5G is set to elevate the industry’s green credentials but how realistic are GSMA’s and mobile operators’ sustainability claims?
The telecoms industry is promoting its green credentials, promising ever-larger energy savings once 5G networks become widespread. Yet telecoms is one of the most energy intensive industries, accounting for 3% of total global consumption. With the global climate crisis looming, it’s leading to calls for more focus on sustainability.
Bold promises to become greener have already been made by mobile operators across the globe. Deutsche Telekom has committed to net-zero by 2040, with 100% of its energy coming from green sources. Vodafone has pledged 100% of its electricity will come from renewables by 2025.
The GSMA is claiming 5G will amplify power savings further, with Nokia and Telefónica saying the next generation networks are up to 90% more energy efficient than 4G.
5G’s energy efficiency is being driven by factors including leaner radio frame structures, which means “less power needed in all conditions”, says Nicole Robertson, Vice President, ESG, Nokia. “It includes Massive MIMO technology which gives the existing and new spectrum greater capacity. It also brings further options to the current 5G spectrum which reduces the power consumed.”
But 5G technology will also result in a big rise in energy use that will be challenging to offset. Energy consumption is expected to increase 160% between 2020 to 2030, according to the Environmentally Sustainable 5G Deployment report.
At the same time, operators’ progress has so far been slow. “Private and enterprise 5G is complex, and while operators are changing their processes and deployment practices, it has been slow,” says Oliver Korfmacher, CTO for telecoms at Enea.
5G for sustainability
5G is a more energy efficient technology, but its use cases could encourage greater power consumption, says Kester Mann, Analyst at CCS Insight. “5G can encourage greater usage and that can have an impact on the environment.”
Ian West, Head of TMT at KPMG UK agrees, saying there is “a lot of ambiguity around the energy use implications of 5G at the broader network level”.
“Businesses and individuals will take advantage of data-heavy apps and services, but these are all more energy intensive,” says West. “If 5G becomes as pervasive and popular as expected, I believe that total power consumption will be greater than with 4G.”
However, at least some of this power use will be offset as networks become more automated and intelligent. For example, AI is being used in networks to save power when it’s not needed to optimise efficiency, says Dean Bubley, Director of Disruptive Analysis. In addition, he points out: “5G equipment has more silicon in it, which is better, and operators are looking into how to improve efficiency not just on the network, but for backhaul.”
The efficiency gains won’t necessarily be immediate; it can take time for the benefits of a new technology to be fully developed and deployed, says Steven Moore, Head of Climate Action at the GSMA. He points to progress already being made in the industry, such as green bonds issued by firms including Telefonica.
A number of energy saving measures have been built into the 5G standard, such as sleep or shutdown functions in the transceiver and a low-energy scheduler solution, Moore adds.
Green initiatives
More broadly, the industry is already embarking on a number of green initiatives. Mobile operators are currently one of the biggest purchasers of renewables, says Moore. “During 2021, 18% of operators’ total electricity consumption was sourced directly from renewable sources. BT Group exceeded its target with 139 of its top suppliers using renewable energy in 2019.”
Vodafone’s self-powering mast in partnership with Crossflow Energy shows how renewable energy can be applied to telecoms equipment. As well as helping to connect remote areas, the UK’s first live wind and solar-powering mast could help Vodafone meet its net zero goals, says Rebecca White, Commercial Director at Crossflow Energy.
Sustainability is reaching consumer hardware too. Last year, operators launched an eco-rating scheme focusing on the impact of producing, using, transporting and disposing of mobile phones.
Meanwhile, tariffs such as Orange’s Flex and Hey! offer a “fully carbon neutral” option for consumers. As of December 2021, Flex had passed 150,000 active customers.
Green initiatives can boost mobile operators’ revenue, since investors and subscribers are increasingly basing decisions on sustainability. “Nearly half of all subscribers now consider environmental sustainability an important factor when choosing a network provider,” says Akanksha Sharma, Global Head of ESG at STL.
Sustainability is currently a “small part” of consumer purchasing decisions, but this will grow, says Mann.
The future of green telecoms
Momentum is growing, but more needs to be done to improve the telecoms sector’s green approach. For example, the global diesel generator market in the telecom sector is on an upward trajectory, and is expected to reach $1.4 billion by 2030, says Rami Reshef, CEO of hydrogen fuel cell manufacturer GenCell. “As extreme weather such as heatwaves continue to pose a problem to society, telcos could start by looking at cleaner alternatives to diesel for their backup power,” he says.
Disclosure exercises such as The Climate-related Financial Disclosures (TCFD) framework – which encourages organisations to disclose their climate risks and opportunities – will compel firms to take action, says West. “It will help telecoms companies embed climate risks and opportunities in their overall business strategy and can assist with long term ESG planning.”
In order to save more energy and meet their targets, operators could also start to take things into their own hands by, for example, owning wind turbines. “This is the sort of thing cloud companies have done for a long time”, says Bubley, citing the example of firms building data centres in Antarctica.
At the same time, governments could start to incentivise more network and infrastructure sharing, Bubley predicts. “Having four separate networks with their own infrastructure and power supplies is not very energy efficient,” he points out.
As the telecoms industry continues to promote its green credentials, the environmental stakes are rising. It will become increasing important to look into the statistics, and mobile operators will need to demonstrate actual savings they have made, says Bubley. “If you are a large organisation with stakes in telecom companies, you will look into their annual ESG statements. There is a big push in the investment community for this to be audited properly.”