power supplies, and lithium-ion batteries, operators can reduce their environmental impact and improve the efficiency of their networks.

Challenges for sustainability goals

Sustainability is now fundamental in how operators design and implement networks however there is geographic imbalance in renewable energy usage and commitments to net-zero timelines by 2050. Let us look at some of the barriers that could hold back the industry

1. High upfront costs: Renewable energy technology can be expensive to install and maintain, making it difficult for telecom companies to make the initial investment.
2. Technical challenges: Integrating renewable energy into telecom networks can pose technical challenges, such as balancing the irregular power output of renewable sources and ensuring reliable power supply.
3. Regulatory barriers: In some regions, there may be legal barriers or a lack of incentives for using renewable energy, making it difficult for telecom companies to adopt these technologies.
4. Technical expertise: Telecom companies may lack the expertise required to implement renewable energy solutions, making it challenging to integrate these technologies into their networks.
5. Competition for resources: The increasing demand for renewable energy by multiple industries can result in competition for limited resources and drive-up costs.

Conclusion

Sustainability has become a critical consideration in the design and implementation of networks, and it is crucial for 5G roadmaps to prioritize carbon reduction targets and sustainability goals. Failure to invest in sustainability could impact an operator's competitiveness in the long term. While there are barriers, end-to-end measures and collaboration among all actors are necessary to achieve sustainability objectives.

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Utpal Mangla is a General Manager responsible for Telco Industry & EDGE Clouds in IBM. Prior to that, he was the VP, Senior Partner and Global Leader of TME Industry’s Centre of Competency. In addition, Utpal led the 'Innovation Practice' focusing on AI, 5G EDGE, Hybrid Cloud and Blockchain technologies for clients worldwide.