However, a single national network operator is not
considered to be a viable option as the absence of
competition is very unlikely to generate the levels of
… 1 billion handsets are expected to be
innovation required to keep the UK mobile industry
sold this year … a focus on handset
competitive in the medium or longer-term.
recycling is merely addressing the
Reducing power consumption
Significant savings can also be made by reducing power
symptoms rather than the cause.
consumption on the network. Indeed Vodafone
estimates that the network accounts for 80% of its
carbon footprint and that three quarters of the
Improving field force effectiveness
network’s contribution is associated with powering
Optimising the field force that is responsible for
base stations.
9
Given that global IP traffic is forecast to
network provision, repair and maintenance represents a
grow fivefold between 2008 and 2013,
10
power
key opportunity for Telcos to achieve significant
consumption will become an increasing issue.
reductions in both emissions and operating costs.
Deloitte’s recent work with a global Telco has helped
The rollout of the fibre optic network represents a
deliver FTE reductions of 50% over 2 years, with a 7%
significant opportunity to reduce both the direct and
reduction in maintenance truck rolls. Key transformation
indirect costs of running the network. While total energy
initiatives included end-to-end process optimisation to
requirements associated with running a copper network
reduce sub-optimal or unnecessary engineering visits,
are higher, fibre networks also offer considerable cost
improved performance management, enhanced
and emissions savings through use of higher capacity
management information, improved multiskilling and
components, as well as advanced capabilities such as
better matching of supply with demand, rationalisation
remote diagnostics and configuration which minimise the
of the controls infrastructure and the implementation of
need to dispatch skilled engineers. As such, the emerging
a new mobility solution across the control and engineer
legislative framework is likely to encourage operators to
workforces.
consider investments in next-generation access
technologies from an environmental perspective, as well
Reducing mobile handset renewals
as from the perspective of customer demand for higher
Nokia has indicated that mobile phones are designed
capacity services.
to last for about 10 years. Yet in the developed world,
mobile phone users replace their handset every
And because significant progress has already been
18 months on average.
11
In fact, 555 million mobile
made by both operators and hardware manufacturers in
phones were sold globally in the first half of 2009.
12
reducing the power consumption of network equipment,
it is becoming increasingly challenging for operators to
To date the primary thrust of environmental policy has
justify investments in newer, more efficient equipment.
centred around a reduction in the use of harmful
Yet one of Deloitte’s observations from working with
components and on handset recycling. While good
clients in this area is that the benefits case for reductions
progress has been made in both these areas, the
in power consumption is generally understated. This is
number of handsets recycled remains relatively low.
because savings assessments typically only account for
the energy reductions associated with the primary
In a world where 1 billion handsets are expected to be
equipment. In fact, a saving of 1 watt in power
sold this year, and where saturation in Western Europe
consumption will typically deliver a total saving of
passed 100% in 2007,
13
a focus on handset recycling is
around 3 watts. This is because for every watt saved by
merely addressing the symptoms rather than the cause.
the new component, there is typically a further 1 watt
What is required is a radical reduction in the number of
9 The Economist – How
saved on air conditioning and another watt saved on
handsets upgraded every year. This would result in
Green Is Your Network?
the Uninterruptible Power Supply (UPS) that ensures
significant reductions in the number of handsets (December 2008)
continuous power to key components. As such,
manufactured, packaged, transported, and then recycled,
10 Cisco – Visual Networking
business cases for equipment upgrades that appear to
as well as helping mobile operators cut the cost of
Index: Forecast and
be weak on environmental grounds could be re-
handset subsidies. Methodology 2008-2013
examined using this approach.
(June 2009)
Some progress has been made in the UK in this space as
11 Ovum, Sally Banks –
The potential savings associated with reduced power
operators have tried to cut acquisition and retention Green Telecoms:
consumption are well illustrated by Deloitte’s recent
costs by offering more attractive 18 and 24 month
strategies and
implications for operators
work with a major retailer, headquartered in the UK, to
contracts, and by providing incentives for SIM-only
(December 2008)
reduce the energy consumption in its data centres. The
renewals. Furthermore, the introduction of handsets that
activities included infrared thermal analysis of the data
can be customised through downloadable applications is
12 Gartner – Competitive
Landscape: Mobile
centre floor space, optimisation of airflow and rack
making a positive contribution in this area by extending
Devices, Worldwide 1Q09
positioning, and dynamic management of power
the period between upgrades. The most mature example and 2Q09 (August 2009)
consumption. This resulted in initiatives which the
of this currently is the iPhone, although others like Nokia
13 The Economist – A special
company believes will reduce their IT power
are starting to launch handsets with similar capabilities.
report on telecoms in
consumption by up to 50%.
emerging markets:
Finishing the job
(24 September 2009)
© 2009 Deloitte LLP. All rights reserved.
v
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