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Broadband:Broadband: It’s the Green Network
OECD Workshop on ICTs and Environmental Challenges May 22-23, 2008Copenhagen Denmark
It s the Green NetworkCopenhagen, Denmark
Chris LloydVerizon CommunicationsWashington DCWashington, DC
1Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
PROPRIETARY STATEMENT
This document and any attached materials are the sole property of Verizon and are not to be usedThis document and any attached materials are the sole property of Verizon and are not to be used by you other than to evaluate Verizon’s service.
This document and any attached materials are not to be disseminated, distributed, or otherwise conveyed throughout your organization to employees without a need for this information or to any third parties without the express written permission of Verizon.
The Verizon and Verizon Business names and logos and all other names, logos, and slogans identifying Verizon’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners.
2Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
The Green Power of IT“For every extra kilowatt-hour of electricity consumed by ICT, the U.S. economy’s energy savings has increased 10
times and we have yet to optimize the full range of opportunities for additional gains in energy and economic
productivity.”*
Global CO2 Emissions
productivity.
But what if ICT could
98%
could dramatically
reduce part of this?
ICT Contribution (2%)
this?
All Other Industries & Individual Contribution (98%)
3Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
* Laitner, John A. “Skip” and Karen Ehrhardt-Martinez, “Information Technologies: the Power of Productivity.” American Council for an Energy-Efficient Economy (February 2008).
V i ’ E i t l I tVerizon’s Environmental Impact• Occupy more than 32,000
f iliti ld idfacilities worldwide• Operate more than 59,000 vehicles• Consumed 9.4 billion kilowatt hours
of electricity and 60 million gallons of gasoline and diesel in 2007
• Installing almost 70,000 miles gof fiber in 16 states
• Primary environmental impacts:– Energy usage– Management of spent materials
4Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
V i ’ E i t l I tVerizon’s Environmental ImpactCO2 Emissions Profile (metric tons)CO2 Emissions Profile (metric tons)
4 000 000
5,000,000
2,000,000
3,000,000
4,000,000
VZT
VZW
0
1,000,000
2,000,000
2005 2006 2007
VZB
2005 2006 2007
• 2007 equivalent: annual emissions of 1 4M passenger vehicles• 2007 equivalent: annual emissions of 1.4M passenger vehicles or consumption of 17.7 M barrels of oil
• 93% of emissions come from electricity consumption; 7% from fuel consumption
5Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
fuel consumption
V i ’ E i t l I tVerizon’s Environmental Impact
O f US i f bl
Carbon Intensity in Metric TonsCarbon Intensity in Metric Tons
Our performance versus US average is favorable
1,000
500US Economy
0VZ
US Economy 653 625 613
2005 2006 2007
• Metric tons of CO2 required to generate a million dollars of revenue
VZ 81.9 81.3 80.7
• Metric tons of CO2 required to generate a million dollars of revenue • 2007 US Economy average is estimated• Verizon intensity is almost 8 times better than the US economy average
6Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
E C tiEnergy ConservationOur energy conservation, waste
i d li ff dprevention and recycling efforts prevented 332,000 metric tons of CO2 in 2007, equivalent to 61,000 passenger cars not d i i 1driven in 1 year
Major Initiatives:• 2007 Network Equipment power down• 2007 Network Equipment power down • 2007 Real Estate
operational improvements2007 I t ll ti f “thi li t t ”• 2007 Installation of “thin-client computers” in Verizon Wireless call centers
• 2007 Verizon Wireless remote computer management
• 2007 Data center improvements• 2006 Micro turbines
7Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Fib COffice Parks
Small Businesses
Fiber v. Copper
Residential
ONTONT
ResidentialCopper
DistributionONTONT
ONTONT
SplitterHub
• Fiber FiOS Power is 38% of Copper DSL
CopperFeeder
Hub -Home Power Consumption- Fiber FiOS and Copper DSL powerrequirements are equivalent
C t l Offi P C ti
DSLAM CentralOffice
-Central Office Power Consumption- DSL Copper: 32 KW hours/year/line- Fiber FiOS: 12 KW hours/year/line
8Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Office
