MTN Consulting has published an analysis of the relationship between traffic growth and energy consumption in telecommunications (telco) networks.
Key Findings:
The 30 telcos analyzed represent approximately 55 percent of the global market, based on revenues.
Traffic is rising faster than revenues. In 2023, the average telco carried 2.06 Petabytes of traffic per US$1 million in revenue, more than double the 1.00 Petabytes per $M recorded in 2019.
To accommodate this growth efficiently, telcos continuously seek ways to lower the cost of carrying traffic, with energy efficiency being a critical factor.
Energy Consumption Trends:
Between 2019 and 2023, network traffic among the 30 telcos increased at a Compound Annual Growth Rate (CAGR) of 19.7 percent.
In the same period, total energy consumption grew at a CAGR of 2.8 percent.
As a result, the energy consumption per unit of traffic significantly decreased: in 2019, telcos consumed 165.5 MWh per Petabyte, whereas in 2023, they consumed 90.0 MWh per Petabyte.
This equates to an annual improvement in energy efficiency (MWh per Petabyte) of 14.1 percent CAGR, meaning telcos needed 14.1 percent less energy per year to carry the same traffic load as the prior year.
Best and Worst Performers:
Biggest improvements in energy efficiency (MWh/Petabyte) since 2019 were observed in:
BT
Entel
Rogers
Tele2
Veon
Poorest performance in energy efficiency was recorded by:
Saudi Telecom (STC): increased its energy consumption from 90 MWh/PB in 2019 to 104 MWh/PB in 2023.
Vodafone: showed minimal improvement, lowering its MWh/PB ratio by just 3.8 percent YoY in 2023.
Climate and Sustainability Considerations:
A separate December 2024 study indicated that telco emissions per unit of revenue in 2023 were similar to 2019 levels.
Renewable energy usage remains low, accounting for only 20 percent of total energy consumption in 2023 — a disappointing figure for sustainability advocates.
Industry Implications:
Telcos and vendors are increasingly prioritizing energy-efficient technologies and network designs to reduce operational costs and environmental impact.
Vendors are using energy efficiency as a key differentiator in their product offerings, creating opportunities for further efficiency gains.
This report provides a positive outlook on telco energy efficiency improvements, even as broader sustainability challenges remain. The findings emphasize the need for continued innovation and investment in greener technologies to sustain efficiency gains while mitigating environmental impact.
TelecomLead.com News Desk
