March 21, 2011
Energy costs represent one of the largest operating expenses for fixed and mobile telecommunications operators worldwide. In an effort to reduce energy expenses, in addition to lessening the environmental impact of network operations, many service providers are investing in more energy-efficient infrastructure equipment that will significantly reduce the power consumption of their networks, and thereby also decrease the effective carbon emissions associated with telecom networks. According to a recent report from Pike Research, capital investment in energy-efficient network equipment will reach $122 billion by 2014, representing 46% of the total network infrastructure market.
“The last generation of telecom networks was not always designed with energy efficiency in mind,” says Pike Research president Clint Wheelock, “but increasingly, energy is a top-of-mind priority for network operators around the world. The opportunity is largest for mobile network operators, which we expect will represent almost two-thirds of the green telecom market. This focus is especially relevant as mobile operators deploy 4G networks at scale over the next few years.”
Wheelock adds that, with a need to balance a surging subscriber base with environmental concerns, the Asia Pacific region will lead the way in green mobile network spending, representing nearly half the total spend by 2014. European operators are also highly focused on energy efficiency, and the region will amount to an estimated 26% of total green mobile CAPEX by 2014.
Pike Research’s report, “Green Telecom Networks”, analyzes the business opportunities, technology requirements, and environmental impacts of green telecom initiatives on a worldwide basis. The report examines the tools and practices available for fixed and mobile network operators to lower their operating expenses, reduce their carbon emissions, and improve the total cost of ownership for their networks. Detailed market forecasts include energy efficient network infrastructure capex spending, adoption of renewable energy power sources, and carbon emission reductions for fixed and mobile networks in addition to telecom data centers. Profiles are also provided for key network operators and vendors. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.pikeresearch.com or call +1.303.997.7609.