Two for one deal: Telecom can save billions while reducing energy consumption

Long before Barack Obama represented Illinois in the Senate, another politician in that job was misquoted as quipping “a billion here, a billion there; pretty soon you’re talking real money.” While Everett Dirksen may not have said those exact words, they aptly describe the eye-popping prices on today’s economic stimulus proposals.

These plans evoke images of a staggering debt we will pass to our children. There seems little choice as rising unemployment and the prospect of economic collapse may be the alternative.

Things may not be as bleak as they appear. Putting America and the rest of the world back on economic sound footing could save money and reduce carbon emissions.

How could that be? The answer lies in Moore’s law. Moore predicted the number of transistors in an integrated circuit would double about every two years. That law has held up for more than four decades. That’s why laptops, mobile phones and other devices improve in performance while dropping in price.

One answer to the current economic troubles is to extend Moore’s law and its ability to cut costs and boost performance into new areas.

Achieving energy-efficiency by applying communications and information technologies could save $950 billion on energy over the next 12 years, according to a McKinsey & Company analysis in the Smart 2020 report, commissioned by the Global eSustainability Initiative.  Those energy savings would reduce carbon emissions by 7.8 billion metric tons.

The report foresees a different world, where more people work from home and networked information systems reduce energy usage.

The telecom industry has embraced the challenge to become greener and more efficient. Verizon vowed to cut by 20% the electricity consumed by new equipment. AT&T joined a global consortium, the Green Grid, to reduce energy consumption related to data centers. My company, Tellabs is making telecom network equipment to help service providers reach these goals.

The opportunities for energy savings through technology extend to unexpected places. For example, we helped Brazilian railroad MRS Logistica centralize its management system and enable “smart logistics.” MRS can put more trains on the tracks, increasing revenue. Compared with trucks, trains save energy and reduce carbon emissions.

But such activities go well beyond something what a single company or industry can undertake on its own. As the Smart 2020 report stated, this change requires a global effort with industries and governments working toward shared goals.