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October 12, 2021

Why sustainability can be good for telcos

By GlobalData Technology

With COP26 fast approaching and climate change very obviously impacting the planet from pole to pole, most telecoms companies are focusing on sustainability to reduce their environmental impact.

This process usually starts with a switch to sustainable energy and electric vans in telcos, but the challenge stretches right along the value and supply chain, from CPE suppliers through service providers to customers. A recent event with Colt highlighted that it has reduced power usage by 90% and its footprint by 95% by switching from legacy equipment. Both of which translate into cost savings.

More important; however, is the fact that its core target customers are requiring sustainability commitments from their service provider. Colt analysed its base and discovered that there is a correlation between its improving NPS (Net Promoter Score) and revenue and EBITDA growth.

Source: Colt. Note that the figures on the y axis only represent the NPS score and do not reflect revenue or EBITDA numbers.

This explains why ESG is not just a fad or a tick-box exercise. It can reduce costs, help attract the best people talent, and – most importantly – drive the acquisition, retention and growth of customer relationships.