Sustainability in the telecom sector faces several significant challenges, including data gaps, lack of reporting and standards governing sustainability, and internal processes that were built without considering sustainability imperatives. Telecom companies currently need a holistic view of the Scope 2 and 3 emissions generated by their ecosystems of partners, vendors, OEMs, and the broader supply chain. Aging infrastructures with minimal modernization bring additional complexity, as do dynamics related to unmanaged fleets, hardware-intensive operations, and WFM (workforce management) struggles. Fortunately, telecom companies can rapidly progress on sustainability goals across the ten strategic focus areas below.
1. Monitoring and Reporting. Telcos, despite not being in the spotlight as much as other industries, must prioritize tracking sustainability as a core parameter. The mounting pressure around sustainability necessitates a fundamental upgrade in the ability to track and report carbon emissions. This will build the data management maturity required to continuously update operating models. Individual interventions are crucial, but they must be part of a larger strategy that begins with a holistic impact assessment and roadmapping. Investing in a robust impact accounting program will align sustainability reporting with emerging enterprise sustainability frameworks and empower telcos to take credit for their sustainability wins.
2. Data Centers. Moving to public clouds and away from underutilized, energy-inefficient data centers is one of the simplest ways for telcos to reduce their carbon emissions. Many telcos have already taken this step, making early moves toward simplified, virtualized data centers in the cloud for IT workloads; however, network workloads have still not completely moved into the cloud.
3. Network Infrastructure. The telecom sector’s asset inventory comprises mobile towers and fixed-line connectivity assets with active network components. The industry is already reducing resource intensity by replacing copper-based fixed-line connectivity with fiber optic cables. However, legacy connectivity assets cannot be completely phased out for multiple reasons, mainly because regulatory compliance does not allow telcos to migrate un-willing customers from copper to fiber products. This dynamic inevitably slows down network infrastructure conversion. Telcos will need to work with regulators to gain more flexibility to unilaterally move customers to more resource-efficient infrastructure or further incentivize customers to buy into these upgrades.
4. Network Technology. 5G is, by design, more energy efficient compared to previous generation networks (4G and earlier). Every network equipment provider is working on 3GPP (3GPP TR 22.882 Rls 19) standards to further enhance the energy performance of 5G networks. Because CSP network power consumption skews toward radio networks, moving RAN functions to the cloud can save energy. Decommissioning relatively inefficient legacy copper and 2G/3G mobile networks will further reduce network energy footprints. Depending on the customer traffic data and usage patterns, active network elements may be programmed to be put on “sleep mode” under certain conditions, driving additional energy savings.
5. AI for Asset Management. AI has near-boundless potential from base stations to maintenance trucks to improve the energy efficiency (and, critically, the cost efficiency) of all asset-intensive operations. AI-based optimization of resources and energy management in areas like server rooms will involve monitoring energy consumption, sending alerts, and optimizing performance to reduce carbon footprints. Predictive analytics and AI-based operations will also reduce truck rolls, improve field services and fleet management efficiency, self/auto-heal networks during outages, and reduce goods movement throughout the enterprise. As AI/ML solutions scale, they can also form the basis for new customer-facing solutions built around the demand for lower-emission telecom services (see #10).
6. Circularity. While the carbon footprint of devices like mobile phones and smart watches may seem minor compared to heavy equipment, these devices often rely on rare minerals that have a surprisingly significant impact. Demands for greater transparency on supply chain emissions are forcing a few device makers to pursue a more recycling-heavy approach to handsets and smart devices. Still, there is a long way to go to enable true circularity. In the near term, the industry can focus on making refurbished assets more attractive to consumers and designing new components with an eye on intelligent reuse. In the long term, telcos must build intricate new reverse logistics systems.
7. Smart Metering and IoT. Telcos can achieve new sustainability advantages by rethinking their relationships with their utilities. By implementing innovative IoT solutions, they can move toward more efficient on-demand or start-and-stop energy procurement models. Smart-connected servers, meanwhile, can further reduce internal energy demand. These interventions will also improve energy forecasting, achieving additional cost and carbon reduction benefits.
8. Ways of Working. Every screen or device an employee uses has monetary and sustainability costs. Telcos should focus on consolidating these devices as much as possible. GenAI-based unified command centers—along with unified 360-degree dashboards for enterprise customers, service teams, and partners—will reduce and consolidate screens and touchpoints.
9. Virtual SIMs. Despite the improved resource efficiency of virtual eSIMs, sixty percent of global mobile users are likely still on physical SIMs. Telcos should prioritize moving customers in all geographies toward eSIMs as much as possible.
10. Sustainable Product Strategy. Increasingly, voluntary and mandated demand for green telecom will create a new market for sustainable telecom products. Telcos need to envision new customer-facing offerings that quantitatively lower the indirect carbon emissions of their retail and commercial clients. Such offerings might include green mobile plans and device packaging, sustainably certified fabrication for network hardware, and connectivity solutions that help enterprises increase the energy efficiency of their data-intensive AI programs.
While most modern telecom companies are running environmental initiatives, these initiatives rarely significantly impact the ground. Because telcos are viewed as service-driven companies, they have largely avoided the carbon emissions spotlight placed on asset-heavy sectors such as hi-tech, manufacturing, energy, and utilities. They have also de-prioritized sustainability because they have other imminent problems to solve. However, the industry cannot avoid scrutiny forever. Companies that take a leadership role in sustainability – going well beyond a few metrics in an annual report – will be more agile and competitive in the long term.
