Broadband: It’s It s the Green Network OECD Workshop on ICTs and Environmental Challenges May 22-23, 2008 Copenhagen Denmark Copenhagen, Chris Lloyd Verizon Communications Washington DC Washington, Confidential 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. 1 PROPRIETARY STATEMENT This 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. Confidential 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. 2 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.”* productivity. But what if ICT could dramatically reduce part of this? Global CO2 Emissions 98% ICT Contribution (2%) All Other Industries & Individual Contribution (98%) * Laitner, John A. “Skip” and Karen Ehrhardt-Martinez, “Information Technologies: the Power of Productivity.” American Council for an Energy-Efficient Economy (February 2008). Confidential 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. 3 V i Verizon’s ’ E Environmental i t l IImpactt • Occupy more than 32,000 f iliti worldwide facilities ld id • 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 g almost 70,000 miles of fiber in 16 states • Primary environmental impacts: – Energy usage – Management of spent materials Confidential 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. 4 V i Verizon’s ’ E Environmental i t l IImpactt CO2 Emissions Profile (metric tons) 5,000,000 4 000 000 4,000,000 3,000,000 VZT VZW 2,000,000 VZB 1,000,000 0 2005 • • 2006 2007 2007 equivalent: annual emissions of 1 1.4M 4M passenger vehicles or consumption of 17.7 M barrels of oil 93% of emissions come from electricity consumption; 7% from fuel consumption Confidential 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. 5 V i Verizon’s ’ E Environmental i t l IImpactt Carbon Intensity in Metric Tons O performance Our f versus US average is i favorable f bl 1,000 500 US Economy VZ 0 • • • 2005 2006 2007 US Economy 653 625 613 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 Confidential 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. 6 E Energy C Conservation ti Our energy conservation, waste prevention i and d recycling li efforts ff prevented d 332,000 metric tons of CO2 in 2007, equivalent to 61,000 passenger cars not di driven iin 1 year Major Initiatives: • 2007 Network Equipment power down • 2007 Real Estate operational improvements • 2007 IInstallation t ll ti off “thi “thin-client li t computers” t ” in Verizon Wireless call centers • 2007 Verizon Wireless remote computer management • 2007 Data center improvements • 2006 Micro turbines Confidential 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. 7 Fib v. C Fiber Copper Office Parks Small Businesses ONT ONT Residential ONT Copper Distribution ONT Splitter Hub Copper Feeder Central Office DSLAM • Fiber FiOS Power is 38% of Copper DSL -Home Power Consumption - Fiber FiOS and Copper DSL power requirements are equivalent -Central C t l Offi Office Power P Consumption C ti - DSL Copper: 32 KW hours/year/line - Fiber FiOS: 12 KW hours/year/line OLT Confidential 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. 8 Eff t on Vehicle Effect V hi l Use U Office Parks Small Businesses ONT ONT Residential ONT Copper Distribution ONT Splitter Hub Copper Feeder •FiOS maintenance cost is 39% less than copper •CO is 38% less •OSP feeder and distribution cable is 91% less •OSP drops are 55% more, but dropping rapidly •Translates T l t into i t fewer f truck t k rolls ll Central Office DSLAM OLT Confidential 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. 9 R Renewable bl E Energy • 2007 Solar energy trial – V Verizon i T Telecom l iinstalled t ll d 140 solar l panels at the Carrollwood central office in Tampa, FL – Project 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 Projects – Continues our research with hydrogen fuel cells – Used in network facilities as backup power source – Fuel cells reduce the need for batteries and diesel backup generators Confidential 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. 10 R Renewable bl E Energy • 2005 Garden City, NY Fuel Cell Project – Installed 7 fuel cells as primary power at switching/training facility – Largest installation of this technology in the country – Provides energy needs of 1,000 single-family households – Annual emission reduction = 8,000 metric tons – Equivalent to 1,700 passenger cars not driven in 1 year Confidential 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. 11 Fl t E Fleet Environmental i t l IInitiatives iti ti • Worked with vehicle retrofitter t develop to d l 13 hybrid h b id vans: – Anticipate 40-50% fuel economy improvement and 70-90% emission reduction – Seeking manufacturing partner to make these “production” vehicles • Deployed p y 100 hybrid y cars,, 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 Trialing i li bio-diesel bi di l and d environmentally friendly lubricants for our construction vehicles Confidential 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. 