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Huawei Whitepaper on

Energy Efficiency and

Carbon Reduction

Improving Energy Efficiency, Lowering

CO2Emissions and TCO

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Huawei Whitepaper on Energy

Efficiency and Carbon Reduction

Executive Summary ........................................................................................................... 1

Overview ........................................................................................................................... 2

Energy Efficiency for Mobile Networks .............................................................................. 3

Energy Efficiency of Broadband Networks ......................................................................... 6

Energy Efficiency by / of Cloud Computing ........................................................................ 8

Improvement of Energy Efficiency in the Manufacturing Process and Life Cycle

Assessment (LCA) ............................................................................................................. 10

ICT Drives the Transform to the Low Carbon Society ........................................................ 11

Conclusion ....................................................................................................................... 12

Glossary ........................................................................................................................... 13

Improving Energy Efficiency, Lowering CO2

Emissions and TCO

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Executive Summary

The statistics from the International Energy Agency (IEA) show that global energy consumption of

2009 declined slightly by 2% because of impacts of the financial crisis. However, such decline cannot

change the tendency for long-term rising. Between the years 2010 to 2015, global energy consumption

is estimated to rise by 2.5% annually with fossil energy continuing to play a dominant role. Many

mainstream scientists believe that the consumption of energy has caused the greenhouse effect and

a number of natural disasters. Today, humanity has to face the severe challenges of environment

protection and prevention of climatic changes. In addition, energy prices have continued to rise ever

since the 1970s and thus the manufacturing industry has suffered pressure from increasing costs. As a

result, people need to show more concern for energy efficiency.

From a global perspective, compared with coal, iron and steel, and nonferrous metal industries, the

telecommunications industry is not the most prominent industry of energy consumption or CO 2emissions. However, according to data in annual reports and CSR reports of leading telecom operators,

the telecommunication industry consumes a rather large amount of energy, and some operators werelisted as the largest energy-consumption companies in their countries. As more and more industries are

introducing ICT technologies, this situation will get worse.

Pressure from the community, public, as well as government's commitment to improve energy ef ficiency

in international organizations, is a result of both dwindling reserves of primary energy such as fossil

fuels and increasing CO2emissions, and this has resulted in pressure being placed on industry to reduce

demand. The expected rise in the cost of primary fuels, especially with rising coal and oil costs, has

had a negative impact on industry. Punitive measures such as differential pricing launched in some

countries contribute to energy price as well. On the demand side, the communication industry is in a

development phase in most emerging and third world economies and is being pressurized to reduce

energy demand in first world economies. Subscriber and service growth in emerging market and the

explosion in bandwidth growth within developed markets, will inevitably lead to new network renewal

and expansion programs. The ever increasing number of peripheral equipment running online has and

will continue to lead to increased demands for energy supply. Energy costs have risen as a result of this

growth putting operators under long-term financial pressure to reduce energy costs.

As a result of the market and public pressures, operators and equipment vendors have begun to look

at emission reduction and developed energy efficiency plans based on sustainable development. In the

past 10 years, the telecommunications industry has made great progress within this field. Technology

innovation and recent product updates has led to continued declining energy consumption per unit,

with some operators having saved more than 50% of their previous energy demand. Meanwhile, the

telecommunications industry has also played a critical role in assisting other industries to improve energy

efficiency.

Huawei, along with some of our operation partners have cooperated in research and have investigated

several areas of energy efficiency and emission reduction. We have found that in the life cycle of

telecommunications products, the operational phase consumes the most energy. In this stage, CO2

emission accounts for about 80% of total emission during a whole life cycle. During the operational

phase, energy consumption and CO2emissions generated by the mobile and fixed access networks

account for the largest energy demand and emissions. In different operating environments energy

consumption as a proportion of the access network varies, usually ranging from 50% to 70%.

As communication networks and IT networks further converged, the pipeline part of a network is

simplified for clouds, pipelines, and ends. This document focuses on the energy efficiency for pipelines

and clouds.

The energy efficiency in the pipeline part focuses on the access network. With the evolution of

networks, energy efficiency will focus on mobile broadband access and fixed broadband access,

including the access device and auxiliary measures (especially the cooling part). The discussed new

energy is mainly applied in this part.

While a large number of private cloud-based networks are emerging and a large number of public

clouds are launched, the upper-layer part of such a network has become a focus of energy ef ficiency.

From the viewpoint of supply, the manufacturing process, package process, and transport processes are

also common concerns for energy efficiency.

