NTT Data & Nokia : Telco’s Path from Paradox to Purpose

As both a key enabler of global sustainability and a significant energy consumer, the telecommunications industry is confronting a defining challenge to its traditional model of growth. On one hand, it is the fundamental enabler of a digitised, more efficient world, providing the connectivity that supports green transformations in almost every other sector.

On the other hand, it is a significant and growing consumer of global energy, with an expanding infrastructure footprint that contributes to carbon emissions and a mounting e-waste crisis. The dual identity, as both a source of the problem and a key to its solution, defines the sector’s challenge for the next decade.

To help navigate the complex landscape, NTT DATA’s recent white paper, “Rethinking Connectivity: A White Paper on Sustainable Telecom and Green Infrastructure,” presents a detailed roadmap for industry transformation.

Authored by Rakesh Ranjan Tiwari, Open Networks Center of Excellence Leader at NTT DATA, the paper explores how telecom operators can overcome the sustainability paradox and build a greener, more connected and profitable future.

Navigating the sustainability paradox

The challenge for operators is immense. As the white paper outlines, the exponential growth in data traffic necessitates constant network expansion.

The infrastructure is incredibly power-hungry; the Radio Access Network (RAN) alone consumes 73% of a network’s total energy and base station energy costs can account for up to 50% of an operator’s OPEX.

Yet, the same infrastructure enables smart cities and telemedicine, while new technologies like 5G are up to 90% more energy-efficient than their predecessors.

To ensure the enabling effect outweighs the industry’s own footprint, a dual strategy is necessary. Operators must look both inward at their own consumption and outward at their role in the broader ecosystem.

“One, continue to invest in the internal consumption of power and sustainability inside the organisation,” says Rakesh. “And second is to continue to look forward to the opportunities cross-vertical where every industry can step up, share their collaborative solution approach.”

Echoing Rajesh’s view is Subhagata Mukherjee, Vice President, Global Head of Sustainability at Nokia, who sees the dual role as the core of the industry’s potential impact.

“I am not in favour of taking one side or the other, but where we think the real difference to humankind can come in is what we can do with leveraging digitalisation to move the needle on ESG.”

Connectivity is now a non-negotiable utility, but its method of delivery will define its net effect on the planet. Rakesh stresses that simply providing a connection is no longer sufficient; efficiency and sustainability must be central to the process.

He notes that new tools are making it possible, explaining, “And the good part is, since we are evolving with AI and analytics use cases, that is going to give us a wonderful insight on how to reduce and how to improve.”

Overcoming inertia: Why 39% of Telcos lack a clear strategy

Despite the urgency, the white paper reveals a significant gap between rhetoric and action, noting that 39% of telcos do not disclose a specific net-zero strategy.

While it is tempting to attribute it to a lack of intent, the reality is often more complex, rooted in deep-seated structural and operational challenges.

A primary hurdle is the difficulty in establishing a clear baseline. Effective decarbonisation relies on accurate data, yet many operators struggle with the sheer scale of measurement necessary.

“Because the challenge which I have seen in my research is that most companies are not able to quantify the data which they are currently using,” Rakesh notes. “Maybe they are using certain bits and pieces of sustainability, but they are not able to quantify it.”

The data deficit is a universal problem for sustainability professionals. As Nokia’s Subhagata confirms, it is the single biggest obstacle to progress. “Personally, as for my role in our world of sustainability, one of the biggest challenges is data.

"Unless we know what’s happening in our operations, in our supply chain, in our products, in our customers’ networks or in our entire value chain, it’s impossible to make an impact.”

This is where external stakeholders – particularly regulators and investors – play a vital role in fostering a more unified approach and breaking down industry silos.

“If regulators and investors can come together and play a catalyst role,” Rakesh argues. “How? By enabling the clear, precise and not only sector-specific but collaborative goals for regulations to ensure that we will continue to invest in sustainability.”

A framework for change: Reimagining the path to sustainability

To translate ambition into action, the white paper introduces the RITAM (Reimagine Technology Acceptance Model). It is a five-step framework (Identify, Prioritise, Design & Validate, Adapt, Monitor) designed to embed sustainability into an organisation’s core strategy.

For Rakesh, the model is a call to action to rethink every aspect of the business fundamentally.

“We have to reimagine the current way of working in people, process, technology and infrastructure,” he insists.

The reimagined approach is crucial for overcoming common hurdles like high initial investment costs and internal resistance. Rather than pursuing a costly and disruptive “big bang” overhaul, RITAM advocates for a more measured, data-driven methodology that de-risks projects and proves ROI.

Rakesh challenges operators to consider the consequences of simple replacement strategies: “What happens to the product which you have removed? That is again garbage, like a waste material.”

Instead of the wasteful approach, he advocates for a more thoughtful process. “So rather than doing in a big bang approach of conversions, go with the statistical methodological approach of RITHAM, re-strategise, re-energise and re-prioritise. Then go step by step to solve the problem.”

Tackling the e-waste mountain with a circular economy

One of the most pressing environmental challenges is electronic waste, projected to reach a staggering 74.7 million tonnes globally by 2030.

The crisis presents a massive financial opportunity, with the market for recycled hardware estimated to be worth between US$45 billion and US$80 billion annually by 2030. The key is adopting a circular economy model, yet a primary hurdle remains a lack of awareness.

“Most of the organisation is not aware of what to do with the old technology or the old waste,” says Rakesh. “But you are losing money which you have already invested, you are losing the assets which are still functioning.”

A true circular economy moves beyond recycling to create a system of reuse, refurbishment and repair, turning waste into a valuable asset.

The approach generates new revenue streams, forces a clear segregation of materials and critically, informs future design. “It’s like a circular economy going from inception to the sales, then post support sales, going and coming back in a very effective way,” Rakesh concludes.

The business imperative: From future risk to present-day reality

For years, sustainability was framed as a future concern. That is no longer the case. The motivation for major vendors like Nokia to accelerate their net-zero target by a decade to 2040 is driven by the fact that climate change is a pressing, present-day business risk.

Subhagata provides a stark operational example. “For a long time, we had already seen it in our value chain, that it’s been almost impossible to have our service engineers work in the middle of the day,” he says, referring to the effects of extreme heat in the global south. It directly impacts operations, safety and the bottom line. “The reason we had to accelerate our net-zero target is that climate change is a business issue for Nokia. It is a business issue for our customers.”

Such an imperative is driving tangible innovation. Concrete actions are being taken to address the industry’s most significant energy consumption points, like the RAN. “Our mobile networks business, which is one of the largest businesses we have, has been able to reduce its 5G base station average power consumption by 50% since the baseline of 2019,” Subhagata notes.

Ultimately, the business-led approach recognises that the ICT sector must lead for others to follow.

As Subhagata puts it, “If, as a player in the ICT industry, we don’t accelerate and leap forward to bring the target to 2040, we can’t expect the energy sector to take the benefit of it and reach the Paris agreement goal of 2050.”

The journey towards a sustainable telecommunications industry is undeniably complex. Yet, the path forward is becoming clearer. The transformation means a profound shift in mindset: from viewing sustainability as a compliance cost to recognising it as a driver of efficiency, innovation and long-term value.

By embracing data-driven frameworks, pioneering circular economies and collaborating on new network models, the industry can resolve its central paradox.

With major players like Nokia moving their net-zero targets to 2040, it is clear the “baby steps” of change are accelerating. The time for deliberation is over; the era of implementation has begun.