{"id":515395,"date":"2023-11-10T16:17:43","date_gmt":"2023-11-10T16:17:43","guid":{"rendered":"https:\/\/www.capgemini.com\/au-en\/?p=515395&#038;preview=true&#038;preview_id=515395"},"modified":"2025-04-03T04:07:11","modified_gmt":"2025-04-03T04:07:11","slug":"for-telcos-reaching-net-zero-means-mastering-energy-efficiency","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/au-en\/insights\/expert-perspectives\/for-telcos-reaching-net-zero-means-mastering-energy-efficiency\/","title":{"rendered":"For telcos, reaching net zero means mastering energy efficiency"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>For telcos, reaching net zero means mastering energy efficiency<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2023\/11\/Capgemini_Expert-perspectives_For-telcos-reaching-net-zero-means-mastering-energy-efficiency.jpg?w=960?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Capgemini<\/h5><h5 class=\"blog-date\">18 Feb 2022<\/h5><\/div><\/div><div class=\"brand-image\"> <\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/au-en\/insights\/expert-perspectives\/for-telcos-reaching-net-zero-means-mastering-energy-efficiency\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/au-en\/insights\/expert-perspectives\/for-telcos-reaching-net-zero-means-mastering-energy-efficiency\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\">Find out how telcos are leveraging technology to reach their net-zero targets.<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<h3 class=\"wp-block-heading\" id=\"h-pulled-in-two-directions\"><strong>Pulled in two directions<\/strong><\/h3>\n\n\n\n<p>Over the next five years, energy efficiency will become a core focus in the telco industry, as two sets of forces pull in opposite directions. First, energy needs will rise. A phenomenal rise of data and energy-hungry tech will continue to drive energy usage, which already constitutes&nbsp;<a href=\"https:\/\/www.gsma.com\/futurenetworks\/wiki\/energy-efficiency-2\/\">20 \u2013 40% of telco OPEX<\/a>. Second, industries around the world are beginning to respond in earnest to calls for more sustainable practices, which are coming not just from governments and the public, but increasingly from enterprise clients. It\u2019s no wonder that&nbsp;<a href=\"https:\/\/www.gsma.com\/betterfuture\/wp-content\/uploads\/2021\/04\/Mobile-Net-Zero-State-of-the-Industry-on-Climate-Action.pdf\">upwards of one-third of operators<\/a>&nbsp;have committed to net-zero goals. Telcos that fail in this challenge will soon find themselves operating with higher costs, degraded reputations and fewer clients. But the opportunity for those who successfully increase their energy efficiency will be profound. With enviable cost savings and well-earned ESG status, these telcos will operate with a powerful competitive advantage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-exponentially-increasing-data-needs\"><strong>Exponentially increasing data needs<\/strong><\/h3>\n\n\n\n<p>Data has been on the rise for years, and will continue accelerating exponentially in the near future. Technologies such as holograms, video-led digital experiences and new, digitally-generated realities such as the metaverse will require data on a scale that dwarfs anything we\u2019ve seen. Even basic services will become increasingly data-heavy. Worldwide, data usage of average mobile subscribers is expected to increase from the&nbsp;<a href=\"https:\/\/www.ericsson.com\/en\/reports-and-papers\/mobility-report\/dataforecasts\/mobile-traffic-forecast\">current average of 11.4GB\/month<\/a>&nbsp;up to&nbsp;<a href=\"https:\/\/www.statista.com\/statistics\/1100854\/global-mobile-data-usage-2024\/\">34 GB\/month by 2025<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.ericsson.com\/en\/reports-and-papers\/mobility-report\/dataforecasts\/mobile-traffic-forecast\">53 GB\/month<\/a>&nbsp;by 2027. Although&nbsp;<a href=\"https:\/\/www.nokia.com\/about-us\/news\/releases\/2020\/12\/02\/nokia-confirms-5g-as-90-percent-more-energy-efficient\/\">5G is proportionally more energy efficient than 4G<\/a>, that difference will be swamped by the amount of data surging through networks. Additionally,&nbsp;<a href=\"https:\/\/energydigital.com\/technology-and-ai\/5g-inherently-more-energy-consuming-4g\">5G sites require more energy than their 4G equivalents<\/a>, and 5G depends upon large numbers of closely-linked data stations. Today telcos are consuming between&nbsp;<a href=\"https:\/\/www.gsma.com\/futurenetworks\/wiki\/energy-efficiency-2\/\">2 and 3% of the world\u2019s energy<\/a>. Consumption will rise over the coming years; there\u2019s little doubt of that. Telcos would be wise to put their energy efficiency strategy into action before this rise in data and energy becomes unmanageable.