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Overview

When considering the holistic picture, the development of a comprehensive telecommunications

infrastructure has the potential of reducing energy consumption and CO2emissions across other

sectors of society. Telephone calls, video conferencing, and other means of telecommunication

can help to reduce the travel requirement of the people, whether this be for enterprise or private

use. SMS, Internet and other electronic means of telecommunications can also play a part in

reducing the dependency on other media such as postcards, greeting cards, letters and so forth.

The sustainable development of these kinds of services should continue to reduce the carbon

footprint of individuals and businesses. In short, telecommunication services can support and

contribute a lot to a greener GDP andto the development of a harmonious society. Over the

years, the ICT has proved to be an effective solution for reduction of energy consumption in

different industries (for example, power generating, traffic, and medicine). Take an intelligent

power grid as an example; in several top power-consuming countries (China, USA, and India),

intelligent power grids help reduce the CO2emission by about 5%.

Furthermore, the telecommunications industry is also committed to improving its own energy

efficiency and decreasing its own carbon footprint and energy consumption.

Huawei believes that improved energy efficiency and reduced emissions brought about by the

solutions delivered to market by the telecommunications industry could support the development

of a Carbon Neutral industry. This will contribute to the development of a greener national GDP,

while also reducing the cost of operations for telecommunication companies in the long-term.

We believe that TCO (Total Cost of Ownership) is key and should be considered in the network's

energy reduction and solution design.

Huawei has developed several life cycle analysis assessments (LCA) for products, and have

focused on access sector, i.e. base station within the mobile network and the access hub withinthe broadband network. Huawei draws the following conclusions about LCA: Most of CO2

emissions are generated in the operational phase. In the operational phase, the CO2emissions

account for about 80% of the total CO 2emissions over the entire lifecycle. In other words, CO2

emissions are mainly derived from the power consumption of telecom devices. Therefore, it is

essential to reduce power consumption of telecom devices.

From the energy consumption point of view, Huawei analyzed a number of customers' network

energy consumption data and found that main form of energy consumed by operators is

electrical power. Access networks, including wireless site and broad / narrow-band access site,

are the main part of power consumption. Energy consumption of wireless sites accounts for up

to 70%+ of the total energy consumption in a number of mobile operators. Energy consumption

ratio of the access part in fixed carriers is lower compared to the mobile, but in general, accounts

for more than 40%. Today, the ICT is serving more and more industries and enterprises, so the

power consumption in the cloud part will exert a greater energy consumption pressure uponoperators' networks, enterprises' networks, and industrial networks.

In summary; the network energy efficiency (in the pipeline part) focuses on the site part of each

access network. Importance should also be attached to the cloud part because cloud computing

is the tendency in the future. In the package or transport process, energy consumption can also

be reduced by adopting new logistics technologies. Additionally, because an increasing number

of governments and industries become aware of the role of the ICT as a green enabler, this

enabler rolerequires more attention.

The document describes the essential points of improving energy efficiency in the mobile

broadband part, fixed broadband part, and cloud part. The document also describes how to

improve energy efficiency in the device manufacturing phase and how the ICT helps other

industries to improve energy efficiency.

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Energy Efficiency for Mobile

Networks

In mobile networks, the energy consumption of radio sites usually accounts for more than

75%. This is a key area in mobile networks where energy saving can be sought and addressed.

When analyzing the energy efficiency of base stations, this can be analyzed from two different

perspectives, first the network topology level and secondly the network elements level.

One theory of energy-saving at the network topology level is to enhance the unit of energy

efficiency by reducing the number of sites in the network. There are two ways to reduce the

number of sites. The first is by increasing the coverage efficiency and lowering the system spending

through efficient network planning, thereby serving the most users with least number of sites. The

second is to enhance the capability of the base station equipment allowing it to cover and serve a

greater area. As with any technology, there are trade-offs that will need to be considered. Several

key technologies, such as Transmitting Diversity, Adaptive Multi-Rate (AMR), High Receive Sensitivity

and others, all contribute to increasing the radius of base station coverage. In practice, the two

ways mentioned are usually used to reinforce each other. The result being that with suitable

network planning and strong coverage-capable equipment one can save more than 25% of the

energy consumption, and realize a significant TCO saving in a wide area coverage scenario.

