Connections +
News

Research from Ovum looks at climate change from the telco CFO view

As environmental issues weigh on the public conscience and pocketbooks, telcos and their suppliers are debating the...


May 20, 2008  


Print this page

As environmental issues weigh on the public conscience and pocketbooks, telcos and their suppliers are debating their proper role, research firm Ovum says.

It adds that for telco CFOs, going green must serve the overriding goal of making money for their shareholders.

In a new report, Ovum analyst Matt Walker lists the three forces that will drive action. First, energy — primarily electricity — has significant direct costs for telcos.

Power, he estimates, currently accounts for between 2-3% of telcos’ operational spending (opex), but this varies significantly around the globe.

These costs are rising, in some cases dramatically, due to high-usage data centres and mobile network expansion, particularly into rural areas.

“Second, environmental and energy cost concerns give rise to a number of sizable business opportunities to service providers.” says Walker. Examples include video and audio-conferencing, international connectivity, Ethernet LAN/IP VPN (IP Virtual Private Network), storage, power line communications, storage, Radio Frequency Identification (RFID) tracking, and intelligent transport.

Third, says Walker, green is in: credible, sustained commitments by corporations to environmentally friendly practices can pay off with public goodwill.