Telco Finally Sees Returns in Sustainability
- By CDOTrends editors
- July 02, 2023
In a recent report titled "Green is good for business: making the financial case in telecoms," GSMA Intelligence, in partnership with Huawei, has unveiled new insights that showcase the financial benefits of investing in greener technologies for telecom operators. This study sheds light on the positive impact of sustainability investments, providing compelling evidence that embracing sustainability can improve the financial bottom line of telecom companies.
One of the common concerns surrounding sustainability investments is the fear of increased costs. However, the study challenges this notion, particularly in the telecom industry. It reveals that telecom operators can potentially reduce operational expenses (OPEX) by 4% through a 20% reduction in energy costs, achieved by implementing power-saving technologies such as 5G, artificial intelligence (AI), and lithium-ion batteries. These power efficiencies lead to cost savings and are a powerful incentive for operators to embrace sustainable practices.
Furthermore, the study highlights an important finding—customers worldwide are willing to support telecom operators that invest in sustainability. With climate change becoming a top concern for individuals globally, the study reveals that 30-60% of telco subscribers surveyed in 16 countries would be willing to pay more for mobile airtime tariffs certified as carbon neutral. This indicates a growing consumer preference for environmentally responsible services, presenting revenue opportunities for operators committed to sustainability.
"On costs, energy is still 20-40% of telco opex, and reducing this by 10-20% can feed through to an EBITDA uplift of 2-4%. On the revenue side, we see opportunities from green-linked tariffs, trade-ins, and the sale of renewables," explains Tim Hatt, head of consulting at GSMA Intelligence.
Beyond the financial gains for telecom operators, the study emphasizes their crucial role in achieving global decarbonization goals. Digital technologies, including those deployed by telecom operators, can enable as much as 40% of the CO2 savings required by 2030 from industries accounting for a significant portion of global carbon emissions.
By investing in sustainable practices and driving the adoption of digital solutions, telecom operators contribute to their financial success and support global sustainability efforts.
"Green is good for business: making the financial case in telecoms" is part of a comprehensive three-part series from GSMA Intelligence and Huawei that explores sustainability's technological and business implications in the telecoms industry. The research provides an evidence-based view on why embracing sustainability makes business sense and how it can be effectively implemented.
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