Compared to the network planning method described above, the energy saving at the network

element level is often more feasible in more scenarios and has less limitation. Usually, there are

only a few network elements within a mobile site. In most cases these are only the base station,

transmission and cooling equipment. Among them, the power consumption of the base station

is normally much larger than the other devices. It's the key point where energy efficiency can be

examined and implemented. In addition, the energy consumption of the cooling system needs to

be considered. After analyzing several of our customer's networks we determined that at a typical

site with air-conditioning, the energy consumption by air-conditioning can account for about 50%

of the total energy consumed at that site; so the cooling system is also a key focus for energy

saving. Sustainable energy is also another topic for consideration in the energy-saving of a site, as

in remote areas, it's often feasible to introduce a new energy system from the perspective of both

emission reduction and energy cost saving. Our focus now will be on the possible energy saving

within the base station, the cooling systems and on new energy systems.

Energy efficiency of base station equipment:

The base station is made up of three parts: the baseband unit, the radio component and the feeder.

The radio part is the largest energy-consuming entity of the base station consuming more than 80%

of the base stations energy demands. In the radio, it is the power ampli fier that is the largest energy

consumer, accounting for about 50% of the radio's power consumption. Therefore, improvement

in the efficiency of the power amplifier is one of the key areas that needs to be considered in order

to enhance energy efficiency within the base station equipment. Huawei believes that based on

Multi-carrier Power Amplifier (MCPA) and various soft energy-saving features, system resources

(for example; the RF output power and carriers in different bands) are completely shared, and

can be flexibly configured according to actual needs, thus maximizing the utilization of resources.

Our research and implementations show that compared with the traditional multi-band compact

RRUs, the broadband RRU has made great improvements in performance indexes. For example;

the number of components is decreased by 40%, the fault rate is lowered by 60%, the power

consumption is reduced by 20%, and the volume and weight are reduced by 30%. Generally, the

broadband RRU has remarkable advantages over the traditional multi-band compact RRU in energy

efficiency and fast deployment.

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Huawei believes that Single RAN is surely a solution for the future mobile networks. The Single RAN

solution is configured with the 4th-generation BTS, BSC, and transmission devices under a unified

platform, and unified NMS, and supports diversi

fied radio access technologies (for example, LTE).

Therefore, the Single RAN solution really allows a GSM/UMTS network to evolve toward a future

network smoothly. For an operator, Single RAN streamlines technology selection and network

evolution, avoids the construction of multiple radio access networks, and reduces the expenses in

site acquisition, equipment room construction, and transmission devices significantly - especially in

some developed countries of Europe, where operators are facing various difficulties for example;

outdated telecom devices, high energy consumption, and high maintenance expenses. The Single

RAN solution can be used to transform the live GSM networks, reduce the emission of greenhouse

gas, help operators improve network performance reduce the production of waste material, and

reduce the operation & maintenance expenses.

Reducing energy waste is another aspect that can enhance energy efficiency at base station sites.

Traffic levels and demand for service within the busy and leisure time of the mobile network is often

very uneven. How to reduce network power consumption during leisure time is the second key

consideration for energy saving. This can be accomplished by optimizing the power distribution by

utilizing smart turn off technology. In a typical dual-band GSM network, the most effective energy

saving technology is the "site-level" turn-off. The high frequency site is switched off in low-traffic

periods and re-powered to an on status when the traffic levels pick up based on a predetermined

demand threshold. Turning off the base station during periods of low or zero demand results in

significant power consumption savings. The BTS shut-off technologies also include transceiver

and timeslot shut-off. The difference between them lies in the granularity. Compared with

transceiver shut-off, timeslot shut-off is more conducive to refined management of low traffic and

improvement of energy efficiency.

A third key point in base stations energy-saving options is to reduce the energy waste of the feeder.

Energy consumption of the feeder itself is not large, but it has a significant impact on the coverage

ability of a particular base station site. Because it greatly reduces the power consumed at the top

of the tower, it results in a substantial decline in the efficiency of the overall base station. Feeders

can lead to an approximately 50% loss of power at a typical site. This problem can be solved by

deploying distributed base station architecture and through the design of smaller base stations.

In actual deployment scenarios of mobile networks, we found that replacing a traditional macro

base station with a distributed base station we could achieve more than 40% power consumption

savings without impacting the output power. Because of the numerous advantages (for example,

small volume, light weight, and natural cooling), the early advocated distributed BTS can also

decrease the occupied space for the leased equipment room and auxiliary cooling system, thus

reducing power consumption of sites directly or indirectly. The Huawei high-performance base

station products and the distributed architecture all help to realize a decline in TCO, with these two

factors achieving about a 10% reduction in the network TCO.

