Energy efficiency as a lever

Dealing with energy efficiently makes a key contribution to cutting CO2 and reducing costs. This doesn't only apply to our own company. It also helps our customers.

The biggest lever for reducing energy consumption is increasing energy efficiency in our network. This network has been undergoing continuous expansion during recent years. In 2009, it comprised 27,376 mobile phone base stations: 17,168 for GSM and 10,208 for UMTS. This means that the share of our network in the total energy requirement of Telefónica O2 Germany has risen to 89 percent (2008: 87%).
Saving energy in the network
 Energy consumption 2007 to 2009
Network expansion is always associated with increasing energy consumption. That's why our concern is always to reduce the specific consumption. However, since the pace of network expansion was faster in 2009 than the acquisition of new customers, the specific energy consumption also went up. We are now taking measures that will be able to reduce overall energy consumption in the network. In 2009, consumption was 325,395,262 kilowatt hours.

We use particularly efficient transmission units when we erect our base stations. Over the last two years, we have exchanged all the old units at some 5,000 base stations (2,436 in 2008 and a further 2,500 in 2009) and replaced them with energy-saving units. Their power consumption is 300 watts less than that of the original stations, depending on the load applied to the network. We saved a total of 9 million kilowatt hours of electricity in 2009 - this is roughly as much electricity as 2,200 Europeans consume each year.

We also modernised our switching centres. The latest network technology means that we consumed about 7.6 million kilowatt hours less energy in 2009 than in 2008.

A number of subsidiary companies of Telefónica SA - particularly in Latin America - have already set up self-supplying mobile phone base stations. These stations generate the electricity they need from wind power or solar panels. We have been carrying out tests in Germany to establish whether economic and environmentally effective options are available for self-supply of mobile phone base stations in Germany. However, the results have shown that investment costs are currently higher than the projected savings.
Offering energy-efficient products and services
Even if we don't actually manufacture mobile phones ourselves, we pay a great deal of attention to energy efficiency. For example, O2 has been marketing the SonyEricsson "GreenHeart" mobile phone for the past year. The environmental impact of this device is reduced both in the production process and in the product design. According to the details provided by the manufacturer, the measures have reduced the CO2 footprint of the unit by 15 percent. O2 has also been supporting the EU Directive adopted for 2010 that defines stricter limits for standby consumption of mobile phone chargers.

However, we are also developing services ourselves that help to restrict emissions and consumption of resources. One success story in this area relates to the business trips avoided as a result of the telephone conferences we mediate. This also involves a substantial cost-saving. Over the coming year, we will be formulating a holistic concept extending beyond these measures for energy and CO2 reduction in our products and services. The aim is for this to be a constituent element of the O2 climate strategy also being developed in 2010.