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Eco-Innovation:
Transforming Communications




Marco Malfavon
Andicom 2009
Cartagena, Colombia
Eco-Innovation: Alcatel-Lucent’s vision




2 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009   All Rights Reserved © Alcatel-Lucent 2009
Eco-sustainability: Why it matters




                                      Customers


  Legislation                                                              Investors
                                        Eco-
                                    sustainability



             Operational                                              Brand
               Costs




                                                                                                                           Source: BBC News - How the world is changing


3 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009       All Rights Reserved © Alcatel-Lucent 2009
Eco-sustainability: Risks and rewards



                                                                                     REWARDS
                               Damage image
                               & reduce brand                                                                     Increase
                                    value                                                                      employee and
                                                                                                                 customer
                                  Lose business                                                                 satisfaction

                                      Get hit by                                                                Capture new
                                      regulation                                                                opportunities

                                                                                                             Increase profits


                              RISKS
 4 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009   All Rights Reserved © Alcatel-Lucent 2009
The bad news: ICT is a major polluter

                                             ICT today: 2% of global emissions…


                                                                ual
                                                       s -a s-us
     Gtons CO2




                                        sin       es                       1.4

                                  If bu                 0.8
                            0.5
                                                                                                                        Zero Growth Line

                          2002                         2007                2020




Source: GeSI – SMART 2020: Enabling the Low Carbon Economy in the Information Age

5 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009    All Rights Reserved © Alcatel-Lucent 2009
The good news: we can reduce…
… and help others reduce their impact

                  ICT today: 2% of global emissions…
with an opportunity to make tremendous impact on the remaining 98%

                                                                 ual
                                                        s -a s-us                                                                  We lower our impact
      Gtons CO2




                                            nes
                                                                            1.4

                                   If   busi
                                                         0.8                                                             -0.9
                             0.5
                                                                                                                                Zero Growth Line

                           2002                         2007                2020




                                                                                                                                   We lower impact from
                                                                                                                                   other industries

                                                                                                                         -7.8

                                                                                                                          Indirect benefit is more than
                                                                                                                          10 times our target footprint
Source: GeSI – SMART 2020: Enabling the Low Carbon Economy in the Information Age

 6 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009    All Rights Reserved © Alcatel-Lucent 2009
Transforming communications for a sustainable world




                                    Direct impact: Use less energy & fewer resources
                                    Holistic, end-to-end network approach to eco-sustainable communications




                                             Indirect impact: Less carbon, more opportunities
                                             Innovative solutions that help make your customers greener



                                                  Vendor choice: Work with companies who ‘get
                                                  green’
                                                   Choose vendors with green DNA – and solutions that prove it




7 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009   All Rights Reserved © Alcatel-Lucent 2009
Direct impact: Use less energy & fewer resources




                                                          Use                                Network &
                                                        greener                              operation
                                                       equipment                            optimization

                                                  • Moore’s law                         • Optimized
                                                    extended: latest                      architecture
                                                    generations are
                                                    more efficient                      • Greener operations

                                                  • Heat and power                      • Alternate
                                                    management                            operational models



                             Power represents 4-10% of network OPEX

8 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009   All Rights Reserved © Alcatel-Lucent 2009
Equipment
                                                                                                                            Equipment        Optimization
                                                                                                                                             Optimization


Zoom in using greener equipment


      Key areas                                                            Drivers                                          Benefit Examples


                                             Higher density/lower consumption
   Invest in                                 New features                                                                      25-70% power
  innovation                                 Life cycle management (reuse,                                                         saving
                                             remanufacture, recycle)




  Optimize                                                                                                                    Green energy
  heat and                               Smarter cooling (up to 50% power saving)                                            2-4 years payback
   power                                 Alternate power (e.g. solar or wind+solar)                                           for 35% of radio
 management                                                                                                                         sites



                     46% of the $277 billion global telecom infrastructure market by 2013
                                 will be environmental-friendly equipment
                                                                                                                             (Source: TMCnet report, June 2009)

9 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009        All Rights Reserved © Alcatel-Lucent 2009
Equipment
                                                                                                                           Equipment   Optimization
                                                                                                                                       Optimization


Zoom in optimization


    Key areas                                                           Drivers                                           Benefit Examples

                                          Network optimization/transformation
                                          reducing footprint, optimizing site usage                                         Mixed macro/
 Architecture                                                                                                             femto cells: -70%
                                          Self-Optimizing Network: LTE
                                                                                                                             RAN power
                                          Towards High-Leverage Network


