B U S I N E S S C A S E
Green Mobile Network to Cut Carbon Emissions 42 Percent by 2013
Four incentives are driving mobile network operators (carriers) to develop greener mobile networks. The four incentives are:
• To reduce costs. Energy consumption is one of the biggest operating costs for both fixed and mobile networks.
• To overcome limited availability of reliable electricity. Many developing countries are high-growth markets for telecommunications, but they have limited reliable access to electricity. c
• To be more socially responsible. Many organizations have adopted corporate social responsibility initiatives with the goal of reducing their networks’ carbon footprints.
• To gain competitive advantage. Network infrastructure vendors are striving to gain competitive advantage by reducing the power requirements of their equipment.
All of these factors will continue to converge over the next several years, creating significant market potential for greener telecom networks.
Mobile network operators worldwide have embarked on bold initiatives to improve the energy efficiency of their wireless networks and reduce the carbon footprint and greenhouse gas (GHG) emissions associated with network operations. According to a Pike Research report (pikeresearch. com/), these green network initiatives will reduce network carbon emissions by 42 percent by 2013. Mobile operations in Asia Pacific, the leading region for the reduction of carbon emissions by mobile operators, will be Asia and Pacific Islands, followed by Europe and North America.
In 2010, Clearwire, the largest 4G service provider in the United States, announced that it has begun trials in Chicago of its first high-efficiency “green” base station cabinets. This new generation of base station cabinets is capable of achieving up to 90 percent reduction in electrical operating expenses and would not require the use of HVAC equipment in the majority of the company’s nationwide deployment. Following completion of the trials, the new base station designs are expected to be introduced throughout the Clearwire network.
Questions
1. Rank the four incentives according to how you believe they motivate a company to invest in greener IT.
2. Explain the reasons for your ranking.
3. Review predictions of global warming and related issues. Consider the expected surge in the use of 4G networks, which will increase electricity consumption to power the
networks and cool the equipment. Based on your research, estimate the impact on the environment if mobile network operators did not invest in greener networks.
4. Bottom line: Is it profitable for operators to go green? Explain.