OLT
Eff t V hi l UOffice Parks
Small Businesses
Effect on Vehicle Use
Residential
ONTONT
ResidentialCopper
DistributionONTONT
ONTONT
SplitterHub
•FiOS maintenance cost is 39% less than copper
CopperFeeder
Hub •CO is 38% less•OSP feeder and distribution cable is 91% less•OSP drops are 55% more, but dropping rapidly
T l t i t f t k ll
DSLAM CentralOffice
•Translates into fewer truck rolls
9Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Office
OLT
R bl ERenewable Energy • 2007 Solar energy trial
V i T l i t ll d 140 l– Verizon Telecom installed 140 solar panels at the Carrollwood central office in Tampa, FL
– Project is expected to generateProject is expected to generate an average of 19 kilowatts to 21 kilowatts of daily energy production, reducing the building’s normal power consumption by 5.5 hours per day
• 2007 Verizon Business Fuel Cell ProjectsCell Projects
– Continues our research with hydrogen fuel cells
– Used in network facilities as backupUsed in network facilities as backup power source
– Fuel cells reduce the need for batteries and diesel backup generators
10Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
R bl ERenewable Energy• 2005 Garden City, NY Fuel
Cell Project– Installed 7 fuel cells as primary
power at switching/trainingpower at switching/training facility
– Largest installation of this technology in the countrytechnology in the country
– Provides energy needs of 1,000 single-family households
– Annual emission reduction =– Annual emission reduction = 8,000 metric tons
– Equivalent to 1,700 passenger cars not driven in 1 yearcars not driven in 1 year
11Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Fl t E i t l I iti tiFleet Environmental Initiatives • Worked with vehicle retrofitter
t d l 13 h b idto develop 13 hybrid vans:– Anticipate 40-50% fuel economy
improvement and 70-90% emission reductionemission reduction
– Seeking manufacturing partner to make these “production” vehicles
• Deployed 100 hybrid cars, p y y ,another 100 to be purchased this year:
– Will reduce greenhouse-gas emissions by 526 metric tons
– Conserve nearly 60,000 gallons of fuel annually
T i li bi di l d• Trialing bio-diesel and environmentally friendly lubricants for our construction vehicles
12Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
vehicles
M i R Eff ti lManaging Resources Effectively • 2007 Recycling:
– 19 000 tons of telecommunications equipment19,000 tons of telecommunications equipment– 19,000 tons of paper and cardboard– 352 tons of telecom equipment batteries– 36 tons of cell phone batteries collected
by Verizon Wireless storesy– Over 1M phones through Verizon
Wireless HopeLine® Program• 2007 Reduction Paper usage:
– eTree:eTree:• Verizon a founding sponsor• Encourages shareholders to sign up
for electronic deliver of all communications material
One Customer’s Bill for O M thcommunications material
• Verizon Business plants tree for each customer signing up for paperless billing
• Planted over 1700 trees
One Month
Planted over 1700 trees• 2007 Paperless billing:
– Processed more that 100 million on line payments Reduced paper use by over 400 tons
13Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
– Reduced paper use by over 400 tons and saved approx. 6,000 trees Hall of Fame Inductee
B t th i hBut there is so much more…
“…you can’t make a product greener –h th it’ f i t t ffiwhether it’s a car, a refrigerator or a traffic system – without making it smarter.”
~ Thomas Friedman
Friedman, Thomas L. “The Green Road Less Traveled. “Friedman, Thomas L. “The Green Road Less Traveled. “The New York The New York TimesTimes, July 15, July 15thth, 2007, 2007
14Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
The Green Power of IT“For every extra kilowatt-hour of electricity consumed by ICT, the U.S. economy’s energy savings has increased 10
times and we have yet to optimize the full range of opportunities for additional gains in energy and economic
productivity.”*
Global CO2 Emissions
productivity.
But what if ICT could
98%
could dramatically
reduce part of this?
ICT Contribution (2%)
this?
All Other Industries & Individual Contribution (98%)
15Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
* Laitner, John A. “Skip” and Karen Ehrhardt-Martinez, “Information Technologies: the Power of Productivity.” American Council for an Energy-Efficient Economy (February 2008).
