© GSM Association 2011 Mobile Energy Efficiency Mobile and Environmental Sustainability 20 September 2012

2 Confidential Executive summary In July 2012 the GSMA published “Mobile’s Green Manifesto 2012” which presented aggregate data derived from the Mobile Energy Efficiency (MEE) benchmarking project and quantified the industry’s enabling potential In 2010, mobile network energy consumption (120 terawatt hours) and carbon emissions (70 million tonnes) are low compared to other industries such as aviation (650 million tonnes of carbon emissions) Despite considerable growth in connections and traffic between 2009 and 2010, global mobile network energy consumption increased only modestly, by 1.6%, and declined per connection (5.4%) and per unit of traffic (19%) Mobile enabled an emissions reduction of approximately 3 million tonnes of carbon in However, mobile has the potential to reduce 900 million tonnes of carbon in 2020, largely driven by machine to machine connections gaining scale

3 Confidential The GSMA’s Mobile Energy Efficiency service benchmarks energy consumption for 35 operators representing over 200 networks

4 Confidential 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ConnectionsEnergy Consumption Energy CostCO 2 Emissions South & Central America East Europe Middle East West Europe Africa USA & Canada Asia Pacific 5 bn120 TWh$13 bn70 Mt The benchmarking output assists in the measurement and management of industry energy costs and carbon emissions If all networks with above average energy consumption are improved to the industry average, this implies a potential energy cost saving of $1 billion per annum at 2010 prices. Improving to the top quartile saves potentially over $2 billion annually Source: GSMA. Note costs exclude the capital cost of diesel generators and their maintenance 2010:

5 Confidential Estimated Total industry RAN + Core Energy TWh Estimated Total industry RAN + Core Energy per connection kWh / connection Estimated Total industry RAN + Core Energy per unit traffic kWh / GB +1.6% -5.4% -19% Estimated total industry mobile network energy increased slightly from 2009 to 2010, but decreased per connection and per unit traffic Note: This analysis is based on 34 networks where data for 2009 and 2010 was high quality, with the % changes applied to estimated global totals and averages. The dataset was equally split between developed and emerging markets but not truly representative as the growth in connections was lower than the true global total. The definition of energy here is total energy, whether from electricity or diesel Source: GSMA

6 Confidential Mobile has the potential to enable significant reduction of GHG emissions and energy costs Industry AreasMobile enablement of energy and GHG reduction Smart Grids & MetersElectricity network monitoring Smart meter: assist with micro-generation for buildings Smart meter: grid loading optimisation Transport & LogisticsFleet management Traffic monitoring, connected road signs, traffic lights Buildings, Dematerialisation, Other Increasing building automation and control Remote or smart working Near field communication Smart motors

7 Confidential Mobile has the potential to enable emissions savings that are much greater than its own emissions Forecast mobile GHG emissions vs. enabled GHG emissions savings, Mt CO 2 e Source: GSMA Analysis million M2M connections 3.5 billion M2M connections billion M2M connections Note: Includes dematerialisation. Excludes double-counting and rebound effects

8 Confidential Smart grids and meters have the largest potential for mobile- enabled emissions reduction Source: GSMA Analysis Potential GHG emission savings in smart grids & meters, Mt CO 2 e, 2020 Note: Excludes double-counting and rebound effects

9 Confidential Transportation and logistics is the other main area where mobile enabled emissions reduction is high Source: GSMA Analysis Potential GHG emission savings in transport & logistics, Mt CO 2 e, 2020 Note: Excludes double-counting and rebound effects

10 Confidential Conclusions The mobile industry needs to continue to address its own emissions, both in terms of measurement and management To fulfil the significant potential to enable emissions reductions, more work needs to be done to understand how to accelerate growth to fully exploit the potential. Reasons why the enabled emissions reduction today appears relatively low may include the the slow speed of smart grid launches, and the lack of capex in the fleet management sector during tough economic times, but this needs further study