Growing networks the smart way

Growing network traffic and subscriber numbers have resulted in higher carbon footprint and network costs for operators

April 30, 2010

•         Telecom operators increasingly recognize the need to reduce their environmental impact while pursuing business growth
•         New approach from Ericsson helps operators make better informed investments to minimize both carbon emissions and cost of ownership
•         Australian telecommunications operator Telstra – first to try the approach- learned of opportunities to reduce costs and carbon footprint while expanding its network

Growing network traffic and subscriber numbers have resulted in higher carbon footprint and network costs for operators. Operators are being challenged to respond to growing carbon emissions concerns, volatile fuel prices and potential added costs such as carbon taxes while expanding networks and achieving business growth.

Growing business can be supported by modernizing and optimizing networks, sharing assets and resources, and changing the energy mix.

To help operators deal with these challenges, Ericsson (NASDAQ: ERIC) is now offering a groundbreaking TCO2 approach that measures carbon emissions and uses the total-cost-of-ownership methodology. By assessing the best combination of investment options for optimizing energy efficiency, the TCO2 approach supports operators’ environmental and business objectives. It simply helps them save money while reducing the impact on the environment.

During 2009, Australian operator Telstra worked with Ericsson’s consultants to conduct a nationwide carbon and energy audit of its wireless network. Mike Wright, Wireless Executive Director at Telstra says: “This study confirmed the benefits that Telstra is achieving through initiatives that have already been implemented. The study also identified the opportunity for us to reduce CO2 emissions by up to an estimated 30 percent in the radio access network and an estimated 56 percent in the core network. We are continuing to work with our partners to identify further opportunities to reduce our carbon intensity levels, as we work to achieve our company-wide target to reduce our carbon emissions intensity by at least 10 percent by 2015.”

Håkan Eriksson, CTO at Ericsson says: “The TCO2 approach is vital when considering alternative network designs and power-saving features, evaluating capacity enhancements and minimizing environmental impact, not to mention when improving competitiveness. I believe that those players not using a TCO2 approach will be at a significant disadvantage.”

The development of this new approach is part of how Ericsson works to constantly increase focus on energy efficiency in our products and services portfolio, helping customers reduce their environmental impact and costs.