<\/p>\n\n\n\n<p>And many are doing just that. A recent GSMA survey of mobile operators found that&nbsp;<a href=\"https:\/\/www.capgemini.com\/service\/telconetzero\/\">92% rated energy efficiency and sustainability as very or extremely important<\/a>. But how to make that change is another matter. New science-based target initiatives (SBTi) standards limit offsetting carbon to just 5%. To move beyond that requires the analysis of large amounts of data to identify critical network weaknesses, but for most operators it is precisely these capabilities that are incomplete. In fact, many active and passive network equipment elements are not currently set up to measure energy consumption, let alone optimize it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-where-to-start\"><strong>Where to start<\/strong><\/h3>\n\n\n\n<p>The number one place to look for improvements is in the networks. Network energy usage swallows up&nbsp; a huge amount of a mobile operators\u2019 OPEX, and&nbsp;<a href=\"https:\/\/www.mobileworldlive.com\/blog\/intelligence-brief-in-focus-green-transformation-and-network-sunsets\">70-90 % of that energy is consumed by RAN<\/a>. These massive networks were built to maximize connectivity, not to minimize energy usage. And that means plenty of opportunity to go back in and make improvements.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\" id=\"attachment_690237\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/02\/Picture2.jpg\" alt=\"\" class=\"wp-image-690237\"\/><figcaption class=\"wp-element-caption\">From our white paper, 5G Network Energy Efficiency<\/figcaption><\/figure>\n\n\n\n<p>Some telcos have begun to find ways to cut the emissions from their networks. Our team recently worked together with one industry leader on&nbsp;<a href=\"https:\/\/capgemini-engineering.com\/uk\/en\/industries\/communications\/marconi-project\/\">a project to increase spectral efficiency<\/a>. This project has demonstrated that through AI based RAN optimization, there is strong potential to&nbsp; reduce the number of sites and lower emissions. Other telco players have found&nbsp; success implementing remote sites driven by self-sufficient renewable energy sources \u2013 solar, wind and hydrogen. Vodafone, for example, has been launching eco towers across the UK, and Telia has launched a self-sufficient tower in the&nbsp;<a href=\"https:\/\/www.eltek.com\/in\/insights\/spring-will-be-greener-at-trollstigen\/\">scenic Trollstigen region<\/a>&nbsp;to address the coverage need in the remote but trafficked area.&nbsp;<\/p>\n\n\n\n<p>The transition from 4G to 5G also provides an interesting opportunity to optimize for energy saving. Many operators are in the midst of sunsetting their 2G and 3G networks, which is beneficial from an energy efficiency perspective, especially when equipment can be reused or recycled. A few additional steps operators might take include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Modernizing the network across all network nodes (especially transport, data-center and RAN)&nbsp;<\/li>\n\n\n\n<li>Implementing energy measurement and saving features, such as&nbsp;<a href=\"https:\/\/www.ericsson.com\/en\/blog\/2022\/1\/tackling-the-hot-topic-of-global-energy-consumption-for-mobile-networks\">AI powered MIMO sleep mode<\/a>,&nbsp; and in turn also improve network performance&nbsp;<\/li>\n\n\n\n<li>Selecting virtualization-based architecture across network architecture and virtualized-RAN architecture&nbsp;<\/li>\n\n\n\n<li>Utilizing the AI\/ML concepts and O-RAN based architecture to improve network efficiency&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Nokia and Telef\u00f3nica have made great strides in the last category, and are&nbsp;<a href=\"https:\/\/www.telefonica.com\/en\/communication-room\/nokia-and-telefonica-to-define-5g-network-evolution-with-agreement-to-evaluate-4-5g-pro-and-4-9g-technologies\/\">working together to build green 5G networks<\/a>, as well as developing smart energy network infrastructure and AI \/ ML technologies to improve sustainability and performance. Despite traffic tripling since 2015, Telefonica su<\/p>\n\n\n\n<p>cceeded in reducing their energy consumption last year by 1%. Ericsson has also had successful trials on the application of reinforcement learning (a type of machine learning) to remote electrical tilt of antennas, resulting in a 20% decrease in downlink (DL) transmission power, without affecting performance. And the trend is spreading. Research finds that&nbsp;<a href=\"https:\/\/www.globenewswire.com\/news-release\/2021\/11\/02\/2324977\/0\/en\/Telco-industry-sees-AI-as-key-to-cutting-energy-demand-from-rising-internet-traffic-Nokia-GSMA-research.html\">fully half of CSPs expect to save 10 \u2013 20% in energy costs<\/a>&nbsp;in the coming years \u2013 that\u2019s 50% of CSPs that will be operating with significantly lower costs, and with a powerful sales advantage.