Moderator: Bettina Tratz-Ryan, Research Vice President, Gartner Inc.
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1 Moderator: Bettina Tratz-Ryan, Research Vice President, Gartner Inc. Speakers: Robert Heffron, Utility Marketing Manager, Verizon David Lewis, Marketing Director, North America, Nokia Siemens Networks ATIS Webinar: Environment as an Economic Engine December 10, 2009
2 The Economy and the Environment Verizon Communications Initiatives 2008 For Verizon. Internal All Rights Reserved. Use PTEXXXXX Only XX/08
3 Verizon s s Environmental Impact Employ over 228,600 people worldwide Occupy more than 31,000 facilities Operate more than 53,000 vehicles Work with over 3,800 vendors Consumed 9.5 billion kwh of electricity and 59 million gallons of fuel in 2008 Collected over 17,000 tons of spent telecommunications equipment in 2008 Verizon Operations Center Basking Ridge, NJ 3
4 Network Equipment Initiatives 90% of All Power is Used in the Networks Hardware Replacement Real Estate Operational Improvements Sold or darkened facilities Space utilization and restacking Micro turbines 53,500 metric tons or 11,500 cars 19,000 metric tons or 4,200 cars 8,700 metric tons or 1,800 cars 7,300 metric tons or 1,600 cars 3,700 metric tons or 800 cars In 2009, All New Network Equipment Must Be 20% More Efficient 4 = 800 passenger cars per year
5 Fiber Systems Energy Reduction Initiatives Traditional DWDM Long-Haul Network 40km Term 40km 40km 40km 40km 40km 40km 40km 40km 40km Term Term Term Term Term Term Term 1310 repeater 1310 repeater 1310 repeater 1310 repeater Optical Amplifier-Enabled ULH Network Term Term Term Term 120km 120km 120km 120km 120km OA OA OA OA Term Term Term Term 5 Estimated Saving of 116 million kilowatts per year
6 Renewable Energy Fuel Cells Verizon Telecom Installed in 2005 in Garden City, NY Primary power at switching/training facility Largest installation in the country Equivalent energy needs of 1,000 households Emission reduction 5,000 metric tons Verizon Business Back up power trial at fiber regeneration site in Texas Two additional trial sites in Missouri Reducing batteries and diesel fuel 6
7 Renewable Energy Solar Verizon Wireless solar cell site in the California desert one of 8 such sites 7
8 Renewable Energy Geothermal Ground Source Heat Pumps Photo Source: Verizon Telecom Five COs in Upstate New York Energy Consumption Reduced by 55,000 kwh Emission Reduced by 43 metric tons Saves $141,000 per year 8
9 IT Initiatives Verizon Wireless Thin client computing No Local Processing or Storage Reduced Energy costs by 30% Reduced CO2 emissions by 6,400 metric tons Saved $1 Million Remote Computer Management Software to turn computers on and off remotely Reduced CO2 emissions by 3,200 metric tons Saved $500,000 9
10 Fleet Idling Reduction Initiative Idling Vehicles: Burn about 1 gallon of gas per hour Emit 20 times the emissions than a vehicle at 30 mph Use more fuel in 10 seconds than turning off and restarting the engine GPS Reporting Can: Reduce fuel consumption by 1.7 million gallons Reduce CO2 by 17.5 million pounds 10
11 Verizon s s Environmental Awards and Honors 2008 North American Telecom Services Green Excellence of the Year Award from Frost & Sullivan Awarded for our industry-leading environmental policies 100 Best Corporate Citizens 2009 Corporate Responsibility Officer Magazine 2008 ENERGY STAR Awards U.S. Environmental Protection Agency, U.S. Department of Energy Dow Jones Sustainability Index 2009 Member U.S. Environmental Protection Agency WasteWise Hall of Fame (2007) Tenth award in the program s 11-year history 11
12 The Green Power of Information and Communications Technologies (ICT) 12 ICT creates only 2% of the world s CO 2 emissions* ICT can reduce global carbon emissions by 15% and U.S. emissions by 22% by the year 2020* ACEEE indicates energy efficiency investments can provide up to one-half of the emissions reductions required by 2050 Broadband is directly linked to improved energy efficiency The savings can be realized by increased use of ICT applications such as: Smart motor systems Smart logistics Smart buildings Smart grids Dematerialization * Smart 2020: Enabling the low carbon economy in the information age The Climate Group, for the Global esustainability Initiative Total CO 2 Emissions 98% 2% All other industries and individual contribution ICT Contribution
13 Solutions Helping to Reduce U.S. Emissions Increased ICT use in the U.S. could cut annual CO2 emissions in the U.S. between 13 percent and 22 percent through 2020 Would save between $140 billion and $240 billion on fuel and energy Can reduce total U.S. oil consumption by 11 to 21 percent and lower oil imports by 20 to 36 percent Enabled by a national smart electrical grid, smart road networks, support for energy- efficient buildings and travel substitution *GeSI United States Report Addendum, SMART 2020: Enabling the low carbon economy in the information age (November 18, 2008) 13
