Why circular economy is the key to sustainable telecom growth

The industrial revolution has led to mass manufacturing of goods. Huge material and energy resources are required for this mass manufacturing. The mass production factories emit Green House Gases (GHG) and generate waste. The raw material resources required are limited on earth and more the production, faster will be the depletion. As per an estimate, globally, by 2050, the rate of consumption of resources would be three times higher than the rate at which earth can replenish. Global warming and climate change are the consequences. A new sustainable development model called circular economy is the only solution to these problems.

Our country has accorded high priority to move towards circular economy, as reflected in the Panchamrit announcement and G-20 Delhi declaration.

Linear Vs Circular Economy

In the linear economy model or the traditional model of economy, raw materials are collected and transformed into products. Consumers use these products until discarding them as waste, without bothering about their ecological footprint and consequences. This model follows the ‘take - make- consume- dispose’ step by step plan.

In the telecom/ICT sector, e-waste generation and its responsible and safe disposal is a big challenge, as e-waste doesn't biodegrade and accumulate wherever dumped. India is the third largest e-waste producer. In 20-21, 13.46 lakh tonne e-waste was generated in India.

Circular Economy (CE) is a model of production and consumption, implying reducing waste to minimum. It deals with both environment and economic aspects. In an ideal CE, all waste generated would be reused as raw material in the production process. It works on the principles of:

1. Reduce (leads to environmental sustainability),

2. Reuse (leads to economy growth by creating new jobs, stimulating innovation),

3. Recycle (leads maximising the use of existing resources)

4. Rethink (leads to community well-being by promoting sustainable practices by encouraging innovative thinking to redesign products and processes for circularity).

Circular economy in telecom sector

The Indian telecom sector is one of the fastest growing sectors of the economy and has hugely added to the economy. Its value to the economy is 6 per cent of GDP. However, since telecom networks are expanding rapidly and since obsolescence is very fast in telecom, there is huge consumption of resources as well as generation of large amounts of e- waste.

As per ITU- T L.1020 (which gives guidance for operators and suppliers to migrate towards circular ICT), circular ICT is ’restorative and regenerative by design and aims to keep productive components and materials at their highest utility and value at all times while reducing waste streams (ideally net Zero)’. This recommendation states the following as the framework of the circular economy:

1. Repairability

2. Durability

3. Reusability

4. Recyclability: (one tonne ore produces 1.4 Grams of AU but one tonne of mobile phone PCBs give 1.5 Kg of AU and 75 per cent energy savings, which shows the importance of Recyclability)

5. Recoverability

6. Refurbish- ability

7. Re-manufacturability

8. Upgradeability- example: The Atma Nirbhar 4G equipment being supplied to BSNL is upgradable to 5G.

Average life of equipment can be decided by the durability. Apart from technical feasibility and commercial viability, environmental sustainability is also equally important in the telecom sector to have circularity.

Steps taken by Indian government for e-waste management

The Ministry of Environment, Forest and Climate Change introduced a set of e-waste management rules and these rules came into force from April 1, 2023.

1. These rules apply to every manufacturer, producer, refurbisher, dismantler and recycler involved in manufacturing, sale, transfer, purchase, refurbishing, dismantling, recycling and processing of e-waste or electrical and electronic equipment.

2. They are applicable to electrical and electronic equipment including IT and Telecom equipment

3. They also mandate the reduction in the use of lead, mercury, cadmium among others in manufacturing of electronic equipment.

Extended producer responsibility

1. One of the cornerstones of e-waste management is extended producer responsibility (EPR), i.e. the responsibility of any producer of electrical or electronic equipment for meeting recycling targets.

2. Recycling to be done only through registered recyclers of e-waste to ensure environmentally sound management of such waste.

3. Producers may take help from third party organisations such as collection centres, dealers etc.

Benefits of CE in telecom

1. Economic benefits

1.1 Extending the life of telecom equipment reduces replacement costs

1.2 Reduces capital expenditure

1.3 Generates additional revenue from repair and reuse

2. Environmental benefits

2.1 Minimises e- waste

2.2 decreased carbon emissions due to recycling

2.3 Minimises the release of toxic elements in the environment

2.4 Energy savings

3. Social benefits

Increase job opportunities in refurbishment and recycling

4. Global Edge

4.1 Positions the telecom sector as a global leader in sustainability

4.2 Paves the way for reduced carbon footprint in other sectors like health care and travel through technological advancements.