Energy Efficiency for Auxiliary Devices and New Energy System:

In most countries, mobile networks have basically covered the mainstream urban areas. The

upcoming 1,000,000,000 new subscribers are mainly distributed in suburban and remote areas.

In remote areas, however, the coverage efficiency is still low. Especially in a remote area where the

population is highly scattered, power cannot be assured and diesel engines are used for the power

supply, thus causing high cost and high emission of greenhouse gas. In this case, not only should

the BTS itself reduce its power consumption continuously, but also innovations should be made in

the auxiliary devices. Huawei has actively sought for an easy energy-saving solution for the special

market. Huawei considers the key word is "Easy". For example, power supply for devices, site

deployment, and network management capability.

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Above all, the site must support small-size configurations. For example; the site can be deployed

cost-effectively for an extremely small subscriber group and allows convenient expansion of

capacity. Here, cost-effectiveness means small capacity, small size, low-cost transmission solution,low maintenance cost, and fast deployment. Note worthily, the energy system is an urgent issue.

A small site in a remote area is usually confronted with the difficulty in attaining a power supply

or paying an exorbitant price for power obtained from a power grid, but the power consumption

of the small site itself is not high. Therefore, the operator usually uses a diesel engine for power.

However, the current diesel engine system usually has various disadvantages, for example, low

energy conversion efficiency, high purchase price, short service life, high oil consumption, and high

operation & maintenance cost. In this situation, the application of renewable energy is feasible

economically. Huawei's field test in Africa shows that compared with the original dual-diesel-engine

system, the renewable energy (for example, wind energy and solar energy) can attain a break-even

point within as early as two years. Generally, the renewable energy requires no electrical generation

or diesel oil, reduces the carbon emission, and lowers the TCO. The deployment of the transmission

system is also crucial. Sometimes, the traditional optical and microwave transmissions are not

suitable for this scenario. Huawei believes that the WiFi-based transmission mode facilitates flexibledeployment. Last but not least, maintenance is also an important issue. The renewable energy

system and BTS devices should be capable of unified and easy maintenance. Otherwise, frequent

maintenance in a remote mountainous area incurs high expenses and the round-trip traffic causes

carbon emission.

The cooling system is normally the largest energy consumption item of the sites auxiliary

equipment. To reduce the demands of the cooling systems energy consumption is therefore a key

consideration for energy-saving. For indoor macro stations, smart direct ventilation systems are a

good way to pump fresh air in and hot air out to reduce the demand and thus power consumption

of air condition systems. If the outdoor temperature is too high, and the direct ventilation cannot

meet the requirements for cooling, the smart air-conditioning system will start in order to protect

the stability of the Base station equipment. For outdoor macro-station plants, the demands of thecooling systems power consumption may also be reduced by utilizing a ventilated outdoor cabinet.

There are two typical problems in the use of direct ventilation. The first is that the battery backup

plant usually has a strict temperature range requirement and doesn't work well in some cases.

The second problem is the quality of the air. In practice, we have found that the battery problem

can be solved by the introduction of a low-power battery air-conditioning cabinet to manage the

plants operating temperature. In regions where the air quality is low, a "heat exchange system" can

substitute for the direct ventilation system to prevent the harmful effects of dust. "Heat exchange

systems" are roughly similar in principle to direct ventilation, with the advantage that the air does

not enter the equipment enclosure thereby ensuring that the equipment and the dust-protecting

grid are not affected by dust pollution and minimizing manual cleaning costs.

Undoubtedly, the application of renewable energy (for example, solar energy, wind energy, and

biological energy) is the most direct way to reduce the carbon emission. These emission-free or

low-emission energies are the most effective choices for companies to reduce carbon emissions.

Application of wind and solar energy is limited by local climatic factors. They are usually used in

remote small sites where the wind and solar resources are not enough to support the system at

those particular sites. Renewable Energy may also be used as a supplementary energy source in

a location where the public power supplies are unstable. From the solution point of view, it is

extremely necessary to design a centralized control center for the existing and future new energy

systems. A controller that is adaptable to diversified new sources of energy helps to control the

energy flexibly and utilize the diversified sources of energy reasonably in different scenarios.

