How critical is energy efficiency for telecom operators and vendors?

Energy efficiency has become a crucial focus for operators and network vendors, driven by rising energy costs and the introduction of 5G technology.

Mobile network and energy use
Mobile network and energy use

Operator capex for the period 2024–2030 will reach $1.3 trillion. By the end of 2025, 5G connections will make up nearly a third of global mobile connections, with momentum continuing as over 80 operators in more than 60 markets plan to launch commercial 5G services. As of December 2024, 305 operators in 121 markets had launched commercial 5G mobile services. 5G subscriber base reached 2 billion at the end of 2024.

According to the GSMA Intelligence Network Transformation Survey, energy efficiency remains a top priority in the short-to-medium term. Two key factors reinforce this emphasis on energy efficiency for 2025 and beyond. First, financial considerations play a major role, as energy accounts for approximately 20 percent of an operator’s total operational costs.

Unlike other variable costs such as labor and site rental, which are expected to decrease due to virtualisation, AI, and site simplification, energy costs remain unpredictable and influenced by factors like coverage expansion, network layers, and new services. This makes energy efficiency a vital differentiator for wireless networks. Second, sustainability expectations from stakeholders continue to rise.

Investors favor green portfolios, younger consumers prioritize sustainability, and detailed Scope 3 emissions reporting is required across the value chain. In regions dependent on non-renewable energy, consumption significantly impacts emissions, making energy efficiency critical for reducing carbon footprints and meeting stakeholder expectations.

Maximizing energy efficiency while maintaining high-quality network service is a challenge for telecom operators as business demands and network traffic continue to rise. Despite diverse operational backgrounds, operators follow a structured approach to improving energy efficiency, tailoring projects to specific scenarios.

China Mobile leverages 5G-Advanced, open APIs, and AI-powered network planning to develop a clean energy society, with deployments ranging from outdoor users in Shanghai to indoor users in Shenzhen.

STC employs AI-based network planning and engineering to drive Saudi Arabia’s largest network expansion while committing to net zero by 2060, utilizing multi-dimensional network insights and service traffic identification.

Telkom Openserve implements an AI-based energy management system to address energy shortages in South Africa’s fixed networks, optimizing diesel, battery, and grid energy use based on network data, weather, and load shedding patterns.

Hong Kong Telecom integrates its data-driven network operational platform with open APIs to modernize network sites and support various vertical applications, such as unmanned drones for building inspections and emergency medical services.

Baburajan Kizhakedath

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