Policy initiatives for CE in Telecom

1. TRAI 2011- approach towards green telecom

1.1 Encouraged the use of energy- efficient buildings and network systems

1.2 Highlighted the disposal requirements for mobile phones, batteries, chargers etc.

2. TRAI 2011-Telecom Equipment Manufacturing underlined the need for necessary shift towards domestic manufacturing

3. TRAI 2017- approach towards Sustainable Telecom

3.1 Focussed on the voluntary adoption of energy efficient equipment/ practices in operation

3.2 Suggested improvements in network planning and optimisation

4. TRAI 2019-CE in Data Centres

Suggested establishment of green data centres that can reduce emissions by using more efficient off- the- shelf- technology and better energy management

5. ERSO (Electronic Repair Service Outsourcing) Pilot Project 2023

This project was launched by MEITY (MInistry of Electronics and Information Technology) to assess the feasibility of India as a global repair hub

6. National Digital Communication Policy (NDCP), 2018

6.1 Emphasis on adoption of renewable energy in telecom

6.2 Promotes green telecom R&D

7. Ministry of Consumer Affairs (MCA):

To support retail and end use consumers in product life extension, MCA has deployed a Right-to-Repair framework to allow consumers the opportunity to repair their products cost- effectively instead of replacing them with new products. It includes four focus areas:

1. mobile phones

2. tablets and ICT related equipment including universal charging ports/ cables,

3. batteries

4. servers and data storage

8. It has been recommended by the inter ministerial committee that an additional incentive of 1 per cent in PLI (Production Linked Incentive) scheme be given if circularity is there in the products. In the PMI (Preference for Make in India) scheme, a 5 per cent bonus is recommended if the local content has circularity. In the TTDF (Telecom Technology Development Fund) scheme, earmarking is recommended if the product is green in nature and reduces energy consumption.

9. It has been recommended by the inter ministerial committee to set up the National Centre for Circular Economy in Communications.

10. It has been recommended by the above committee that ‘Circular Economy on Telecom’ should be included in the AICTE course.

9. Like the 6G vision document, a vision document on Circular Economy in Telecom will be prepared.

Technologies to achieve CE in Telecom

AI in telecom

AI can be utilised for predictive maintenance, energy efficiency and Network performance improvement. AI driven insights can reduce resource wastage and enhance sustainability.

Blockchain technology

This technology can be integrated to enhance transparency and traceability.

Telecom Industry best practices to achieve CE

1. In India since 2006, mobile operators are sharing towers through the Mobile Operator Shared Tower (MOST) initiative. Presently the average BTS density per tower is 3.09. Several innovative approaches have been used to reduce the material consumption of towers offering cost saving to TSPs ( Telecom Service Providers) and reduction in their carbon footprint

2. Passive Infra (battery sets, Diesel Generator, Power Plant and ducts) sharing and active infra (core equipment, backetc.haul etc.) sharing among the TSPs is encouraged by DOT.

3. DOT is allowing e- SIM (embedded SIM) in cellular networks which is an eco friendly measure. Mobile users need not buy a new SIM while changing the Service Provider or while taking a new connection.

4. 6G technology, on which work is going on, will have better end to end system energy efficiency compared to 5G, in tune with the objectives of green telecom.

5. Vodafone UK and Telstra collect old mobile phones for recycling enabling the recovery of valuable materials. Vodafone UK has a ‘Pay as you Go Trade in’ program in which the customers trade their old devices to get credit towards new purchases. They are using sustainable packaging design for SIM card by reducing plastic and introducing eco friendly materials

Way forward

Telecom is a sunrise industry. Importance of the circular economy in telecom should be realised by equipment manufacturers, service providers, customers and other stakeholders. Design of a product is very important in a circular Economy as 80 per cent of circularity is decided by the design. Design should be modular and should facilitate repair, reuse and recycle. Hope Indian telecom will become ‘Vishwa Guru’ in the Circular Economy.

(The author is a former Advisor, Department of Telecommunications (DoT), Government of India)