                                         Avoid on field technician & travel-induced CO2
                                         generation                                                                       Micro-trenching:
    Processes                            Eco-deployment                                                                       -40% non-
                                                                                                                          renewable energy
                                         Sustainable power consulting/benchmark



                                          Sharing (site, RAN, duct)
  Operational                             Managed operation/outsourcing for critical                                          -40% OPEX
    models                                mass




10 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009     All Rights Reserved © Alcatel-Lucent 2009
Indirect impact: Help your customers ‘burn’ less


    Key areas                                                           Drivers                                           Benefit Examples

                                                                                                                          UK: if 5m people work@
                                                                                                                          home:
 Travel less,                             Teleconferencing & collaboration                                                • 8 m tons CO2 / year
communicate                                                                                                               • 1.4% UK total emissions
                                          E-services (e-gov, e-health)
    more                                                                                                                  • 170 m € eco-
                                                                                                                          compensation


                                                                                                                              Digital books,
                                         Network storage and distribution                                                   newspapers, photos,
Virtual media                            Software as a Service                                                                 music, films,
                                                                                                                             ‘paperless’ office


                                                                                                                          Buildings generate 40% of
                                                                                                                           global CO2
  Monitor and                             Smart utilities
                                                                                                                          Smart buildings: 1.7 b tons
    Control                               Smart transportation                                                             CO2 potential
                                          Smart buildings                                                                 Ex: Hampshire hotels:
                                                                                                                          -40% electricity bill


                                          Enabled by telecom networks and services
 Source: Alcatel-Lucent analysis of Smart 2020 data and Bell labs

11 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009     All Rights Reserved © Alcatel-Lucent 2009
Vendor choice: Work with companies who ‘get green’




 Walking the talk
    • Committed to reducing total CO2 emissions from facilities by 50% by end of 2020
    • Global Environment, Health and Safety Management System
    • Promoting eco-responsibility company-wide
    • Require that our suppliers comply with Alcatel-Lucent environmental policy


 Longstanding eco-partnerships
    • Member of the United Nations Global Compact
    • Active member of the Global e-Sustainability
    • Actively engaged with customers, standards bodies and industry consortia




12 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009   All Rights Reserved © Alcatel-Lucent 2009
Eco-innovation: Alcatel-Lucent’s commitment
                                                                               Increasing energy efficiency / power performance of our products


                                                                               Products and solutions ready for renewable energy sources


                                              Helping
                                               Helping                         We design and optimize environmentally efficient networks
                                              service
                                               service
                                            providers be
                                            providers be
                                                                               Sustainable end-of-life solutions tailored for your business needs
                                              greener
                                              greener

                                                                               Our lifecycle approach: eco-sustainable solutions for our customers
 Transforming
communications
                                                                               Bell Labs: innovative, eco- friendly and energy-efficient technologies
     for a
  sustainable
     world                                       Enabling
                                                 Enabling                      Intelligent applications to reduce energy usage and carbon footprint
                                                 greener
                                                  greener
                                                 industry
                                                 industry                      Enable enterprises to eco-sustainably transform their business




                                                                               Environmental and social responsibility in our corporate practices
                                               Making
                                               Making
                                           Alcatel-Lucent
                                           Alcatel-Lucent
                                              greener
                                              greener                          Longstanding eco-partnerships with key organizations




   13 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009       All Rights Reserved © Alcatel-Lucent 2009
www.alcatel-lucent.com




14 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009   All Rights Reserved © Alcatel-Lucent 2009

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Transformando las comunicaciones Hacia un mundo Eco-Sustentable