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Energy Efficiency of Broadband

Networks

Today, the energy consumption of access devices accounts for more than 50% of total energy

consumption in an entire fixed network. The network architecture varies with the operator. For

some operators, the energy consumption of the access layer can account for up to 70% of the

total energy consumption. As the existing networks evolve toward broadband networks, the

traditional fixed voice service continues to decline while the energy consumption of broadband

access devices accounts for an increasing proportion. Therefore, it is of great significance for an

operator to reduce the energy consumption of the broadband access devices.

Today, DSL is the mainstream broadband access technology. The number of global xDSL

subscribers has exceeded 300,000,000 currently, and will increase annually at 6% in the coming

five years. With the "fiber advancing and copper retreating" process, the fiber access technology

is also rapidly developing. The number of PON subscribers has exceeded 20,000,000 currently,

and the annual compound growth rate of PON subscribers is estimated to be as high as 33%

in the coming five years. Therefore, xDSL and PON are the critical fields for improving energy

efficiency through broadband access.

Huawei believes that sustained technological development and product/solution optimization

help to further reduce the energy consumption of FTTx networks significantly. In the upsurge

of FTTx network construction, it is very necessary to incorporate the energy efficiency solution

to the estimation of TCO. An energy efficiency solution with high economic feasibility is the

preferred FTTx solution. Over the years, Huawei always advocated the hierarchy-based green

design philosophy and actively practices the energy efficiency philosophy throughout the design

of all components, boards, devices, and network solutions.

Above all, a highly integrated chip can be adopted to reduce the energy consumption. An

industry-leading ASIC is the key factor.

Secondly, the power consumption of each board should be reduced by 1) raising the port density

of each board to reduce power consumption per unit port and 2) actively introducing state-of-

the-art technologies to optimize board design, thus reducing power consumption during the

operation of boards. Huawei has tested to change the combined circuit of power supply (from a

dioxide to a MOS tube), thus reducing power consumption of the combining circuit by up to 80%.

Thirdly, in the device-class green design layer, the board density is raised by optimizing the heat

dissipation for the whole set, the power output is adjusted dynamically through hierarchicalpower management, and the power consumption for cooling is reduced through intelligent fans

and ground cooling.

The device-class dynamic power consumption management can dynamically adjust the power

consumption according to the data traffic of each device module and interface and even shut

off the idle modules. For example; a PON terminal is usually in a power-on state, but is only

used for a short period every day. Huawei believes that the ONT should support diversified

energy-saving modes, such as, Normal mode, Idle mode, and Battery mode. The current idle

components or modules can be disabled. For example, if the WiFi or data service of a multi-

functional home terminal is idle, you can disable the service module or lower its power, and

only enable the POTS. As a result, 70% to 85% of power consumption can be saved when

the ONU works in a low-traffic state.

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For a device that uses a fan for heat dissipation, Huawei recommends the intelligent fan

speed regulation technology. A variable-speed fan can automatically regulate the rotation

speed of the fan within a certain range according to the temperature of the cabinet.Compared with a fixed-speed fan, a variable-speed fan can reduce power consumption by

40% to 50%. In a temperate area, the fan does not rotate most of the time during the year,

thus reducing power consumption by up to 70%.

At an early stage Huawei has begun the research in the earth cooling cabinet. Huawei's

practice shows that compared with a traditional thermal transfer, an earth cooling cabinet

reduces power consumption by 70% if their cooling power is the same. Within one year,

1,000 FTTx cabinets can save the electricity consumption of 937,000 KWh. The noise of the

whole cabinet is below 40 dBA (at normal temperature), and meets the protection-class noise

standard (highest noise grade) of ETSI 300753.

Last but not least, the cost-effective network-class green design is also essential in different

application scenarios, for example, design optimization of network architecture, and smart power

management (SPM). Compared with copper access, optical access allows a longer extension

distance. The network architecture, based on optimized optical access can reduce power

consumption and decrease the number of required sites. The convergence OLT can not only

converge different devices to reduce the diversity of devices, but also decrease the number of

required devices, thus decreasing the usage of auxiliary equipment room and air conditioners and

reducing power consumption during network operation. The SPM solution can monitor, regulate,

and measure the power consumption for an access network, metropolitan area network (MAN),

and IP Core network, and provide the SPM-based application energy-saving solutions. For

example, the dynamic traffic adaptive energy-saving technology can provide power consumption

management for auxiliary network devices and subscribers.

Improving energy efficiency is a progressive process. To select an appropriate energy ef ficiency

strategy, different factors need to be considered. For example; the status quo of the networks,evolution trends of the live networks, and costs.