14 Verizon and the 98% Opportunity One of most connected networks in world Global Public Internet Private Network Capability 220 customer data centers worldwide 5 managed hosting centers Virtual data service offerings Recognized leader in global security offerings 5 global security operations centers Managed and professional service capabilities Security Lab certification (ICSA Labs) professional service consultants Over 3700 networks managed Over 250,000 devices managed 42,000 cell sites in US Largest and most reliable 3-G broadband network in US 14
15 The Extended Enterprise Business, Industry or Community Ecosystem NETWORK CENTRIC SOLUTIONS Customers Telecommuting Partners Suppliers Telepresence Telemedicine Contact Centers Remote Workers Retail Locations Data Centers Branch Offices Distributors Traffic Management & Navigation Supply Chain Mgmt Headquarters Smart Buildings Smart Grids 15
16 Conferencing and Collaboration Tools Skip The Trip Not the Meeting Virtual meetings and distance learning can significantly reduce business travel T&E savings Lower energy use and greenhouse gas emissions Enhanced productivity Improved work/life balance Why Verizon Business? Audio, net, and video options IP network enables next generation telepresence capabilities Globally consistent product suite and customer experience Dedicated conferencing experts to design optimal solutions Millions of electronic meetings hosted each month 30+ years experience in conferencing services Did You Know? Video conferencing expends 500 times less energy than a 1,000 km (620 mile) business flight* 16 *Broadband Services: Economic and Environmental Benefits, American Consumer Institute, October 31, 2007
17 EDS Australia Sets Carbon Reduction Goals Conferencing and Collaboration Solutions Support the Initiatives EDS Australia IT Services Provider Global company with 45-year history Full range of IT services Travel is regional business unit s second largest contributor to carbon footprint Challenges Cut CO2 emissions 25% over a three-year period Change corporate culture Overcome geography issues Poor experience with video conferencing services Solution Verizon Business Conferencing Services» Enabled by the Verizon Private IP network» 24x7 user support Benefits Improved network connectivity across sites High-quality video conferencing user experience Rapid adoption of video conferencing technology Reduced business travel 17
18 DeMaterialization: Electronic Data Transfer and Storage IP technologies diminish the need for paper and packaging (dematerialization) Letters and Documents Compact Discs Photo Film and Processing , instant messages, and text messages Downloads Digital photos Environmental benefits Fewer trees required to make paper and packaging Reduce the energy, water, and chemicals required to bring paper to market Reduce need for landfill space Reduce costs associated with physical storage Why Verizon Business? Paperless billing and management options Verizon Enterprise Center EDI/Direct Data ebonding ITEMS* Data Storage Solutions Supply Chain Managed Services* Did You Know? If the average worker generated five fewer pages per year, 21 million trees would be saved** 18 * U.S. only **Broadband Services: Economic and Environmental Benefits, American Consumer Institute, October 31, 2007
19 Global Smart Grid Solution Security is designed into the Smart Grid and actively managed M S S S S S S Applications Smart Grid as a service Distribution automation as a Service Enhanced contact center Solutions for customer service Customers Home Energy Management Smart Building Solutions GREEN ICT Solutions Demand Response Utility Distribution & Substation Automation Synchrophaser Deployment Smart Grid ICT management Security for Grid domains Energy Trading Markets PHEV Support Partners Extend to applications layer Provide SI role for utility Integrated network solution Utilizing imbedded utility infrastructure 19
20 Summary 2% Efforts Renewable Energy Network Efficiencies Recycling/Waste Management 98% Opportunity Broadband Enablement Smart Solutions Carbon Disclosure Project participant since 2002, etree, GeSI, continue to enhance efficiency across the business Fuel cell, solar-power, geothermal and microturbine initiatives Reduce power consumption and use more energy efficient systems to remove components 18,000 tons of office paper/cardboard, 18,000 tons of old equipment, over 1 Million cell phones recycled Use global assets to reduce GHG emissions with network-centric ICT solutions Broadband enables smarter systems to improve efficiency and meet numerous consumer and business needs. Smart Grids, Smart Buildings, Smart Logistics all Flow from network centric solutions 20
21 Environment as an Economic Engine David Lewis Marketing Director Nokia Siemens Networks December 10, Nokia Siemens Networks. All rights reserved.
