Communication Service Providers
Telecom cost control: Navigating the challenges of rising energy prices
The telecom sector has long grappled with escalating energy costs, and with the recent surge in energy prices, the challenge has become even more pressing. Energy spending, a major expense for telecom operators, typically accounts for up to 5% of their revenue. With network infrastructure expansion, increasing traffic, and the transition towards carbon neutrality, telecom companies are facing even heightened energy consumption, making telecom cost control difficult. The impact of this rising cost is far-reaching, forcing telecom operators to rethink how they approach telecom energy management.
Key telecom energy management challenges
As telecom companies navigate the complex landscape of rising energy prices, several key challenges have emerged, like inflation, volatile energy prices, supply chain disruptions, and geopolitical instability. These challenges stem from both operational and organisational considerations, each playing a critical role in telecom energy management.
Operational challenges
Telecom companies often operate vast, geographically dispersed networks that involve a mix of technologies. Such diverse tech infrastructure creates challenges for telecom energy management. With limited remote monitoring capabilities, telecom operators often struggle to implement more strategic and data-driven efforts for telecom cost control and energy efficiency.
Organisational challenges
In addition to the operational hurdles, many telecom companies face challenges due to inadequate governance structures and a lack of clear accountability. Without strong leadership and a clear decision-making process, telecom cost optimisation efforts can become fragmented and ineffective. As a result, telecom companies may find it challenging to make the necessary strategic shifts to tackle the rising energy prices.
Achieving telecom cost optimisation through effective energy management
Optimising energy consumption and implementing strategies to help reduce expenses are the building blocks of successful telecom cost control. Some of the effective telecom cost optimisation strategies providers can consider include:
Building efficient networks with zero-based mobile design and cloud migration
A zero-based network design approach can allow telecom companies to take a fresh look at their network infrastructure and assess opportunities for energy savings rather than relying on previous designs. It involves a data-driven approach and prioritising the migration of on-premises IT infrastructure to the cloud. This can allow for more efficient energy use and the flexibility to scale resources as necessary, helping operators optimise telecom energy management and cost control.
Leveraging analytics and traffic intelligence for energy optimisation
Another critical strategy involves leveraging analytics-driven telecom energy management and optimisation. With AI-driven traffic intelligence, including traffic patterns and usage, operators can build supply-demand interlocks, ensuring effective resource allocation and building capacity in line with actual traffic demands.
Optimising network sharing for telecom cost control
Optimising network sharing offers another significant opportunity for telecom cost optimisation through energy cost savings. By embracing network sharing models like MOCN (Multi-Operator Core Network), telecom providers pool their resources to reduce infrastructure duplication, lower energy consumption, and drive down network rollout costs.
Reducing energy expenses through legacy network decommissioning
Decommissioning legacy fixed networks presents another powerful opportunity for telecom cost control. Older infrastructure often consumes more energy and becomes harder to maintain as technology advances. Replacing or decommissioning these outdated systems can help companies optimise their telecom energy management while improving overall network performance and reliability.
Advancing sustainability efforts with green energy solutions
A key trend in the modern telecom sector is the focus on sustainability, energy efficiency, and carbon neutrality. Procuring green energy or investing in renewable sources of power can help telecom companies align their operations with environmental goals while ensuring efficient telecom cost control. This will not only reduce reliance on volatile energy markets but also position companies as leaders in sustainability efforts – an increasingly important factor for customers and investors alike.
Effective telecom energy management hinges on two main enablers: clear decision-making governance and technology adoption, which can empower telecom companies to optimise their energy usage and achieve long-term cost savings.
Infosys BPM offers a suite of services that can help telecom companies and other businesses leverage next-gen technology to achieve telecom cost optimisation. By leveraging next-gen solutions, Infosys BPM helps organisations effectively manage their network assets, energy usage, and expenses for better operational efficiency, enhanced financial management, and reduced operational costs when navigating the challenge of rising energy prices.
Conclusion
As the rising cost of energy continues to challenge businesses, telecom cost control and energy efficiency have become a top priority. With the right strategies in place, operators can optimise telecom energy management and reduce costs. From leveraging advanced analytics to adopting cloud-based infrastructure and optimising network sharing, telecom operators have a range of tools at their disposal to manage their energy use effectively and achieve telecom cost optimisation. With sustainability at the forefront, energy management is no longer just about cost control but also about building a more efficient, resilient, and future-ready network.