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Energy Efficiency by / of Cloud

Computing

Cloud computing effectively prevents the quick rise in power consumption of a traditional data

center. Cloud computing organizes different resources (for example, servers, storage devices, and

networks) into a resource pool, so that various applications can acquire the computing capability,

storage space, and software services on demand. Because of the feature of resource allocation

on demand, cloud computing raises the utilization of resources significantly and thus reduces

power consumption.

Take customer service products as an example. Huawei practices the integration of the hardware

platform, service software, and virtualized software, centralization of service processing, and

virtualization of position applications. Compared with the traditional PC solution, the green

position solution reduces power consumption by 80% for each position, and allows the service

processing server cluster to apply intelligent energy-saving control (for example, power-on and

power-off control) for the servers according to the service traffic. In 2010, Huawei applied the

distributed database technology and flexible computing technology to the BI cloud computing

system, which is a precision marketing system in actual networks. Test data shows that the BI

cloud computing system reduces power consumption by 75%, and Capex and Opex by 60%

every year.

Specifically, cloud computing reduces power consumption in the following respects: dynamic

energy-saving, power consumption management, power supply management, precision control

of power consumption for the server, and thermal management for the equipment room.

Dynamic energy-saving means that the system adjusts the number of resources dynamically

according to the service load. The technology can raise the utilization of resources and reduce

the maintenance expenses. When the resource utilization is low, the system focuses the service

load on a small number of servers and powers off the idle servers. When the resource utilization

goes up, the system awakes the powered-off servers, and diverts the ongoing services to the

awakened servers. As a result, 9% of power consumption can be saved for the data center every day.

In a data equipment room, power consumption management is to monitor and control the

power consumption of devices, and collects and analyzes the power consumption data of

various power-consuming devices (for example, IT devices, refrigerating devices, and power

supply devices) in the equipment room. Therefore, the field personnel can visually see the usage

distribution and efficiency of the power in the equipment room, and electricity charge. Based on

the data, the system can also offer some suggestions about reduction of power consumptionand improvement of energy efficiency.

For a multi-PSU IT device, the device load is changed dynamically and the number of active PUSs

also varies with the device load, thus ensuring power supply on demand. At a speci fic moment,

the active PSUs and inactive PSUs switch to each other, so that all PSUs have the opportunity to

power off for rest, thus raising the efficiency of PSUs and reducing power consumption by 8%.

Berkeley's test shows that the fault rate of PSUs is lowered by 40% and the lifecycle is prolonged

by 140%. In addition, the traditional 220 V AC power supply for the data center is changed as

the 400 V DC power supply, and the inverter component and recti fier component used in the

traditional AC UPS device are removed, thus decreasing the power supply steps and improving

the reliability. Compared with the traditional power supply mode, the power supply system raises

its energy efficiency by 10%.

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Through precision control of power consumption of servers, the power supply and cooling

resources are reallocated. The traditional power distribution mode is configured according to the

nominal values of the server and the power distribution margin is large, thus causing a wasteof power modules and lowering the power efficiency. The power capping technology allocates

power supply according to the actual power consumption of the server, thus raising the power

distribution capability of the data center by 25%. In addition, the centralized UPS device in

the power supply system of the traditional data center is removed, but the built-in mini-UPS

components are configured in the server, thus configuring the UPS on demand. In case a power

failure occurs to the data center, the mini-UPS provides emergency standby power for the server,

thus avoiding the large-scale power failure caused by a traditional UPS failure. In addition, the

power capping technology improves the efficiency of system power supply, reduces the power

consumption of the equipment room by 20%, cutting down the investment in power supply, and

lowering the TCO.

Thermal management for the equipment room improves the cooling efficiency of the existing

equipment room and is an essential aspect of energy saving for the equipment room. Typically,

the cooling power consumption of the core communication equipment room and data center

account for up to 45% to 50% of total power consumption. Reasonable design is essential to

thermal management for the equipment room. For example; the air supply mode, distribution

of cold/hot pipes, and layout optimization of high-power-consumption devices. If conditions

permit, the lower air supply & upper air return mode should be adopted in the equipment

room. Compared with the upper air supply mode, the lower air supply & upper air return mode

can raise the cooling efficiency of the air passage by 20%. The hot/cold air passage design

(position the cabinets face to face or back to back) can raise the cooling efficiency. Huawei's

practice shows that the power usage effectiveness (PUE) of the equipment room or IT devices

is improved significantly taking the preceding energy-saving measures. By taking general small-

scale transformation measures in an old equipment room, the PUE can be lowered from 1.95

to 1.8 and power consumption of the cooling system can be reduced by 16%. If a large-scale transformation scheme (for example, precision upper air supply) is implemented, power

consumption of the cooling system can be reduced by more than 30%.

