In the context of global economic acceleration toward low-carbon sustainable transformation, as a supporter of digital infrastructure, the green innovative development of the telecommunications industry appears particularly important. On one hand, with the widespread application of 5G technology and the continuous expansion of data center scales, the energy consumption of the telecommunications industry shows rapid growth; on the other hand, the rapid upgrading of telecommunications equipment leads to a surge in electronic waste, which is difficult and costly to recycle and poses potential threats to the ecological environment. Facing these challenges, how can the telecommunications industry reduce operating costs, enhance market competitiveness, and meet user demands for green communication services? Recently, we had a dialogue with Wang Shengyong, Product Solution Director of Mobile Wireless at Ericsson China, and Fang Xiangqun, Chief Expert of Wireless Product Solutions at Ericsson China, among other experts, to deeply explore the development path of green transformation in the communications industry.
The following is the dialogue transcript:
Q: Under the national dual-carbon goals, what do you think is the biggest bottleneck for green transformation in the telecommunications industry? Is it technical limitations, cost pressures, standard deficiencies, or other factors?
A: Under the backdrop of national "dual-carbon" goals, the green transformation of the telecommunications industry indeed faces multiple challenges. Currently, the main bottlenecks are technical limitations and cost pressures. Among these, cost pressures and optimization upgrades of existing network architectures may be the most prominent bottlenecks.
The telecommunications industry still needs to continuously increase R&D investment to further improve hardware energy efficiency, intelligent software algorithms, and promote more efficient cooling and power supply solutions. For example, Ericsson is committed to promoting energy-saving site transformation and popularizing smart grid technology.
Finally, a factor that cannot be ignored is the complexity of existing network architectures and the difficulty of updates and iterations. Communication networks are vast and complex, consisting of millions of base stations, equipment rooms, and transmission equipment. Green transformation of existing networks is not simply about replacing equipment; it also involves overall network optimization, software upgrades, and intelligent management. This is a systematic project with very high complexity and workload.
Q: Ericsson has proposed multiple measures from different dimensions for supply chain carbon reduction, such as reducing product weight and size, engaging 350 key suppliers, and reducing carbon dioxide emissions from incoming goods, outgoing goods, and local transportation. In advancing these emission reduction measures, have you encountered challenges and obstacles? How were they overcome?
A: Ericsson requires its 350 high-emission and strategic suppliers (accounting for 90% of procurement spending) to set science-based carbon targets according to the 1.5°C temperature control goal. Currently, 237 suppliers have made commitments. The company plans to achieve net-zero emissions in its own operations by 2030 and further achieve net-zero emissions across the entire value chain by 2040.
We have indeed encountered some challenges in advancing these emission reduction measures. First is the calculation and collection of supplier carbon data, lacking professional methods and tools. Ericsson shares professional calculation methods and tools with suppliers, such as providing carbon footprint calculation guidance and standardized data collection templates, ensuring suppliers provide complete and reliable data and formulate scientific emission reduction actions.
Second is cooperation with customers, where the predictability and accuracy of customer orders affect material waste reduction and green transportation. For this, we need to deeply understand customer needs, strengthen customer communication, improve order forecast accuracy, optimize supply chain management, reduce material waste, and provide operational space for green transportation.
Third is the relationship and balance between sustainability indicators and other important indicators. Sustainability serves as an important indicator in supply chain design, discussed and measured alongside other key indicators such as cost and delivery cycle. We analyze the mutual impacts between indicators, ensuring decision-makers reach consensus on the impact and weight of each indicator, recognizing the importance of sustainability, so that environmental sustainability goals can ultimately be integrated and implemented in the decision-making process.
Finally is green transportation, which presents the most challenges. International air freight has high carbon emission intensity, but some precision equipment requires rapid delivery. Ericsson has implemented an "air-to-sea" strategy in international transportation by predicting customer needs in advance, successfully converting most air freight to sea freight solutions. Since 2022, domestic surface transportation has accounted for over 99%, exceeding targets. Through intelligent routing algorithms to optimize delivery routes and collaborating with logistics providers to build low-carbon fleets, electric transportation tools are introduced to reduce "last mile" emissions.
