MENA Telecom Operators Urged to Adopt Carbon Friendly Policies

A recently published report from international management consultancy firm Arthur D. Little and the Dubai Internet City (News - Alert) reportedly found that telecom operators in the Middle East and North Africa are not yet fully aware of the extent to which energy and carbon management will affect their future growth rates. The Dubai Internet City is the region’s biggest managed ICT cluster.  

Telecom service providers usually are the largest energy consumers. Most of their local power requirements cannot be satisfied with the local production. Many telecom operators in the MENA segment currently use carbon intensive diesel generation to meet 60 percent of their energy requirement.

The report, called “Telecom Operators in a Carbon Constrained World” illustrated a need for MENA telecom companies to concentrate on future carbon restrictions because the global industry is currently being constrained to reduce emissions by another 20 percent.

 “The impact of energy and carbon emissions on the environment is a global challenge,” Malek Al Malek, executive director at the Dubai Internet City, said in a statement. “We hope the report’s findings bring telecom operators one step closer to achieving sustainable development for the region’s economy. Partnering with Arthur D. Little on this sustainable development initiative – the first of its kind in the region – marks our belief that the ICT industry must take a leading role in innovation for the low-carbon economy.”

The report suggested that most local telecom operators still looks at energy efficiency initiatives as a business cost and are not yet mindful of the risk posed by carbon emissions to sustainable business growth.

Managing Director of Arthur D. Little, Middle East Thomas Kuruvila said that service providers were unaware of the cost potential in environment friendly steps. The industry’s operating costs were largely represented by energy  at 20 percent. If they decide to adopt steps that could cut costs by another 20 percent, this translates to a 4 percent cost savings and an improvement in operating profit. The report extrapolates that service providers could look to create 10% additional value by improving their energy efficiency.

The report gives suggestions for local telecom service providers to improve competitiveness by evolving environment friendly product strategies and incorporating green initiatives into their day-to-day activities.