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Improvement of Energy Efficiency

in the Manufacturing Process andLife Cycle Assessment (LCA)

The suppliers of telecommunications devices have to encounter the power consumption and carbon

emission in the process of manufacture and transport. In recent years, Huawei has spared no efforts to

implement various energy-saving measures in logistics, reuse of packages, and intensive transport. For

example:

Enhance the reuse of internal turnover instruments and packages.

Optimize the management of production resources with air conditioning and light system

transformation.

Implement intensive packaging and package reuse of the raw materials or semi-finished products

between Juxin (Huawei's subsidiary company) and overseas EMS manufacturers.

Ensure reasonable utilization of the transport resources through the shipment and container

estimation system.

Implement the green package concept in China and develop a metal container recycle system in

cooperation with China Mobile.

Packaging is an indispensable element in the whole manufacturing process of telecommunication

devices. In the transport process, packaging consumes a large quantity of natural resources, such as

wood. The sustained use of wood poses a long-term threat to global forest resources. In order to reduce

the consumption of timber, the industry's leading suppliers are working hard to promote renewable

packaging materials and improve the recycling of these resources. At the same time, we have reduced

the consumption of packaging materials by utilizing lightweight materials and smaller packaging,

continually investigating more appropriate packaging, and extending the life cycle of the packaging

products through the establishment and improvement of an effective Recovery System. These can besummarized by using the 6 R concept, that of: rational design, reducing supplies, recycle, reuse, recovery,

and renewable.

The "Transportation cabinet" is typically a reusable unit with associated reusable packaging. This

solution is based on recycled wood materials, visualized packaging technology, assembly technology,

standardization and appropriate design. Together with a universal logistics platform, the "Transportation

cabinet" solution reduces the consumption of natural resources such as wood from forests in the

packaging and logistics stage, and promotes sustainable development of resource-saving and

environmentally friendly packaging and logistics within the industry.

By working in partnership with our customers on their network implementation projects we have shown

that, compared to the legacy packaging solution, the "Transportation cabinet" solution can save about

50% of timber, reduce about 20% to 30% of the packaging weight, and extend up to 2 to 4 times the

service life of the Packaging, while reducing about 5% to 10% the lifecycle cost, and raising operational

efficiency about 80% to 90%.

According to Huawei shipment statistics, using this solution and our ongoing continuous improvement

program, 12,000 cubic meters of timber consumption, 2,700,000 liters of oil consumption, 750,000

KWH power, and 6,172,000 tons carbon dioxide emissions will be saved every year. This is equivalent

to an annual reduction of 14,700 square meters Deforestation, saving fuel consumption of 6,750,000

ordinary family cars in China, or saving electricity consumption of 2,080,000 ordinary Chinese families.

Huawei uses the LCA approach to research the carbon emission of telecommunications devices. LCA is

an industry-leading methodology used to measure the carbon emission in the product lifecycle. During

recent years, Huawei has used the LCA approach to assess the environmental impacts of the mainstream

product family. A universal discovery is that mainstream telecommunications products generate the

largest proportion of carbon emission in the Use phase. To provide a low-power-consumption solution

for customers is the primary goal of Huawei's green strategy. To this goal, Huawei sets KPIs for its all

mainstream products, requiring the Resource Reduction per unit product year by year. The Resource

Reduction index involves not only Energy Consumption, but also Footprint and Material. In 2009,

Huawei attained a Resource Reduction of more than 20%.

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ICT Drives the Transform to the

Low Carbon Society

All over the world, societies have become aware of and placed high expectations upon the role of

the ICT to help reduce energy consumption. It is well known that the responsible industries and

enterprises advocate the "Carbon Neutral" concept. Some well-known enterprises want to attain

the goal by offering aid (for example, plant trees) for the developing countries. The inherent nature

of telecommunications services establishes that telecommunication enterprises enjoy advantages

over other enterprises in this respect. Take a simple example. The videophone service provided by

an operator can decrease the travel demand for users in many industries, thus reducing carbon

emission. Today, some leading international organizations (for example, ITU, World Economic