An important challenge we face in transportation is limited electric truck resources. Most electric trucks are small vehicles, and vehicle type limitations cannot meet the transportation needs of large volumes and large cargo. Long charging times and significant range anxiety may affect transportation efficiency. Logistics service providers maintain a wait-and-see attitude toward electric truck investment and are unwilling to make high investments for single projects. To solve this problem, Ericsson adopts a gradual promotion strategy, establishing pilots. Combined with different market shipping trends, we prioritize promoting green transportation in regions with stable cargo volumes, moderate distances, and controllable routes, accumulating data and confidence. Multiple supply chain departments coordinate to give electric trucks priority shipping rights and bonus points in assessments. We establish CO2 emission reduction data monitoring mechanisms and conduct healthy CO2 emission reduction competitions among logistics service providers.
Q: With the acceleration of 5G intelligent green base station projects currently underway, what pain points and gaps in green base station deployment are the industry universally facing that urgently need to be addressed? For these common industry challenges, what unique innovation advantages does Ericsson's green station solution demonstrate in terms of technology and applications that can assist in the large-scale implementation of green base stations?
A: The industry's current green base stations mainly face four pain points. First, energy and business needs are not closely integrated, with energy management and base station management separated. This separated management system approach cannot adjust base station service scope and quality according to energy supply conditions, extending base station working time. Second, multiple energy sources cannot be uniformly scheduled. Solar energy, wind energy, and batteries from different manufacturers have isolated parameters and usage states, and usage strategies cannot effectively leverage each energy source's advantages to achieve maximum energy savings and extend equipment lifecycle. Third, there is a lack of unified monitoring for each unit. The monitoring interface standards for each unit are inconsistent, making unified control impossible. Additionally, the monitoring capabilities of each unit are not uniformly planned, making it impossible to achieve required state monitoring and alarms according to design goals. Fourth, engineering quality control is difficult, lacking unified general contracting executors, with inconsistent construction quality. For example, solar batteries, conversion units, storage batteries, and cabinets are provided by different manufacturers with inconsistent quality.
To solve these pain points, Ericsson verified the 5G intelligent green base station solution with China Mobile, configuring sites with Ericsson Site Intelligence Manager, solar panels, power conversion boards, and storage batteries. Through statistics and technology on specific site sunshine duration, solar power supply levels can theoretically support base stations operating with 100% green energy. After sites switch to solar power supply, mains electricity no longer powers base stations. Solar power meets base station needs and can simultaneously power base stations and batteries. Even in low-light weather, it can work with batteries to power base stations. Additionally, battery power can meet base station power supply needs in no-light (nighttime) conditions and can effectively supplement energy gaps caused by insufficient solar power in low-light environments.
Ericsson's 5G intelligent green base station, compared to traditional "solar" base stations, achieves the greatest innovation in technical solutions by introducing the Ericsson Site Intelligence Manager product. This innovation realizes breakthroughs in multiple key areas including quality assurance, intelligent scheduling of multiple energy sources, full-stack real-time monitoring, and intelligent coordination between energy and business. This solution integrates green energy generated by photovoltaic panels and wind turbines through Ericsson's new energy power board and storage batteries into the Site Intelligence Manager, thereby achieving unified management and intelligent optimization scheduling of multiple energy sources. For example, during daytime when sunlight is abundant, solar power is prioritized, and excess electricity generated by photovoltaic panels can be stored in batteries for nighttime base station use. If sites are connected to mains electricity, efficient energy distribution can also be achieved through intelligent control. Meanwhile, through the Site Intelligence Manager, the green station system can be remotely accessed through the same network management system as base stations, achieving integrated monitoring of base stations and new energy - including full-stack remote maintenance and software upgrades, real-time visualization of performance data, configuration data, alarm data, battery health status, and other information, effectively avoiding risks of site power supply failure.
More importantly, this solution can intelligently adjust base station carrier, energy-saving feature operation status, and power levels according to base station business status and "new energy" supply levels, achieving dynamic optimization coordination between base station business and energy supply. For example, in green stations without mains electricity access, when the unified network management system detects limited battery power and declining base station business volume, it will automatically shut down some transmission channels, reducing energy consumption while ensuring continuous base station operation and extending battery power supply time.
Additionally, Ericsson Site Intelligence Manager shares the same product platform as Ericsson base station systems, possessing the same security level as base stations and can effectively resist network security attacks.
For scenarios where both transmission and mains electricity are unreachable, such as telecommunications universal service and mountain scenic spots, intelligent green stations can be used together with Ericsson's leading microwave products to achieve "wireless" zero-carbon base station deployment. This solution can also be applied to suburban sites with tight power supply, alleviating power supply pressure and saving electricity costs through new energy introduction.
