Over 90 Per cent of Telecoms Operators Fear that 5G will Lead to Higher Energy Costs: Survey

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The move to 5G is estimated to increase total network energy consumption by up to 170 per cent by 2026.  

While telecoms operators are optimistic about the future services 5G will enable, they also fear that the next generation networks will result in higher energy costs – according to the findings of a survey conducted by Vertiv and technology analyst firm 451 Research.

The survey questioned more than 100 global telecoms operators about the opportunities and potential obstacles of deploying 5G services and the impact on edge computing adoption.

Majority of them believe that the 5G era will start in earnest in 2021 in all geographies, with 88 per cent of respondents planning to deploy 5G in 2021-2022.

However, more than 90 per cent of respondents expressed fear that 5G will result in higher energy costs.

This is consistent with internal analysis by Vertiv, which found that the move to 5G is likely to increase total network energy consumption by 150-170 per cent by 2026, with the largest increases in macro, node and network data center areas.

Potential obstacles of deploying 5G services in India

Dinesh Dhut, director – telecom, Vertiv India, believes that 5G will add more impetus to the app-based economy and improve user experience in India.

He said that though India has the potential to be a global frontrunner in deployment and use of 5G networks, that there are concerns around investments in deployment by service providers in the country.

Apart from investment another big concern, according to him, is the high cost of electricity in India, which is crucial for service providers to manage the operations of networks.

“In the current scenario of tariff wars between the top three players, we expect the service providers to look for technologies that will optimize running costs when the 5G networks will be deployed,” Dhut added.

Telecoms operators on edge computing adoption

Regarding edge and 5G specifically, the survey found that a large majority of operators have deployed (37 per cent) or plan to deploy (47 per cent) edge compute that is aligned with mobile infrastructure – also called multi-access edge computing (MEC).

Upgrading access and aggregation layer networks and adding new backhaul links were identified as the two toughest connectivity challenges for supporting 5G topologies by the telecoms operators.

Brian Partridge, research vice president for 451 Research, commented, “Survey respondents indicated that the availability of high-quality connectivity to distributed POPs and ease of site acquisition were viewed as the most critical enablers to 5G success. We were frankly surprised by some of these results and believe it brings clarity to the level of transformation the industry now faces.”

According to the survey, more than 90 percent of respondents said they are either extremely or moderately interested in Energy Savings as a Service (ESaaS).

Vertiv and 451 Research shared details of the findings at Mobile World Congress on February 27 in Barcelona, Spain.

 

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