Business
Mobile Operators To Spend $15bn On Diesel
Mobile Operators are expected to spend $14.6 billion on diesel to power off-grid base stations in developing markets by 2020. In countries like Nigeria, and other African countries with unreliable public power supply, mobile operators rely entirely on alternative source of energy to power their networks.
These additional Investments hamper the speed of rollout and expansion of mobile networks into sub-urban and rural areas.
To address this challenge, a new initiative is underway to support mobile operators in exploring the use of renewable energy base stations as a means of optimising capital and operating expenditures.
The GSMA, the body that represents the wouldwide mobile communications industry through its Green power for mobile (GPM) programme is working with the international finance corporation (IFC), the private sector arm of the world bank Group on the alternative initiative.
Through this collaboration mobile operators in developing markets can benefit from technical assistance programmes, market research, and knowledge sharing programmes to help them implement large scale renewable energy powered networks.
The overall goal is to make cost effective renewable energy solutions a widely used power source for off-grid locations by 2012. The initiative offers a direct way to accelerate the deploying of renewable energy in off-grid parts of the developing world. IFC plans to identify and pursue green power investments that expand the mobile industry’s use of renewable energy powered networks in developing countries.
IFC will act independently as an anchored investor, offering developing country mobile operators a variety of financial instruments to enable the implementation of viable business model that leverage renewable power for long term efficiency gains.
Rob Conway, CEO and member of the Board, GSMA said “working together with IFC, we hope to address this by helping mobile operators to expand network coverage into remote regions, deploy renewable energy base stations, reduce their energy costs and minimize impact on the environment.”
“IFC is delighted to collaborate with, GSMA to enable the expansion of mobile coverage to remote regions and under-served in the developing world, thus bridging and digital divide, base on the highest standards for a sustainable environment,” said Mohsen Khalil, director, joint world Bank/IFC Global ICTs department, IFC.
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