As energy costs account for approximately 20 percent of telecom operators’ network operating expenses (opex) and are projected to rise, adopting strategies for building and maintaining green networks is essential, GSMA Intelligence report said.
The reality
The telecommunications industry is both a critical enabler of global digitization and a significant consumer of energy, accounting for about 1 percent of worldwide energy use. This translates to approximately 115 megatonnes of carbon emissions annually, highlighting the importance of adopting green strategies to reduce the sector’s environmental footprint.
Telecom networks are major energy consumers, with mobile networks using 168 Terawatt hours (TWh), fixed-line networks consuming 132 TWh, and data centers adding another 19 TWh for operators and 319 TWh for hyperscalers. Although the shift to renewables is progressing, they currently account for just 20 percent of the industry’s energy mix, heavily skewed by European operators with high solar and wind energy adoption. Conversely, reliance on diesel in off-grid regions of Africa, India, and Asia underscores the uneven transition to greener energy sources.
Improving energy efficiency is critical, as rising data traffic driven by 5G adoption and increasing digitization continues to demand more power in the Radio Access Network (RAN) and data centers. Despite these challenges, the industry has made notable progress, reducing the average power consumption per GB of data from 0.24 kWh in 2021 to 0.15 kWh in 2023. This is largely due to more efficient equipment, the replacement of lead-acid batteries with lithium alternatives, and the decommissioning of power-intensive 2G/3G networks in favor of more efficient 4G/5G technologies.
However, regional disparities in efficiency remain stark. For instance, Africa and parts of Asia experience double the global average energy consumption per GB due to older network technologies and diesel reliance. Additionally, while fixed-line networks have seen energy dividends by transitioning from copper to fiber, which is six times more power-efficient, similar improvements in mobile networks are urgently needed.
Achieving significant CO2 reductions by 2030, in line with net-zero targets by 2050, requires a dual focus: increasing the share of renewables and improving energy efficiency. A doubling of renewable energy use to 40 percent would still require aggressive efficiency measures, such as sunsetting 2G/3G networks, implementing AI for dynamic power management, and optimizing sleep states during low usage periods.
Operator strategies for going green
Operator strategies must focus on minimizing energy consumption and transitioning to sustainable energy sources while balancing operational efficiency and financial sustainability, according to the GSMA Intelligence report prepared by Tim Hatt, Head of Research and Consulting, and Emanuel Kolta, Lead Analyst, Network Sustainability and Innovation.
Telecom operators can adopt a structured, three-phase approach to achieve this transformation: realisation, planning, and execution.
Realisation: Assessing Readiness and Identifying Value Gaps
The realisation phase involves evaluating an operator’s current environmental performance and readiness for green network transformation. This phase ensures that sustainability goals are aligned with operational capabilities and identifies improvement opportunities. Operators should:
Conduct Maturity Assessments: Evaluate readiness at various layers of the network, identifying strengths and gaps to understand the potential for green initiatives.
Perform Value Gap Analyses: Regularly compare current environmental performance against desired goals to pinpoint areas needing improvement.
Map Value Streams: Identify inefficiencies, such as high energy use in data centers or suboptimal energy performance of 5G antennas, to optimize processes and achieve sustainability goals.
Planning: Strategic Design and Organization for Sustainability
The planning phase establishes a clear strategy, using metrics to evaluate potential solutions and ensure integration into the broader network evolution plan. Key initiatives include:
Network Design: Implement energy-efficient solutions, set measurable goals, and promote continuous improvement to integrate sustainability into core strategies.
Organizational Design: Define roles and responsibilities across teams to foster accountability for tasks like energy assessments and network optimization.
Delivery Optimization: Reduce emissions through efficient logistics, digitalize tools to cut waste, and leverage remote management for network operations.
By leveraging intelligent digital tools, such as planning platforms and digital surveys, telecom operators can enhance the efficiency of their planning processes while reducing carbon emissions.
Execution: Implementing and Monitoring Green Projects
The execution phase focuses on implementing green initiatives with a structured approach to ensure effectiveness and accountability. Key components include:
Fulfillment: Prepare resources and gather data on energy consumption and network performance to identify optimization opportunities. Mitigate risks associated with green practices through robust risk management frameworks.
Tracking: Use real-time dashboards to monitor energy consumption, emissions reductions, and resource usage, enabling continuous adjustments to improve performance.
Transparent Reporting: Share progress through detailed reports on KPIs related to energy use and emissions. Regular reporting fosters accountability and showcases achievements to stakeholders.
Data Analytics and Modelling: Leverage advanced analytics to identify trends, adjust network operations, and reduce energy consumption for specific workloads.
Benefits and Industry Implications
Adopting a systematic approach to green networks enables telecom operators to reduce their environmental footprint, optimize operational costs, and align with global sustainability goals. Realizing energy savings in high-consumption areas, such as the Radio Access Network (RAN), will be particularly impactful, as RAN operations account for 76 percent of energy usage.
Through maturity assessments, strategic planning, and precise execution, operators can drive long-term sustainable growth while meeting the rising demand for connectivity in a more eco-friendly manner.
For telecom operators, green networks represent not only an environmental imperative but also a strategic advantage. Integrating sustainability into network upgrades, deploying AI-driven energy optimization tools, and adopting KPI tracking frameworks for energy usage and emissions will be essential steps. By prioritizing renewable energy and more efficient technologies, telecom operators can reduce costs, enhance operational resilience, and play a pivotal role in global efforts to mitigate climate change.
Baburajan Kizhakedath