22 Environmental issues are center stage Investment community increased interest Customer expectations Leaders capitalize the value Demands of rural connectivity Corporations Increasingly tight laws and regulations Increasing pressure from NGO s Climate change resource scarcity 22 Nokia Siemens Networks. All rights reserved. Energy Solutions
23 Nokia Siemens Networks environmental message For Nokia Siemens Networks, ethical business conduct does not mean mere minimum legal compliance. As an industry leader, we aspire to be among the best in the world in corporate responsibility, actively promoting human rights and environmental protection through our products and solutions. Nokia Siemens Networks Code of Conduct Through our leadership and actions we demonstrate our commitment to environmental stewardship. Our ambition is to be recognized as the leading company in bringing sustainable communications solutions to the market. Environmental responsibility are ingrained in the company culture. This can only be achieved by real actions and commitments not green wash. 23 Nokia Siemens Networks. All rights reserved.
24 Green Consumer 59% said I like to try new technologies that help the environment 68% said I like to do business with companies that are environmentally responsible Source: Japanese government 72% said I resent companies that say they care about the environment but don t mean it More than 50% of consumers are more likely to by from companies with good environmental reputations 18% believe that telecommuting programs are a good environmental initiative OVUM RHK, 09/2008 EBrain Market Research National Technology Readiness Survey Fall 2007 (based on a random sample of 1,025 U.S. adults (18 years or older)) Consumer surveys 24 Nokia Siemens Networks. All rights reserved.
25 Broadband enables a low carbon economy Traditional work Example Each day 15km Home <-> Office Middle class car producing 170g CO2/km kg CO2 per year..saving kg CO2 Service Provider High speed broadband connection 8 hours per working home kg CO2 per year VDSL2 allows for comprehensive home working with > 99% CO2 savings compared to traditional work MLO: Multilayer Optimization 25 Nokia Siemens Networks. All rights reserved. CET: Carrier Ethernet Transport
26 Turning the Environment into an opportunity Our environment (=The Planet) is changing Business growth needs sustainability Corporate environment and consumers are changing Holistic approach in building environmental sustainability Life-cycle management the homework Energy saving is a big dollar item, but energy efficiency alone is not enough Environment is an opportunity telecom can make a positive impact across industries Drivers Strategy Today Tomorrow 26 Nokia Siemens Networks. All rights reserved.
27 Environment as an Economic Engine 27 Nokia Siemens Networks. All rights reserved.
28 Reducing our ICT CO 2 footprint Total CO 2 footprint from human activity CO 2 footprint of ICT CO 2 footprint of telecoms CO 2 footprint of radio networks 2% PCs, peripherals and printers Data centers 28% Telecoms infrastructure and devices Devices Fixed infrastructure 43% Mobile infrastructure Core nw % Radio networks (BTS sites: 78-89%) 40GtCO 2 e -70% Radio networks are a major leverage point Green Radio reduces the CO 2 footprint by 70% Sources: SMART2020 report (The Climate Group, 2008) Nokia Siemens Networks mobile network assessment 28 Nokia Siemens Networks. All rights reserved.
