MTN Consulting is focused on network operators & their technology supply chains, tracking the economics of the network operator business and assessing the big shifts that impact technology spending trends. Our coverage includes:
3 major network operator markets
- Telecom Network Operator (TNO)
- Webscale Network Operator (WNO)
- Carrier-Neutral Network Operator (CNNO)
190+ operators
Across the three major network operator markets in all key regions
40+ time series
10+ years’ market- and operator-wise data across quarters and years starting 2011
~50 reports published per year
- Market data and insight reports spanning –
- quarterly market reviews
- operator and vendor deep dives
- benchmarking and strategic assessments
- forecast/outlook analysis
Latest report
Operators take baby steps towards sustainability as climate change worsens rapidly
This short report is focused on the energy consumption and environmental policies of the world’s network operators. It presents data on energy demand, use of renewables, emissions, and energy efficiency efforts. This is an update of a report published in 2023 with new data and new analysis. The world’s disparate efforts to address climate change are falling miserably short. Per the United Nations, current climate policies will result in global warming of more than 3.1C by the year 2100. That’s twice the level of warming agreed upon in the 2015 Paris Agreement. A quick scan of the world’s headlines will find many extreme weather events, population dislocations, and heavy economic damage already. If things continue, the planet will be less habitable for humans every year. Humanity will spend more time and money simply treading water – cleaning up after the last mega storm rather than putting economies on a more sustainable trajectory. In theory, tech companies have an opportunity to lead in the fight against climate change. In practice, network operators are failing badly. Energy consumption continued to grow for the aggregate of the three segments in 2023. The growth rate dipped to 4% in 2023, from about 9% the previous three years. The slower growth is a plus, but: (1) revenues grew even more slowly, so energy intensity (consumption divided by revenue) increased slightly, and (2) a recent explosion of AI data center investment in the webscale sector will probably change the trendline in 2024. How about renewables? There is nothing inherently bad about consuming energy, if it’s renewable and carbon free. Economies need energy to run, just as your car needs fuel. However, data from the telco sector is disconcerting. In 2023, renewables accounted for 19.9% of total energy consumed by telcos. This figure has been rising by year, up from 10.3% in 2019. But 20% is low, and many easy changes have been made already. Further, greenhouse gas emissions (GHG) from telcos were about 133.4 million tons in 2023, or 75 tons per $1M in revenues; both figures are roughly the same as in 2019. If telcos are going to meet their carbon neutrality goals anytime soon, they need to attack these emissions aggressively, and that will cost. As for webscalers, they have a high rate of renewable use. Yet it’s unclear if they will sustain this commitment now that they are on the GenAI bandwagon. For the third segment, carrier-neutral, it’s a mixed bag. Some CNNOs invest heavily in energy efficiency and renewables, and some brag about their green practices. Others largely ignore questions of sustainability. The CNNO sector has absorbed assets from other segments over the years, so their infrastructure can have a patchwork quality, with different standards and designs in different regions. Also, sometimes CNNOs buy assets that are known to be energy hogs using dirty energy. Moreover, many CNNOs are owned by private equity or similar asset management firms, and don’t publish financial data regularly, much less energy data. They face little to no public pressure to “go green.” With right wing conservatives taking power in the US, there will be even less pressure on such companies.
Latest reports
- December 20, 2024 Operators take baby steps towards sustainability as climate change worsens rapidly
- December 13, 2024 Webscale Network Operators: 3Q24 Market Review
- November 25, 2024 Vendor profile: QNu Labs
- November 15, 2024 Network Operator Capex Forecast: 4Q24 Edition
- November 6, 2024 Vendor profile: Scytale Alpha
MTN Consulting is focused on network operators & their technology supply chains, tracking the economics of the network operator business and assessing the big shifts that impact technology spending trends. Our coverage includes:
- 3 major network operator markets
- 190+ operators
- 40+ time series
- 50 reports published per year
Latest report
Operators take baby steps towards sustainability as climate change worsens rapidly
This short report is focused on the energy consumption and environmental policies of the world’s network operators. It presents data on energy demand, use of renewables, emissions, and energy efficiency efforts. This is an update of a report published in 2023 with new data and new analysis. The world’s disparate efforts to address climate change are falling miserably short. Per the United Nations, current climate policies will result in global warming of more than 3.1C by the year 2100. That’s twice the level of warming agreed upon in the 2015 Paris Agreement. A quick scan of the world’s headlines will find many extreme weather events, population dislocations, and heavy economic damage already. If things continue, the planet will be less habitable for humans every year. Humanity will spend more time and money simply treading water – cleaning up after the last mega storm rather than putting economies on a more sustainable trajectory. In theory, tech companies have an opportunity to lead in the fight against climate change. In practice, network operators are failing badly. Energy consumption continued to grow for the aggregate of the