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-triple-bottom-line\"><strong>The triple bottom line<\/strong><\/h3>\n\n\n\n<p>Tackling inefficiency in networks is a crucial step, and many telcos already have a strategy in place. Where they face difficulty is primarily in tracking and measuring their progress along their net zero roadmaps. In addition to reducing their own carbon footprints, CSPs need to develop greener services and products in order to reduce their scope-3 emissions. These scope-3 emissions are looming large on the horizon \u2013 accounting for around 75% of the carbon footprint of a typical telco,&nbsp;<a href=\"https:\/\/www.afr.com\/companies\/telecommunications\/telstra-to-halve-scope-3-emissions-20211207-p59fkk\">according to some estimates.<\/a>&nbsp;They will require impressive data capabilities and new levels of industry collaboration. Let\u2019s not fool ourselves. Reaching net zero will not be an easy task, for mobile operators, or other companies, governments or private individuals. Lasting change depends on a mindset change in all layers of the organization. The benefits are a triple bottom line&nbsp; \u2013 bringing value to telecom operators, customers and our shared environment.<\/p>\n\n\n\n<p>The fact is, what you can\u2019t measure, you can\u2019t manage. That\u2019s where Capgemini\u2019s capabilities are playing a crucial role in CSPs\u2019&nbsp;<a href=\"https:\/\/www.capgemini.com\/service\/telconetzero\/?utm_source=linkedIn_showcase&amp;utm_medium=social&amp;utm_content=tme_grouporganic_web-preview_report_netzero&amp;utm_campaign=other_telco\">journey to net zero<\/a>. To learn more about the ways we can help you leverage your data and equipment to reduce emissions, contact us below. With the power of intelligent platforms, the future of telecommunications will be efficient, sustainable and bright.<\/p>\n\n\n\n<p><strong><em>#TelcoInsights<\/em><\/strong><em>&nbsp;is a series of posts about the latest trends and opportunities in the telecommunications industry \u2013 powered by a community of global industry experts and thought leaders.<\/em><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-wrapper-people-slider section section--expert-slider wrapper-people-slider undefined\"><div class=\"container\"><div class=\"content-title\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Authors<\/h2><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/05\/cv_picture-1.jpg\" alt=\"Ane-Marte Weng\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/anemarteweng\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Ane-Marte Weng<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Expert in 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Capgemini<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/vincentdemontalivet\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">Vincent leads the Global Sustainability Practice for Data &#038; AI Portfolio along with North America Sustainability GTM.\nWith a background in Sustainability Strategy, Engineering and Architecture, Vincent has been instrumental in driving sustainability digitalization efforts and transformation\nprograms within major organizations across industries while 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This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>For telcos, reaching net zero means mastering energy efficiency - Capgemini Australia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.capgemini.com\/au-en\/insights\/expert-perspectives\/for-telcos-reaching-net-zero-means-mastering-energy-efficiency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"For telcos, reaching net zero means mastering energy efficiency\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.capgemini.com\/au-en\/insights\/expert-perspectives\/for-telcos-reaching-net-zero-means-mastering-energy-efficiency\/\" \/>\n<meta property=\"og:site_name\" content=\"Capgemini Australia\" \/>\n<meta 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