Greenification: a far cry from reducing emissions
Green issues have traditionally been regarded as solutions to greenhouse effects and carbon emissions, and the reduction of these as a major issue. The telecoms industry in Africa should be well past thinking of greenification like this. It should be looking at the long term operating expenditure (OPEX) savings that can be made through implementing greener solutions. What are the power options for running base transceiver stations (BTSs)? Historically, this was either done via grid power (electricity) or diesel. Grid power makes the most sense and in most territories is probably the most cost-effective way to power these units. However, with the lack of electrification in rural parts of Africa (and the rest of the world, for that matter) diesel was the other option. If one looks at operators in Africa, there are a large number of them (clearly most them will not disclose actual figures) and one of their top three OPEX costs will in fact be diesel. This seems ludicrous on a continent that has an abundance of sun and wind in most places. Greenpeace, for example, noted that global operators consumed 1.8 billion litres of diesel in 2010. At current diesel prices of around US$3 per litre, the calculation is simple. This cost is excessive in the extreme. Considering the subscriber growth in 2011 and the lack of substantial growth in green BTSs in 2011, this figure will have increased. We should also not forget the double-edged sword effect of these BTSs running on diesel: this diesel needs to be delivered to these generators. Generally the BTSs are in remote areas, which is why they are running generators in the first place. This being the case, the diesel is shipped in over long distances – thus consuming extra diesel that the operator needs to pay for. Does this not seem even more ridiculous? Operator shareholders should take note, as the financial impact of additional CAPEX now to install alternative energy systems like solar, wind and even fuel cell technologies could substantially affect profits in the long term. This is not the only problem with these solutions, as the CAPEX of implementing them can be substantial. If one looks at a 3,000 MW BTS, a diesel power unit will cost US$27,000, as opposed to a hybrid powered solution running solar and wind that would cost around US$173,200. This is an example from the GSMA website for an installation in Somalia. Granted, this is a substantial difference. With the current price of diesel around the $3 mark, the difference in cost is 48,000 litres of diesel. The conclusion seems clear.
A PATENT DIGRESSION
Another hot topic discussed in this issue of Africa Telecoms is the mobile patent wars that are moving full steam ahead. The number of companies filling their patent archives with additional patent acquisitions is growing. Will all this ever come to an end? Probably not. The author believes that technology will always be a hotly contested area. Besides, as my mother used to say, “imitation is the sincerest form of flattery”. Mom, I am not sure that Google, Motorola, Apple and Nokia see it quite that way, with billions of their dollars being spent on research and innovation.
