Ericsson and AT&T Highlight Energy Efficiency of 5G Technology
The transition to fifth-generation (5G) telecommunications networks not only promises enhanced capabilities and faster data processing but also brings significant energy efficiency improvements compared to previous generations like 3G or 4G. This efficiency translates into tangible financial sustainability benefits for businesses, as highlighted by executives from Ericsson and AT&T during the GSMA M360 LATAM forum.
The Energy Efficiency of 5G
A 5G base station can consume as little as 15% of the electricity used by a 4G radio base, emphasizing both environmental and financial sustainability for companies. According to Daniel Ríos Villa, vice president of institutional relations at AT&T Mexico, “Sustainability is a good business decision for our sector, and the data supports this.” Eduardo Castañón, vice president of commercial operations for Ericsson in the Caribbean and Northern Latin America, added, “We aim to contribute positively by reducing energy consumption in mobile networks and supporting financial sustainability.”
5G Networks: Capabilities and Efficiency
5G networks are designed to handle large volumes of data quickly, making them more powerful for advanced communication functions. They also enable new opportunities for various industries through integration with technologies like the Internet of Things (IoT) and artificial intelligence. Despite these capabilities, energy efficiency is crucial for telecom companies due to high operational costs.
The Financial Impact of Energy Consumption
In 2025, the global mobile network industry operated approximately 7 million base stations across various generations. This translates to an annual economic cost of $25 billion for mobile service providers, which is more than double the revenue generated by America Movil in the first quarter of 2025 ($12.1 billion). The energy expenses of cellular operators worldwide equal the annual revenue of Mexico’s Telcel for two years and two months.
Ericsson’s Sustainability Efforts
Ericsson’s Eduardo Castañón explained, “We develop and evolve technologies to reduce energy costs. Our products can consume up to 30% less energy than previous generations, and we aim to minimize carbon-based components. For instance, we’ve reduced the weight or size of our equipment by 50%.” Ericsson projects that, by 2029, there will be 50 billion connections (people and machines) worldwide, emphasizing the importance of sustainability strategies.
AT&T’s Sustainability Initiatives
Daniel Ríos from AT&T stated, “Optimizing energy efficiency and becoming more resourceful is crucial. AT&T has reduced carbon dioxide emissions by 9,000 tonnes and achieved a 30% decrease in energy consumption with 5G. We’ve also increased renewable energy usage by 45%, with 20% of our network now powered by renewables, primarily solar energy.”
5G’s Global Impact and Future Prospects
By 2024, 5G networks served 2.3 billion people, with users increasing their service demand by 20%. Ericsson estimates that a Mexican user consumes 13 gigabytes monthly, rising to 36 gigabytes in five years. This technology is projected to save 500 million tonnes of carbon dioxide by 2030, contributing to an 8.4% global GDP growth (up from 5.8% in 2024) and generating a $11 trillion ecosystem of products and services.
Key Questions and Answers
- Is sustainability a good business decision for the telecom sector? Yes, both environmentally and financially, sustainability is a wise choice.
- What are the benefits of 5G networks regarding energy efficiency? 5G base stations consume significantly less electricity than 4G counterparts, leading to financial sustainability benefits.
- How do 5G networks contribute to the global economy? The GSMA projects that 5G will contribute $11 trillion to the global economy by creating a thriving ecosystem of products and services.
- What steps are Ericsson and AT&T taking to promote sustainability? Both companies are developing energy-efficient technologies, minimizing carbon footprints, and increasing the use of renewable energy sources.
