1. Panel discussion on “Green networking and renewable energy sources” Mobile networks and “green” energy sources: an operator point of view TELECOM ITALIA GROUP SustainIT 2015 Getafe, Madrid, April 14 th, 2015 Telecom Italia - Engineering&TILab Damiano RAPONE

2. 2 Agenda Telecom Italia presentation Conclusions Q&A Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources Energy Efficiency in Telecom Italia The importance of Green ICT

3. 3 Telecom Italia group1/2 Employees 66.025 TIM lines in Italy 30.300.000 Revenues (€) 21.573.000.000 Telecom Italia is the main telecommunication and ICT operator in Italy, as well as one of the most important in Latin America and among the main global mobile operators Italian leader in the ICT market, active in the following sectors: fixed and mobile communications, internet and media, systems and solutions for business, R&D Strategic markets: Italy, Brasil Values referred to December 2014 http://www.telecomitalia.com/tit/en/about-us/profile.html Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources

4. 4 Telecom Italia group2/2 The international presence Italy Latin America: Brasil International Wholesale services Telecom Italia Sparkle (TI Sparkle) is a global service provider offering voice, data and internet solutions to fixed and mobile carriers, Internet Service Providers (ISPs), multimedia operators and corporate customers. Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources http://www.tisparkle.com/document_loader.aspx?idDocument=1318

5. 5 Focus on TILab: Wireless Access Innovation Main activities of the department  R&D activities, scouting, benchmarking, testing, performance evaluation of wireless systems (LTE/LTE-A), study of innovative radio access technologies towards 5G  Technological trials, support to engineering department  Participation in standardization bodies and fora (3GPP, ETSI, ITU, NGMN)  International funded projects, collaboration with vendors and academic world Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources https://www.ict-earth.eu/https://www.metis2020.com/http://www.ict-ijoin.eu/ http://wireless.kth.se/blog/projects/5green/ http://www.miwaves.eu/

6. 6  EU funded research projects  E  5GrEEn project (Towards Green 5G Mobile Networks)  EXAM (Energy efficient Xhaul and M2M)  ETSI normative [ETSI Environmental Engineering (EE), sub-group Eco Environmental Product Standards (EEPS)]  TS 102 706: “Measurement Method for Energy Efficiency of Wireless Access Network Equipment”  Other “green” activities:  LTE auction in Italy  Energy Efficiency (EE) and power consumption measurements  DREAM project Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources EARTH project (Energy Aware Radio and neTworking tecHnologies) Energy Efficiency in Telecom Italia (1/2)

7. 7 Energy Efficiency in Telecom Italia (2/2) Environmental sustainability initiatives  Telecom Italia contributions in:  Development of the new version of the EC Code of Conduct on Energy Consumption of Broadband Communication Equipment (BB CoC V5)  ITU-T’s “green” standards (Recommendations L.1002, L. 1340 and L.1010)  “New sustainability model for the TLC/ICT sector” agreement (May 21 st, 2012)  Signed between Telecom Italia and the Italian Environment Ministry  Commitment in buying electricity from renewable sources only  Guarantees of Origin ensuring the use of renewable sources only  Further reduction of the environmental impact of Telecom Italia’s activities (-70 % CO 2 emission)  Smart Center  Telecom Italia is the 2 nd largest user of electric power in Italy (2.2 TWh/year)  Country-level monitoring of the energy consumption of the infrastructure (radio base stations, data centers, offices, shops and laboratories)  Telecom Italia Green Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources Telecom Italia S.p.A. is 100% powered by renewable energy

8. 8  Currently 3% of the world’s annual energy consumption is related to Information and Communication Technology (ICT) infrastructures  Mobile communication systems represent ~ 15% of total ICT sector  ~ 10% of ICT’s energy consumption can be attributed to mobile systems  ICT is thus a quickly-growing contributor to CO 2 emissions  ~ 2% of the worldwide CO 2 emissions (comparable to airplanes, ~ 25% of cars’ emissions)  Within ICT, mobile communication systems contribute ~ 12% in CO 2 emissions  Expected to grow by nearly a factor of 3 in 2020 (with respect to 2002 emissions) The importance of Green ICT (1/2) Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources ICT’s energy consumption rises at ~ 15-20% per year

9. 9  This affects the operators’ OPerational EXpenditures (OPEX) Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources The importance of Green ICT (2/2) Reducing energy consumption not only a matter of being green and responsible but also economically sustainable  Mobile network’s energy consumption grows rapidly because of the dramatic mobile data traffic increase  The price of electricity is continuously increasing (+10% annually in European Union)

10. 10  Improve the Energy Efficiency (EE) in all components of the mobile network  Replacing traditional power sources with renewable “green” solutions not only benefits the environment but also positively impacts operator’s OPEX Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources Mobile networks and renewable energy sources: a possible synergy The key source of energy consumption is the operation of base stations (60-80% of the network’s total energy consumption) The key source of energy consumption is the operation of base stations (60-80% of the network’s total energy consumption)  Green energy saves on-grid power consumption  Excess electricity sold to the electrical grid (if connected)  Diesel-powered generators no more needed (in on-grid sites)  Base station located away from electrical grid  System still works if electrical grid is off  Green power generation dependent on the power generators’ geo-locations and weather conditions  Higher cost-per-watt of renewable sources  Additional CApital EXpenditures (CAPEX) due to power generation infrastructure and batteries  Backup batteries to maintain the base station active when green energy is not sufficient

11. 11  ICT’s energy consumption rises at ~ 15-20% per year  Both increasing electricity price and foreseen traffic data growth negatively impacts operator’s OPEX  Reducing network’s energy consumption for economic and environmental sustainability  renewable energy sources  Improving the Radio Access Network infrastructure (i.e., base stations) Energy Efficiency is the key to Green ICT Conclusions Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources

12. 12 Q&A Wireless Access Innovation Damiano Rapone damiano.rapone@telecomitalia.it

13. Backup slides Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources

14. 14 Mobile Energy Efficiency (1/2)  In mobile communication networks a large part of the carbon footprint stems from electricity consumption during operation and manufacturing  Most of the today’s power consumption comes from the RAN:  high number of sites  high and not scalable base station consumptions (2007) Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources

15. 15  Radio access network energy consumption is a considerable portion of the entire energy consumption of the mobile network, both considering already deployed network but also growth forecasts due to the increasing mobile ultra- broadband traffic demand  Areas of potential improvements: Mobile Energy Efficiency (2/2) at component / node level:  Hardware (HW) improvements can give in a first stage the most of the gains; in general each new HW generation is typically more energy efficient but will reside unchanged in the network for several years at system and network level:  New functions, network management mechanisms and RRM algorithms, features typically implemented in SW; potentially can be upgraded and introduced in the network over the lifetime of several HW generations. Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources

16. 16  Up to now conventional design of Mobile Networks is performed by considering full load (maximization of the capacity of the nodes; performances traditionally evaluated in terms of spectral efficiency)  But in practical situations the problem is that: The simple truth about mobile Energy Efficiency… Source: EARTH D2.3 deliverable. (for further details see backup slides at the end of the presentation) Much energy is wasted in times of low traffic load 1. most of the time the network is not loaded 2. in that period base stations still consume a lot Damiano Rapone – Engineering&TILab, Wireless Access Innovation dept. Green networking and renewable energy sources