Forum, UNESCO, and GeSI) are actively studying the theme that the ICT helps to reduce carbon

emission for the whole society. Take GeSI as an example. Over the years, GeSI has continuouslyconducted discussions about how the ICT reduces energy consumption of societies throughout the

world (for example, USA and Germany). Ever since 2008, Huawei, a member of GeSI, has actively

conducted the research about the role of the ICT in Germany and China, and assisted GeSI to

release the related research reports. In early 2010, the World Economic Forum invited Huawei to

be a member of the Steering Committee for Smart Power Grids, and thus pushed the reduction of

energy consumption in the power generating industry all over the world. Now, more than 90 trial

projects are implemented globally, the Smart Power Grid project team has released the preliminary

research report titled ACCELERATING SUCCESSFUL SMART GRID PILOTS. The research report

expounds the development tendency, definition, industrial chain, & business mode of global smart

power grids, as well as the required measures and solutions.

Take Smart Grid as an example. The following section details the energy-saving role of the ICT

and Huawei's efforts in this respect. From a national point of view, the power generating industryis usually the largest consumer of primary energy. Although still in the trial phase, Smart Grid has

become a national strategy in many countries. Now, Huawei is conducting numerous experiments

in China, Asia-Pacific, and North America. In China, Huawei together with the Electric Power

Research Institute has tried to consummate the electric power communication standard and seek

diversified solutions (including wireless and wired distribution automation). In Dalian, Huawei has

deployed a wired access (fiber network) solution and wireless network (WiMAX) solution, and has

assisted Liaoning Power with automation of power distribution. In cooperation with the Electric

Power Research Institute, Huawei has built an xPON and multi-network trial platform for collection

of electricity consumption information. Meanwhile, Huawei is also attending some trials of the

Smart Grid projects at both home and abroad. For example, with Advanced Metering Infrastructure

(AMI) and DA, Huawei is committed to applying advanced communication means and technologies

to the power generating industry, identifying the unique energy-saving demand in the power

generating industry, and optimizing its products and solutions.

Through peak load shaving, Smart Grid can effectively decrease the waste of resources and thus

reduce carbon emissions. Take Shenzhen as an example. The measurement data provided by

experts in the industry shows that Smart Grid can reduce the Capex by 600,000,000 Yuan (RMB),

network Opex by 10%, and carbon emissions by 5% every year. In the past one to two years,

Huawei has assisted the State Grid of China with more than 30 trials and the preliminary benefits

of Smart Grid have been clearly demonstrated. In addition, Smart Grid provides an access means

for new energy. That is, connect the recyclable electric energy generated to a power grid through

a smart means. Huawei takes the lead in applying green energy (including solar energy and wind

energy) to a communication power grid globally. In the future, Telecom power grid can not only

satisfy the power demand of telecommunications devices, but also allow operators to connect the

residual electricity to a public network, thus serving the masses in society and give the possibility to

use electrical energy to people living in location that not have other sources.

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Conclusion

Due to increasing demands for mobile subscribers in developing markets, ultra ubiquitous

broadband roll-out in developed markets, and continuing demand for high bandwidth services,

communication networks will continue to expand in the future. This means that an increasing

amount of equipments will be deployed in networks, adding to emissions and putting finances

under pressure. Operators, equipment manufacturers and other stakeholders will continue to

search for solutions to reducing costs and emissions.

Huawei is committed to continuous efforts in:

Improving the energy efficiency of our products to help our customers and partners reduce carbon

emissions and improve their TCO.

The development of a highly efficient closed-loop control system in the supply chain management,

and limiting our environmental impact in the manufacturing and transport process.

Cooperating with operators / service providers, to develop and launch more user friendly ICT services

that reduce unnecessary travel and logistics for our global society, while at the same time actively

promoting the use of clean energy and reduced carbon emissions for all of society.

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Glossary

AMR Adaptive Multi-Rate

ATAE Advanced Telecom Application Environment

BSS Base Station Subsystem

BSS Business Support System

CoC Code of Conduct

CSR Corporate Social Responsibility

DSLAM Digital Subscriber Line Access Multiplexer

FTTx Fiber to the x

IEA International Energy Agency

ICT Information and Communication Technologies

LCA Lifecycle Assessment

NGN Next Generation Network

OTU Optical Transmit Unit

PBT Power Boost Technology

POTS Plain old telephone service

QTRU Quadruple. Transceiver Unit

RRU Remote Radio Unit

TCO Total Cost of Ownership

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