12 M Managing i R Resources Eff Effectively ti l • 2007 Recycling: – – – – 19,000 19 000 tons of telecommunications equipment 19,000 tons of paper and cardboard 352 tons of telecom equipment batteries 36 tons of cell phone batteries collected byy Verizon Wireless stores – Over 1M phones through Verizon Wireless HopeLine® Program • 2007 Reduction Paper usage: – eTree: • Verizon a founding sponsor • Encourages shareholders to sign up for electronic deliver of all communications material • Verizon Business plants tree for each customer signing up for paperless billing • Planted over 1700 trees One Customer’s Bill for O Month One M th • 2007 Paperless billing: – Processed more that 100 million on line payments – Reduced paper use by over 400 tons and saved approx. 6,000 trees Hall of Fame Inductee Confidential 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. 13 B t there But th is i so much h more… “…you can’t make a product greener – whether h th it’ it’s a car, a refrigerator fi t or a ttraffic ffi system – without making it smarter.” ~ Thomas Friedman Friedman, Thomas L. “The Green Road Less Traveled. “The “The New York Times,, July 15th, 2007 Times Confidential 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. 14 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.”* productivity. But what if ICT could dramatically reduce part of this? Global CO2 Emissions 98% ICT Contribution (2%) All Other Industries & Individual Contribution (98%) * Laitner, John A. “Skip” and Karen Ehrhardt-Martinez, “Information Technologies: the Power of Productivity.” American Council for an Energy-Efficient Economy (February 2008). Confidential 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. 15 Broadband: Green Technology In total, use of broadband networks can decrease our dependence on oil up to 11% over the next 10 years - American Consumer Institute Study, 2007 Telecommuting g 600M Tons Teleconferencing 199.8M Tons E-Conservation 67.2M Tons E-Commerce E Commerce 206.3M Tons TOTAL 1B TONS American Consumer Institute Study 2007 American Consumer Institute Study, 2007 Confidential 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. 16 Broadband & Smart Houses N t Network k Traveling Customer The Power Authority in Long Island is experimenting with wireless – connected thermostats, which can save 10- 15% off energy costs. - WWF study, 2002 ONT with MoCA BHR Confidential 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. 17 Smart Home • “Smart home:” a wired/wireless home network of consumer electronics, mobile, PC and home automation devices that cooperate seamlessly Value-added capabilities and services The Foundation D Wired/wireless home LAN D Local network storage D PC-to-TV media bridge D Networked console game system D Remotely accessible home security video system D Home automation system with remote control D Converged wireline/wireless voice and data services D Enhanced broadband services (low latency, QOS, bandwidth on demand) D Remote network storage D Firewall and virus protection D Online video rental p D Online music subscription Basic broadband connectivity, PC(s), video service, voice service (wireline and/or wireless) and home security system Smart home solutions build on foundation capabilities Confidential 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. 18 Smart Home – Eco-System Data & Voice Broadband & Networking Fixed to Mobile PC LAN Voice over LAN Home Management Home Controls Safety & Security Energy Management Healthcare Delivery Multimedia Entertainment Gaming On-demand Content User Generated Content Streamed Video Value Added Services Converged Communications Installation & Upgrades Small office / Home office Break / Fix Source: Parks Associates The “Smart Home” requires a holistic approach Confidential 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. 19 Broadband & Smart Transportation By mapping out routes UPS saves 28.5 million miles annually which results in roughly 3 million gallons off gas and CO2 emissions reductions of 31,000 metric tons. - The New York Times (December 9 9, 2007) Confidential 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. 20 A ti A Action Agenda d • What we know: Broadband can play a greater role in facilitating energy efficiency • We e need eed pub public c policies po c es to speed: speed – More ubiquitous deployment – Investment in innovative applications which promote energy p gy efficient behaviors – Business leadership through legislation like cap-and-trade • What opportunities are there for us to work together? Confidential 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. 21 Appendix: Confidential 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. 22 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 e-Commerce, Commerce 2007, Consumer Electronics Association • GeSI Progress Report, 2007, Global e-Sustainability Initiative – a partnership of ICT companies, i supported t db by th the U U.N. N E Environmental i t lP 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 Fund • The Internet Economy and Global Warming, 1999, Joe Romm, senior fellow at Center for American Progress • Towards a High-Bandwidth, Low-Carbon Future, 2007, Telstra (Australian telco). Confidential 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. 23