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Malaysian telcos need to be more green'

AvantiKumar | March 21, 2010
Sustainability is not a business cost: Nokia Siemens Network

KUALA LUMPUR, 21 MARCH 2010 -- Malaysian communications providers need to invest in sustainable infrastructure in order to yield greater profitability as well as lower total cost of ownership (TCO), according to networking firm Nokia Siemens Networks.

Recently appointed chairman of Nokia Siemens Networks Malaysia, Tan Sri Rainer Althoff, said the Malaysian government must lead the way to ensure that Malaysian communications service providers (CSPs) invest in sustainable network infrastructures to ensure greater profitability and lower TCO.

"The biggest environmental impact in a telecommunications network is energy consumption, which typically accounts for around 86 per cent of the total energy consumed by CSPs and up to 30 per cent of overall operational costs in developing markets (up to 10 per cent in mature markets)," said Althoff.

"CSPs that invest in energy efficient technologies are not only able to reduce their carbon footprint but, with lowered operational expenditure, they can also expect to see a positive impact on the bottom line," he said.

"For example, Nokia Siemens Networks calculates that base station sites within mobile networks account for around 80 per cent of carbon dioxide emissions," he said.  "And, with the expectation that electricity costs will shoot up by around 55 per cent in the next five years, CSPs must cut their reliance on non-renewable energy resources and address network inefficiencies."

"In recognition of this, Nokia Siemens Networks is committed to improving the efficiency of [the following mobile standards] GSM/EDGE and WCDMA/HSPA base station products by up to 40 per cent by 2012," said Althoff.  "It also aims for renewable energy such as wind and solar power to be the first choice for all remote base station sites by 2011."

He added that operators around the world and in Malaysia agreed sustainability was not a cost but an essential business move. "Recently DiGi Telecommunication announced that it will invest up to US$30.31 million (RM100 million) in its Deep Green programme in a bid to reduce carbon dioxide emissions by nearly half within four years. We applaud this initiative by DiGi and hope to see similar announcements in the coming year."

 
 Government commitment

We welcome the government's commitment to reduce Malaysia's carbon dioxide emissions to 40 per cent by 2020 compared with 2005 levels and strongly believe that the telecoms industry is uniquely placed to drive this," said Althoff.  "With the network being the largest contributor to an operators carbon footprint, it is worthy of note that there are currently very few sustainable mobile radio networks deployed in Malaysia. On behalf of Nokia Siemens Networks, I would like to call upon the government to take a lead to drive change in this substantial aspect. 

A low-carbon economy is not only beneficial for the environment, but also feasible and holds great potential for sustainable growth in all industries, said Althoff, adding that Nokia Siemens Networks has three key solutions to promote energy efficiency in CSPs' networks. "The company's Off-grid, Bad-grid and Modernisation solutions help to reduce operational expenditure for new and installed infrastructures as well as having a positive impact on climate change."

As consumers become more discerning in their brand allegiances, businesses today are presented with a clear opportunity," he said. "At Nokia Siemens Networks, we're committed to helping Malaysian service providers differentiate from their competitors and make a meaningful change to the world in which they operate. More than that, our goal is to ensure that they reap the financial rewards associated with having achieved a smaller carbon footprint.