Broadband: Green Technology
In total, use of broadband networks canIn total, use of broadband networks canIn total, use of broadband networks can In total, use of broadband networks can decrease our dependence on oil up to decrease our dependence on oil up to
11% over the next 10 years11% over the next 10 years11% over the next 10 years11% over the next 10 years- American Consumer Institute Study, 2007
Telecommuting 600M TonsgTeleconferencing 199.8M TonsE-Conservation 67.2M TonsE-Commerce 206.3M Tons E Commerce 206.3M Tons TOTAL 1B TONS
American Consumer Institute Study 2007
16Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
American Consumer Institute Study, 2007
Broadband & Smart Houses
N t kNetwork
Traveling Customer
The Power Authority in Long Island is experimentingIsland is experimenting
with wireless – connected thermostats, which canthermostats, which can save 10- 15% off energy
costs.
17Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
BHRONT withMoCA
- WWF study, 2002
Smart Home
• “Smart home:” a wired/wireless home network of consumer electronics, mobile, PC and home automation devices that cooperate seamlessly
Wired/wireless home LANLocal network storage
Converged wireline/wireless voice and data servicesLocal network storage
PC-to-TV media bridgeNetworked console game system
Enhanced broadband services (low latency, QOS, bandwidth on demand)Remote network storage
Value-added capabilities
Remotely accessible home security video systemHome automation system with remote control
Remote network storageFirewall and virus protectionOnline video rentalOnline music subscription
and services
Basic broadband connectivity, PC(s), video service, voiceservice (wireline and/or wireless) and home security system
p
The Foundation
Smart home solutions build on foundation capabilities
18Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Smart Home – Eco-System
Broadband & PC LAN
Data & Voice Multimedia Entertainment
Gaming User Generated Networking
PC LAN
Fixed to Mobile
Voice overLAN Streamed
Video
Gaming Content
On-demand Content Mobile Video
Home Management Value Added Services
Safety &
Home Controls
Energy Management
Installation &
Converged Communications
Small office / Home office
Safety &Security Healthcare
Delivery
Installation &Upgrades Break / Fix
Source: Parks Associates
19Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
The “Smart Home” requires a holistic approach
Broadband & Smart Transportation
By mapping out routes UPS saves 28.5 million miles 3 fannually which results in roughly 3 million gallons of gas
and CO2 emissions reductions of 31,000 metric tons.The New York Times (December 9 2007)- The New York Times (December 9, 2007)
20Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
A ti A dAction Agenda• What we know: Broadband can play
a greater role in facilitating energy efficiency
• We need public policies to speed:e eed pub c po c es to speed– More ubiquitous deployment– Investment in innovative applications which
promote energy efficient behaviorsp gy– Business leadership through legislation like
cap-and-trade• What opportunities are there for usWhat opportunities are there for us
to work together?
21Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Appendix:Appendix:
22Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Sources
• Broadband Services: Economic and Environmental Benefits, 2007, American Consumer Institute
• Contribution of ICT to Climate Change Mitigation, Report to World Economic Forum, 2008 (Dennis Pamlin at WWF)
• Energy and Greenhouse Gas Emissions Impact of Telecommuting and e Commerce• Energy and Greenhouse Gas Emissions Impact of Telecommuting and e-Commerce, 2007, Consumer Electronics Association
• GeSI Progress Report, 2007, Global e-Sustainability Initiative – a partnership of ICT i t d b th U N E i t l Pcompanies, supported by the U.N. Environmental Programme
• Information and Communication Technologies: The Power of Productivity, 2008,American Council for an Energy-Efficient Economy (Skip Laitner)
• Left-Hand-Turn Elimination, The New York Times (December 9, 2007).
• Sustainability at the Speed of Light, 2002, Dennis Pamlin, Global Policy Advisor for World Wildlife FundWorld Wildlife Fund
• The Internet Economy and Global Warming, 1999, Joe Romm, senior fellow at Center for American Progress
23Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
• Towards a High-Bandwidth, Low-Carbon Future, 2007, Telstra (Australian telco).
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