Most recently, the UK government released new Greater network sharing
‘Guidance on how to measure and report your There are already a number of network sharing
greenhouse gas emissions’. Adherence to the guidelines agreements in place across the mobile sector in the UK.
is currently optional, but we expect that it is likely to However, due to regulatory restrictions network sharing
become mandatory by 2012. In addition to this, new is limited to passive infrastructure components which
legislation is expected to focus on other environmental include equipment such as masts, power and air
issues such as water and land usage, air quality and conditioning. Recent agreements include:
bio-diversity.
P / A 6 3 8 A @ 7 3 @ 6 - 7 > 7 8 A @ ; 5 3 E ; 9 @ 7 6 3 @ 7 F I A D = E : 3 D ; @ 9
We also expect to see growth in the number of tax deal across Europe in March 2009.
breaks offered by the UK government associated with P - : 7 -
' A 4 ; > 7 3 @ 6 6 7 3 > ; E 7 E F ; ? 3 F 7 6 F A E 3 H 7 M 4 @
green initiatives such as green capital tax relief, green over ten years through decommissioning over 5,000
grants and R&D relief. However, in the context of future duplicate cell sites.
spectrum licence auctions, there is an opportunity to P ' A E F D 7 5 7 @ F > K ) D 3 @ 9 7 3 @ 6 -
' A 4 ; > 7 ; @ F : 7 . % : 3 H 7
take this further by linking licence costs with an announced a joint venture which is projected to save
operator’s green performance. This would mean that M ? B 7 D K 7 3 D
8
the stronger the operator’s green credentials, the
cheaper the licence would be. We anticipate that this Yet despite the significant cost reduction opportunities
would have a significant positive impact on the and associated environmental benefits from sharing
adoption of environmental policies at every level of the passive network components, further savings could be
organisation. made through sharing active infrastructure such as
antenna systems and channel elements. However, this
All this suggests that the companies that take action is not currently permitted by the Regulator on
today are likely to enjoy real competitive advantage in competitive grounds.
the future. However as a minimum, Telcos should use
the current CRC initiation period and Environmental From an environmental and cost perspective there is an
Reporting Guidelines voluntary phase to test and argument in favour of active infrastructure sharing.
influence metrics, reporting and policies before they are This would allow the industry to move away from
made mandatory and the penalties increase. 4 G ; > 6 ; @ 9 3 @ 6 ? 3 ; @ F 3 ; @ ; @ 9 6 G B > ; 5 3 F 7 @ 7 F I A D = E 3 @ 6
enable significant reductions in power consumption,
Cost sites and equipment, in addition to reductions in the
Reductions in emissions are often associated with cost associated with maintenance and upgrades.
reductions in cost and in the current economic conditions, F 3 B B D A J ; ? 3 F 7 > K M
? B 7 D @ 7 F I A D = B 7 D K 7 3 D F : 7
this makes a strong environmental policy a strategic savings could be passed onto consumers and/or
asset. To date, Telcos have made good progress in invested in more advanced and greener technologies.
reducing both their emissions and therefore also their
costs through initiatives such as: There are a number of potential models that could be
considered in the UK including:
P 0 A D = ; @ 9 I ; F : ? 3 @ G 8 3 5 F G D 7 D E F A 6 7 H 7 > A B ? A D 7 B A I 7 D
efficient equipment. P Three network operators: opportunities for
P . F ; > ; E ; @ 9 D 7 @ 7 I 3 4 > 7 7 @ 7 D 9 K F A B A I 7 D ? A 4 ; > 7 E F 3 F ; A @ E environmental and cost savings through reduced
P # @ 5 D 7 3 E ; @ 9 G E 7 A 8 F 7 > 7 5 A @ 8 7 D 7 @ 5 ; @ 9 3 @ 6 network equipment and associated support such as
videoconferencing. maintenance truck rolls, however significant
P * D A H ; 6 ; @ 9 2 F 3 = 7
4 3 5 = E 5 : 7 ? 7 E 3 @ 6 D 7 5 K 5 > ; @ 9 A 8 duplication still exists. Following the announcement
equipment. A 8 F : 7 B D A B A E 7 6 -
' A 4 ; > 7 ) D 3 @ 9 7 ; @ F 7 9 D 3 F ; A @ ; @ F : 7
P # @ F D A 6 G 5 ; @ 9 3 ; D 5 A A > 7 6 7 J 5 : 3 @ 9 7 E UK, this is the model that is most likely to emerge.
P + 7 6 G 5 ; @ 9 B 3 5 = ; @ 9 A 8 7 C G ; B ? 7 @ F 3 @ 6 E F 3 @ 6 3 D 6 ; E ; @ 9
power cables for products. P Two network operators: opportunities for
P . F ; > ; E ; @ 9 3 F A F 3 > 5 A E F A 8 A I @ 7 D E : ; B ? 7 F : A 6 F A E G B B A D F environmental and cost savings across the industry of
investment decisions. 3 D A G @ 6 M
? B 7 D K 7 3 D : 3 > > 7 @ 9 7 E ; @ 5 > G 6 7 F : 7 ; ? B 3 5 F
of reduced competition on innovation and prices and
However, there are still further opportunities to drive could require some degree of reorganisation of the
down emissions and reduce costs. They include greater incumbent operators, such as separating the sales and
sharing of networks, reducing power consumption, marketing functions from the network organisation to
improved field force effectiveness and reducing mobile ensure a level playing field. However, given the levels of
handset renewals. investment that would be released every year, the
emerging legislative framework around environmental
standards and the international footprint of the leading
operators in the UK, these challenges would need
8 Orange UK & T-Mobile
careful consideration but are not insurmountable.
UK – Combination of
Orange UK & T-Mobile UK:
Creating a new mobile
champion (September
2009)
© 2009 Deloitte LLP4 . All rights reserved.
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