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June 22, 2012
Going green has become a compelling necessity for the telecom space
Countries across the world are implementing action plans and setting carbon emission targets to address the challenge of climate change. India, too is taking baby steps in this direction. The telecom industry alone accounts for about 1 per cent of the country's total CO2 emissions. As against this, the global infromation and communication technology  industry's share in total CO2 emissions is 0.7 per cent. 
Going green, therefore, has become an immediate and compelling necessity for telecom operators, vendors and tower companies. As the second largest and fastest growing market in the world, the growth potential, especially in the rural areas, is high. While expanding, however, the sector also needs to be conscious of climate change concerns. According to a study by AT Kearney, almost 50 per cent of the sector's current carbon footprint can be attributed to diesel use.
Aware of these issues, service providers and tower companies are promoting the use of energy efficient and renewable energy solutions. Several pilot projects are under way to achieve higher energy efficiency and reduce carbon emissions. Still, about
60 per cent of the telecom industry's power requirement is met through diesel generators and the remaining from the grid.
These trends will make the achievement of TRAI's objective of reducing tower companies' carbon emissions by 5 per cent in 2012-13 and 17 per cent by 2018-19 unrealistic. According to industry analysts, though the industry has been receiving incentives and subsidies for reducing its carbon footprint, more efforts are required to push the green agenda.
Meanwhile, Telecom Equipment Manufacturers' Association (TEMA) has written to the prime minister pointing out that diesel consumption by telecom operators is resulting in a huge subsidy burden. According to TEMA, at an average of about
Rs 10 per litre, the central government is providing diesel subsidies of Rs 43.8 billion to the operators and tower companies, which have strong financials.
The industry body has, therefore, suggested the framing of strong regulatory guidelines to either withdraw the diesel subsidy for telecom service providers or introduce an appropriate one-time tax per tower on service providers and tower companies. Understandably, operators and tower companies have opposed this recommendation, saying that TEMA's views are "misleading, uncalled for, and devoid of any merit".
While a final decision on the issue is yet to be taken, telecom operators and tower companies would do well to establish efficient infrastructure operating on green energy sources sooner rather than later.


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