Introduction Figure 1. Breakdown of CO2 emission by End Users
Since the first commercial telephone services were
in the UK in 2007
7
set up in 1878 and 1879 on both sides of the
1%
Atlantic in the cities of New Haven and London,
3%
3%
the Telecommunications industry has continued to have
4%
a significant social, cultural and economic impact on
modern society. A recent World Bank report found that
35%
for every 10 percentage point increase in high-speed
internet connections there is an increase in economic 26%
growth of 1.3%.
2
Not only are high capacity fibre networks enabling
the world’s leading and emerging economies to
expand their markets across regions and timezones,
developing countries are also increasingly reliant on
28%
advanced mobile voice and data services to drive
traditional industries. In 2008, estimates placed
Business Exports
Transport Industrial process
the Telecommunications industry’s revenue at
Residential Other*
$1.9 trillion (USD).
3
These numbers are anticipated to
Public
significantly increase as data traffic is expected to grow
fivefold between 2008 and 2013.
4
8
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And because the Telecommunications industry provides ,+)*3
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products and services that enable greater efficiency
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through ever faster communications across an

increasingly interconnected world, global revenues 
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indicate that the industry already makes a very
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significant contribution to efficiency and cost reduction
All this suggests that Telcos must respond in two ways;
in every aspect of the economy. And this too is set to
firstly to demonstrate leadership by reducing emissions
rise in line with demand for these services.
in its own industry, in a way that can be evidenced and
builds trust. Some good progress has already been
Yet the central role of telecommunications in the global
made in this space but more is needed. Key initiatives
economy also represents a significant environmental
2 World Bank –
to date include the development of collaborative
challenge; in April 2009 OFCOM suggested that the
Information and working technologies, use of solar panels and wind
Communications for
total global carbon footprint of the ICT industry as a
turbines to power mobile base stations, development of
Development 2009: whole is in the order of 800 MtCO
2
e or approximately
Extending Research and
increasingly energy efficient network equipment and
2% of global emissions. Of this, the contribution from
Increasing Impact (2009) voluntary certification of progress made against key
global telecommunication systems – mobile, fixed and
sustainability metrics. However this topic is discussed in
3 Gartner – Dataquest communications devices – currently approaches
Insight: Global
more depth in our related paper ‘The line goes green:
230 MtCO
2
e or approximately 0.7% of global emissions.
5
Telecommunications Why environmental policies are critical to Telcos and
Market Take (June 2009)
And these numbers are expected to more than double
recommended strategies’.
by 2020.
6
4 Cisco – Visual Networking
Index: Forecast and
Secondly, Telcos must apply the learnings from reducing
Historically the perception has been that the
Methodology
emissions in their own industry to capitalise on the
2008-2013 (June 2009)
Telecommunications industry has low energy
opportunities to reduce emissions in other industries.
consumption. However, following the rapid expansion in
5 Eftec and Plextek –
While the economic downturn has led to the
the number of mobile base stations and abundant
OFCOM: Understanding
emergence of a global cost reduction agenda, and
the Environmental Impact
utilisation of servers, power consumption has risen
while the recent global drive to cut carbon emissions
of Communication
significantly and public awareness is now on the increase.
Systems, Final Report
gathers momentum, it seems that there is now a
(April 2009)
The run-up to the climate change conference in
unique opportunity for Telcos not only to take the lead
Copenhagen in December 2009 (COP15) is proving to
from an eminence perspective but also to open up
6 The Climate Group on
behalf of the Global
be a period of unprecedented focus on the challenges
significant new revenue streams. Experience in the
eSustainability Initiative
of climate change. At the UN Forum on Climate Change
Telecommunications industry suggests that reducing
(GeSI) – SMART 2020:
in New York in September 2009, the Airline industry
emissions is as much a behavioural challenge as it is
Enabling the low
carbon economy in the
became the first sector to announce a global plan to
a technology one.
information age
cut net carbon emissions by 50% from 2005 levels by
(June 2008)
2050. Furthermore, Japan has thrown down the
7 AEA Energy &
gauntlet to other industrialised nations by pledging to
Environment (AEA) –
… reducing emissions is
cut emissions by 25% from 1990 levels by 2020,
Emissions of carbon
dioxide, methane and
subject to a global deal at Copenhagen. as much a behavioural
nitrous oxide by NC
source category,
challenge as it is a
fuel type and end user
1990-2007 (March 2008)
technology one.
© 2009 Deloitte LLP
2
. All rights reserved. x
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