Q: We understand that in the telecommunications industry, energy savings and performance assurance often present certain contradictions in wireless networks. Because energy savings typically means reducing equipment usage frequency, which may bring challenges to the stable operation of telecommunications networks. Does Ericsson have any exploration in solving this problem? What experiences are worth sharing?
A: Energy savings and performance in wireless networks often present certain contradictions. To save more energy, networks need to shut down certain resources for longer periods, such as transceiver channels, power amplifiers, and carriers. However, to ensure performance, network resources need to be online in real-time, ready to respond to business requests at any time, ensuring user experience, latency, and other key indicators are not affected.
Because traditional energy-saving technologies do not assess the direct impact of energy-saving strategies on network performance in real-time, energy-saving strategies are relatively crude. Operators can often only adopt relatively conservative energy-saving solutions - usually enabling energy-saving functions only during confirmed business low periods (such as early morning hours) and choosing to shut them down during other periods to avoid affecting user experience.
Addressing this challenge, Ericsson launched intent-based (desired performance goals) intelligent energy-saving algorithms, achieving dynamic balance between energy savings and performance assurance. This function allows operators to preset desired network performance goals. Base stations will monitor current network performance in real-time and dynamically adjust energy-saving scales according to network performance intentions to be achieved, minimizing energy consumption while ensuring predetermined performance requirements.
This innovative solution eliminates operators' concerns about performance damage, enabling energy-saving functions to operate around the clock. According to tests in Chinese operator live network environments, after deploying this Ericsson function, overall energy consumption of 5G base stations can be additionally reduced by approximately 8%.
Q: What do you think is the decisive key to carbon neutrality in the telecommunications industry? How does Ericsson position its future role?
A: We believe the decisive key to achieving carbon neutrality in the telecommunications industry lies in cross-industry innovation, which means greening the entire industrial chain. Ericsson's carbon neutrality goal is achieved through implementing our "Net Zero Strategy" and "2040 Net Zero Emissions Target." "Cross-industry innovation" means all participants in the industry, including operators, equipment suppliers, chip manufacturers, energy suppliers, and policymakers, must break down barriers and jointly develop and promote energy-saving technologies, optimize network operations, and improve energy efficiency management through digitalization. This is not just technological innovation, but innovation in business models and cooperation mechanisms. For example, Ericsson's 5G smart factories in Nanjing and Nantong have significantly improved production efficiency and energy consumption management through advanced automation and digitalization technologies, which is also a manifestation of cross-industry innovation in the supply chain.
"Greening the entire industrial chain" emphasizes that achieving net-zero emissions is not the responsibility of any single link, but requires full lifecycle management from product design, raw material procurement, manufacturing, product transportation, network deployment, operation and maintenance to final recycling. This means we must start from the source. For example, Ericsson actively promotes plastic-free packaging and drives sustainability improvements in the supply chain, which are specific practices of greening the entire industrial chain.
Ericsson's future role positioning in net-zero emissions mainly revolves around the following aspects:
First, as an innovator and enabler of green technology, Ericsson will continue to increase R&D investment, focusing on more efficient, lower energy consumption future network equipment, and AI and machine learning-based intelligent network management systems, helping operators achieve maximum network energy efficiency. By providing leading hardware and software solutions, we are committed to making communication networks themselves more "green," driving industry emission reduction from the technology source.
Second, as a promoter and collaborator of industrial chain green transformation, Ericsson not only focuses on carbon emissions from its own operations, but will also deeply collaborate with global suppliers, customers, and partners to jointly drive green transformation of the entire communications industrial chain. We plan to build a sustainable industrial ecosystem through sharing best practices, participating in industry standard formulation, and jointly exploring innovative solutions, making green transformation a common action across the entire chain.
Additionally, as an advocate and practitioner of sustainable development concepts, Ericsson will always lead by example: on one hand, by setting more challenging net-zero goals and transparently reporting progress, demonstrating action determination - for example, we commit to achieving operational emission reduction by 2030 and net-zero emissions across the entire value chain by 2040; on the other hand, actively participating in global climate governance, advocating and promoting broader industry and social forces to focus on green sustainable development, building action consensus.
Looking ahead, Ericsson will position itself as a leader, enabler, and collaborator in the green transformation of the communications industry, committed to contributing to China's "dual-carbon" goals and global sustainable development through technological innovation and collaborative efforts across the entire industrial chain.