  • 2. Eco-Innovation: Alcatel-Lucent’s vision 2 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 3. Eco-sustainability: Why it matters Customers Legislation Investors Eco- sustainability Operational Brand Costs Source: BBC News - How the world is changing 3 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 4. Eco-sustainability: Risks and rewards REWARDS Damage image & reduce brand Increase value employee and customer Lose business satisfaction Get hit by Capture new regulation opportunities Increase profits RISKS 4 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 5. The bad news: ICT is a major polluter ICT today: 2% of global emissions… ual s -a s-us Gtons CO2 sin es 1.4 If bu 0.8 0.5 Zero Growth Line 2002 2007 2020 Source: GeSI – SMART 2020: Enabling the Low Carbon Economy in the Information Age 5 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 6. The good news: we can reduce… … and help others reduce their impact ICT today: 2% of global emissions… with an opportunity to make tremendous impact on the remaining 98% ual s -a s-us We lower our impact Gtons CO2 nes 1.4 If busi 0.8 -0.9 0.5 Zero Growth Line 2002 2007 2020 We lower impact from other industries -7.8 Indirect benefit is more than 10 times our target footprint Source: GeSI – SMART 2020: Enabling the Low Carbon Economy in the Information Age 6 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 7. Transforming communications for a sustainable world Direct impact: Use less energy & fewer resources Holistic, end-to-end network approach to eco-sustainable communications Indirect impact: Less carbon, more opportunities Innovative solutions that help make your customers greener Vendor choice: Work with companies who ‘get green’ Choose vendors with green DNA – and solutions that prove it 7 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 8. Direct impact: Use less energy & fewer resources Use Network & greener operation equipment optimization • Moore’s law • Optimized extended: latest architecture generations are more efficient • Greener operations • Heat and power • Alternate management operational models Power represents 4-10% of network OPEX 8 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 9. Equipment Equipment Optimization Optimization Zoom in using greener equipment Key areas Drivers Benefit Examples Higher density/lower consumption Invest in New features 25-70% power innovation Life cycle management (reuse, saving remanufacture, recycle) Optimize Green energy heat and Smarter cooling (up to 50% power saving) 2-4 years payback power Alternate power (e.g. solar or wind+solar) for 35% of radio management sites 46% of the $277 billion global telecom infrastructure market by 2013 will be environmental-friendly equipment (Source: TMCnet report, June 2009) 9 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 10. Equipment Equipment Optimization Optimization Zoom in optimization Key areas Drivers Benefit Examples Network optimization/transformation reducing footprint, optimizing site usage Mixed macro/ Architecture femto cells: -70% Self-Optimizing Network: LTE RAN power Towards High-Leverage Network Avoid on field technician & travel-induced CO2 generation Micro-trenching: Processes Eco-deployment -40% non- renewable energy Sustainable power consulting/benchmark Sharing (site, RAN, duct) Operational Managed operation/outsourcing for critical -40% OPEX models mass 10 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 11. Indirect impact: Help your customers ‘burn’ less Key areas Drivers Benefit Examples UK: if 5m people work@ home: Travel less, Teleconferencing & collaboration • 8 m tons CO2 / year communicate • 1.4% UK total emissions E-services (e-gov, e-health) more • 170 m € eco- compensation Digital books, Network storage and distribution newspapers, photos, Virtual media Software as a Service music, films, ‘paperless’ office Buildings generate 40% of global CO2 Monitor and Smart utilities Smart buildings: 1.7 b tons Control Smart transportation CO2 potential Smart buildings Ex: Hampshire hotels: -40% electricity bill Enabled by telecom networks and services Source: Alcatel-Lucent analysis of Smart 2020 data and Bell labs 11 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 12. Vendor choice: Work with companies who ‘get green’ Walking the talk • Committed to reducing total CO2 emissions from facilities by 50% by end of 2020 • Global Environment, Health and Safety Management System • Promoting eco-responsibility company-wide • Require that our suppliers comply with Alcatel-Lucent environmental policy Longstanding eco-partnerships • Member of the United Nations Global Compact • Active member of the Global e-Sustainability • Actively engaged with customers, standards bodies and industry consortia 12 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 13. Eco-innovation: Alcatel-Lucent’s commitment Increasing energy efficiency / power performance of our products Products and solutions ready for renewable energy sources Helping Helping We design and optimize environmentally efficient networks service service providers be providers be Sustainable end-of-life solutions tailored for your business needs greener greener Our lifecycle approach: eco-sustainable solutions for our customers Transforming communications Bell Labs: innovative, eco- friendly and energy-efficient technologies for a sustainable world Enabling Enabling Intelligent applications to reduce energy usage and carbon footprint greener greener industry industry Enable enterprises to eco-sustainably transform their business Environmental and social responsibility in our corporate practices Making Making Alcatel-Lucent Alcatel-Lucent greener greener Longstanding eco-partnerships with key organizations 13 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009
  • 14. www.alcatel-lucent.com 14 XXIV Congreso de Telecomunicaciones, Cartagena de Indias, Octubre 2009 All Rights Reserved © Alcatel-Lucent 2009