Summary

Wireless vendors have begun marketing their telecom gear (base stations) based on metrics such as carbon footprint and energy efficiency. End-users might see this as a "feel good" move.  Operators in emerging markets - where base stations may not have easy access to power - might see it as a necessity while those in mature markets simply want to trim their OpEx thanks to lower power consumption.

Analysis

"Green" was an unmistakable trend at this year's Mobile World Congress in Barcelona.  In a year where Al Gore won the Nobel Peace Prize, this might not seem surprising - but, it's about more than the environment.

As with most things wireless, Ericsson kicked off the trend: last year it began talking up its green corporate practices and the energy efficiency of its base stations.  Competitors followed up with more energy efficiency claims - energy efficiency equating to lower power consumption and lower carbon emissions.

Building on the hype of the popular press, it might seem like this focus is a fad.  It's not.

In emerging markets - think Africa and Southeast Asia - energy efficiency is a necessity; when solar panels or wind turbines are the sole source of energy, base stations must run as efficiently as possible. As operators in these markets look to expand their voice networks and add in data (3G), energy efficiency will only become more important.

In mature markets, energy efficiency is equally critical.  Operators in North America and Western Europe may have easy access to power, but this power isn't cheap.  To keep OpEx costs in check and ensure profitability, it's important for base stations to run as efficiently as possible.

On an operational level, wireless vendors are fighting the green battle on various fronts.  Efficient power amplifiers stretch energy input as far as possible.  Efficient cooling and heating mechanisms obviate the need for power-hungy air conditioning and heating. Remote radio heads put transmit and receive functions close to the antenna, avoiding energy loss down long cables.  Scheduling schemes can essentially shut down parts of the base station when not in use.

Yet, beyond the methods and the operator interests, telecom's green movement is being driven by another concern: regulation.  With an interest in the environment (and energy self-sufficiency) running high, it's not unreasonable to believe that government regulators will force operators to focus on their carbon footprints.  Operators know this and they're naturally looking for vendors to help them get ahead of the curve.

Peter Jarich consults with leading institutions through GLG

Peter Jarich, Research Director

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.