29 Opportunity to Act 29 Nokia Siemens Networks. All rights reserved.
30 Opportunity for Vendors and Operators 30 Nokia Siemens Networks. All rights reserved.
31 OPEX Savings Opportunity for ICT Accessible Market Estimate (multi $B) 15% Infrastructure (Installed base) 26% 59% Infrastructure (New deployments) OPEX (Energy relevant) Reduction of CO 2 emissions to preserve environment Increased need to reduce the OPEX of telecom sites Major thrust to cover new potential markets in rural and remote areas Grid connectivity in existing and new areas Energy efficiency = OPEX efficiency 31 Nokia Siemens Networks. All rights reserved. In mature markets, up to 10% of network OPEX is used on energy In developing markets, it can be from approx. 15% up to even 30% of networks OPEX for energy Fossil fuel prices remain volatile with high dependency
32 Economic Opportunities In the Network 32 Nokia Siemens Networks. All rights reserved.
33 Environmentally sustainable development Minimize Footprint Combine Environmental and Business Benefits Maximize Positive Impact Expansion & Innovations Use of Renewable Energy Smart infrastructure BTS Site Solutions Energy Solution 33 Nokia Siemens Networks. All rights reserved. Energy Efficient Networks Flexi Base Station Solutions BCS Solutions Network Planning Network Operations
34 Operating radio the green way Transmit more on same spectrum Throughput Switch down during low traffic x 10 HSPA LTE Better performance per site More coverage with less sites Nokia Siemens Networks. All rights reserved.
35 Optimizing Transport for Energy Savings L3/IP L2/Ethernet L1/Optical 1 kw for 100 Gbps 0.5 kw for 100 Gbps 0.04 kw for 100 Gbps Power consumption savings with MLO 1,4 Mio kwh Non Optimized IP/DWDM 0.63 Mio kwh 55 % IP/DWDM and Carrier Ethernet optimization European operator case study, 2008 Rebalance the traffic in L1/L2/L3 network processing layers for optimum network performance and efficiency 35 Nokia Siemens Networks. All rights reserved.
36 Life-cycle thinking for Sustainability Raw materials Supplier Network Management Manufacturing Reuse Recovery Recycling Disposal Design for Environment Logistics Use Own operations 36 Nokia Siemens Networks. All rights reserved.
37 How to build greener mobile networks Planning and Consulting Services Mast sites 65% Switch sites 21% Corporate sites 12% Maintenance vehicles 1% ~ 86 % of a Mobile Operators Energy is used by the Network Retail 1% Reduce the number of BTS sites Reduce energy consumption per site Use renewable energy sources Solar cells, wind and hybrid solutions on site Green energy: hydro, wind and bio generated grid electricity Simplify end-to-end transport solution (mobile access-backhaul-core) *Source: ABI Research 37 Nokia Siemens Networks. All rights reserved.
38 Walking the Talk Energy use in our facilities 50% green electricity used for sites and offices in 2010 Sites & offices energy efficiency improved by 6% in 2012 (EU target 5%) Travel & fleet 20% less miles by end of 2009 Renew car-benefits Reduce CO 2 emission level of new cars on service fleet to 120g/km in 2010 Supply chain & logistics Promote energy efficiency to reduce CO 2 emissions in our supply chain Implement Green logistics concept by end of 2009 NSN CO2 Footprint CO2 Emission (Mega tons) % Product footprint based on average product lifetime Product usage Own operations % 38 Nokia Siemens Networks. All rights reserved.
39 Energy Solutions: PRODUCT Portfolio Mobile/Fixed Equipment Energy Saving Site Solution Products Renewable Energy Products Services focus for Energy Savings Flexi BTS/eNB Battery Cooling Systems Heat exchange systems Solar Panels Green Energy Control Consultancy Services 1H 10 Converged Core Passive Cooling Material Outdoor Cabinets Wind Turbine Battery Banks Project Management Services OBS Aircon (free cooling / heat exchange) Integrated shelters Remote Monitoring Solution Network Planning & Optimization Broadband connectivity Solutions Generator Construc tion Works Telecom Impleme ntation Customer Logistics Operation & Maintenance TODAY / Ready for Launch PLANNED Customer Trainings 2010 Hardware Services 39 Nokia Siemens Networks. All rights reserved.
40 Environmental solutions as an Economic Opportunity Thank You 40 Nokia Siemens Networks. All rights reserved.
41 Moderator: Bettina Tratz-Ryan, Research Vice President, Gartner Inc. Speakers: Robert Heffron, Utility Marketing Manager, Verizon David Lewis, Marketing Director, North America, Nokia Siemens Networks ATIS Webinar: Environment as an Economic Engine December 10, 2009
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