Telecom operators in the Middle East and North Africa (MENA) have yet to fully realise how energy and carbon management will impact their future growth, according to a report released today by global management consultancy Arthur D. Little and Dubai Internet City, the region’s largest managed ICT cluster.
Telecom operators typically rank amongst top electricity consumers, and with regional power demands often outpacing production, MENA operators currently rely on carbon-intensive diesel generators for 60% of their electricity needs. The survey, ‘Telecom Operators in a Carbon-Constrained World,’ indicates a need for MENA telecom companies to pay greater attention to future carbon regulations as the global industry comes under increasing pressure to reduce emissions by a further 20%.
Malek Al Malek, Executive Director, Dubai Internet City, said: “The impact of energy and carbon emissions on the environment is a global challenge.  We hope the report’s findings bring telecom operators one step closer to achieving sustainable development for the region’s economy.
“The report identifies opportunities that telecom operators can explore to not only demonstrate their commitment to global sustainability but also incorporate energy and carbon management into their business models. 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.”
According to the report, most regional operators still view energy efficiency measures as a cost issue, and have yet to consider carbon emissions as a major risk to long-term business growth.
David Vassallo, Partner in Arthur D. Little’s Global Sustainability and Risk Practice, said: “While global telecoms and technology players such as British Telecom and Nokia are seeking proactive solutions to carbon and energy management, telecom providers in the MENA region still need to step up their game and address the opportunities and risks associated with a low-carbon business environment.”
Thomas Kuruvilla, Managing Director of Arthur D. Little Middle East, concluded: “I doubt operators are aware of the significant value creation potential in ‘green initiatives.’  Energy represents 20% of the industry’s operating costs, and the opportunity for a further 20% reduction represents a 4% cut in operating costs. Assuming a change of operating profit from 30% to 33%, the study finds that operators can expect 10% additional value creation by increasing their energy efficiency.”
The report offers recommendations for regional telecom operators to gain competitive advantage through developing green product strategies and integrating green initiatives into their operations.
Download the full Report from:
www.adlittle.com/telcocarbonstudy