three segments in 2023. The growth rate dipped to 4% in 2023, from about 9% the previous three years. The slower growth is a plus, but: (1) revenues grew even more slowly, so energy intensity (consumption divided by revenue) increased slightly, and (2) a recent explosion of AI data center investment in the webscale sector will probably change the trendline in 2024. How about renewables? There is nothing inherently bad about consuming energy, if it’s renewable and carbon free. Economies need energy to run, just as your car needs fuel. However, data from the telco sector is disconcerting. In 2023, renewables accounted for 19.9% of total energy consumed by telcos. This figure has been rising by year, up from 10.3% in 2019. But 20% is low, and many easy changes have been made already. Further, greenhouse gas emissions (GHG) from telcos were about 133.4 million tons in 2023, or 75 tons per $1M in revenues; both figures are roughly the same as in 2019. If telcos are going to meet their carbon neutrality goals anytime soon, they need to attack these emissions aggressively, and that will cost. As for webscalers, they have a high rate of renewable use. Yet it’s unclear if they will sustain this commitment now that they are on the GenAI bandwagon. For the third segment, carrier-neutral, it’s a mixed bag. Some CNNOs invest heavily in energy efficiency and renewables, and some brag about their green practices. Others largely ignore questions of sustainability. The CNNO sector has absorbed assets from other segments over the years, so their infrastructure can have a patchwork quality, with different standards and designs in different regions. Also, sometimes CNNOs buy assets that are known to be energy hogs using dirty energy. Moreover, many CNNOs are owned by private equity or similar asset management firms, and don’t publish financial data regularly, much less energy data. They face little to no public pressure to “go green.” With right wing conservatives taking power in the US, there will be even less pressure on such companies.
Latest reports
- December 20, 2024 Operators take baby steps towards sustainability as climate change worsens rapidly
- December 13, 2024 Webscale Network Operators: 3Q24 Market Review
- November 25, 2024 Vendor profile: QNu Labs
- November 15, 2024 Network Operator Capex Forecast: 4Q24 Edition
- November 6, 2024 Vendor profile: Scytale Alpha
In The Press
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April 2024
What lies ahead for India’s Vodafone Idea -
Our Three Core Offerings
Research
MTNC’s research is focused on communications network infrastructure, a market attracting $3.5 trillion in annual operator revenues. Our goal is to provide credible, holistic assessments of where the NI market currently stands and where it is headed. Reports address market and technology trends, key players, and country dynamics.
Subscription
MTNC bundles its research into an annual subscription service called “Global Network Infrastructure”. GNI provides clients with an end-to-end view of the network operator business, assessing the big shifts that impact technology spending trends. GNI clients include technology vendors (chips, network equipment and software, IT services), operators, regulators, and investors.
Consulting
Our consulting services include: scenario planning; market sizing, forecasting, and analysis; organizational strategy; marketing support; competitive benchmarking; and, due diligence support for M&A and PE transactions. We bring experience and independence to the table, and access to the proprietary databases generated by our GNI subscription program.
In The Press
Southeast Asia emerging as the new battleground for cloud service providers
Fierce Network
Hyperscalers gain network infrastructure market share
Inform, TM Forum
Can CSPs realize opex reductions through AI?
Inform, TM Forum
What lies ahead for India’s Vodafone Idea
Fierce Network
SK Telecom’s enduring belief in metaverse spells hope for the technology
Fierce Network
BT confirms Starlink tests as it explores remote connectivity options
Fierce Network
Forecast on Telecoms Capex, Revenue and Business Models
Telecomlead
What does Qualcomm terminating its chip deal with Iridium mean for satellite telecom?
SDxCentral
ZTE stock slides on weaker earnings, falling revenue
LightReading
AT&T, Vodafone, AST hit a 5G satellite milestone
SDxCentral
Amazon, SpaceX extend reach with Vodafone, KDDI satellite deals
SDxCentral
Vodafone expands horizons with Amazon’s Project Kuiper
Fierce Network
Blogs
With each passing day, the 2G and 3G layers of telcos' mobile networks are looming as heavy loads on operating expenses (opex). That's due to multiple issues but especially energy consumption and related costs. With the exist
read moreVendors continue to wrestle with supply chain constraints in the telecom sector. That's clear from several recent vendor earnings reports, including those issued by Dell, HPE, and Ciena in recent weeks. Telco spending, though
read moreTelco network spending has been on the rise over the last few quarters. Vendor sales of network infrastructure to the telco vertical ("Telco NI”) totaled $55.5B in 1Q22, up 5.7% YoY. On an annualized basis, Telco NI revenue
read moreTelco NI's top 3 Telcos buy products & services from dozens of different vendors. Our research tracks 130. Some are relatively easy to classify into a segment, e.g. Corning, a "cabling & connectivity" vendor in our
read moreIt was the Greek philosopher Heraclitus who coined the phrase, “Change is the only constant in life.” Well over a thousand years later, Benjamin Franklin continued the thought, saying, “When you are finished changing
read moreOne of the many telecom stats we track is "labor costs", i.e. what telcos spend in salaries and benefits to support their workforce. Not a lot of other analyst firms track labor costs, if any. It's not an easy one to track, a
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