Broadband:Broadband: It’s the Green Network

OECD Workshop on ICTs and Environmental Challenges May 22-23, 2008Copenhagen Denmark

It s the Green NetworkCopenhagen, Denmark

Chris LloydVerizon CommunicationsWashington DCWashington, DC

1Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

PROPRIETARY STATEMENT

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2Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

The Green Power of IT“For every extra kilowatt-hour of electricity consumed by ICT, the U.S. economy’s energy savings has increased 10

times and we have yet to optimize the full range of opportunities for additional gains in energy and economic

productivity.”*

Global CO2 Emissions

productivity.

But what if ICT could

98%

could dramatically

reduce part of this?

ICT Contribution  (2%)

this?

All Other Industries & Individual Contribution (98%)

3Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

* Laitner, John A. “Skip” and Karen Ehrhardt-Martinez, “Information Technologies: the Power of Productivity.” American Council for an Energy-Efficient Economy (February 2008).

V i ’ E i t l I tVerizon’s Environmental Impact• Occupy more than 32,000

f iliti ld idfacilities worldwide• Operate more than 59,000 vehicles• Consumed 9.4 billion kilowatt hours

of electricity and 60 million gallons of gasoline and diesel in 2007

• Installing almost 70,000 miles gof fiber in 16 states

• Primary environmental impacts:– Energy usage– Management of spent materials

4Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

V i ’ E i t l I tVerizon’s Environmental ImpactCO2 Emissions Profile (metric tons)CO2 Emissions Profile (metric tons)

4 000 000

5,000,000

2,000,000

3,000,000

4,000,000

VZT

VZW

0

1,000,000

2,000,000

2005 2006 2007

VZB

2005 2006 2007

• 2007 equivalent: annual emissions of 1 4M passenger vehicles• 2007 equivalent: annual emissions of 1.4M passenger vehicles or consumption of 17.7 M barrels of oil

• 93% of emissions come from electricity consumption; 7% from fuel consumption

5Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

fuel consumption

V i ’ E i t l I tVerizon’s Environmental Impact

O f US i f bl

Carbon Intensity in Metric TonsCarbon Intensity in Metric Tons

Our performance versus US average is favorable

1,000

500US Economy

0VZ

US Economy 653 625 613

2005 2006 2007

• Metric tons of CO2 required to generate a million dollars of revenue

VZ 81.9 81.3 80.7

• Metric tons of CO2 required to generate a million dollars of revenue • 2007 US Economy average is estimated• Verizon intensity is almost 8 times better than the US economy average

6Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

E C tiEnergy ConservationOur energy conservation, waste

i d li ff dprevention and recycling efforts prevented 332,000 metric tons of CO2 in 2007, equivalent to 61,000 passenger cars not d i i 1driven in 1 year

Major Initiatives:• 2007 Network Equipment power down• 2007 Network Equipment power down • 2007 Real Estate

operational improvements2007 I t ll ti f “thi li t t ”• 2007 Installation of “thin-client computers” in Verizon Wireless call centers

• 2007 Verizon Wireless remote computer management

• 2007 Data center improvements• 2006 Micro turbines

7Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Fib COffice Parks

Small Businesses

Fiber v. Copper

Residential

ONTONT

ResidentialCopper

DistributionONTONT

ONTONT

SplitterHub

• Fiber FiOS Power is 38% of Copper DSL

CopperFeeder

Hub -Home Power Consumption- Fiber FiOS and Copper DSL powerrequirements are equivalent

C t l Offi P C ti

DSLAM CentralOffice

-Central Office Power Consumption- DSL Copper: 32 KW hours/year/line- Fiber FiOS: 12 KW hours/year/line

8Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Office

OLT

Eff t V hi l UOffice Parks

Small Businesses

Effect on Vehicle Use

Residential

ONTONT

ResidentialCopper

DistributionONTONT

ONTONT

SplitterHub

•FiOS maintenance cost is 39% less than copper

CopperFeeder

Hub •CO is 38% less•OSP feeder and distribution cable is 91% less•OSP drops are 55% more, but dropping rapidly

T l t i t f t k ll

DSLAM CentralOffice

•Translates into fewer truck rolls

9Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Office

OLT

R bl ERenewable Energy • 2007 Solar energy trial

V i T l i t ll d 140 l– Verizon Telecom installed 140 solar panels at the Carrollwood central office in Tampa, FL

– Project is expected to generateProject is expected to generate an average of 19 kilowatts to 21 kilowatts of daily energy production, reducing the building’s normal power consumption by 5.5 hours per day

• 2007 Verizon Business Fuel Cell ProjectsCell Projects

– Continues our research with hydrogen fuel cells

– Used in network facilities as backupUsed in network facilities as backup power source

– Fuel cells reduce the need for batteries and diesel backup generators

10Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

R bl ERenewable Energy• 2005 Garden City, NY Fuel

Cell Project– Installed 7 fuel cells as primary

power at switching/trainingpower at switching/training facility

– Largest installation of this technology in the countrytechnology in the country

– Provides energy needs of 1,000 single-family households

– Annual emission reduction =– Annual emission reduction = 8,000 metric tons

– Equivalent to 1,700 passenger cars not driven in 1 yearcars not driven in 1 year

11Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Fl t E i t l I iti tiFleet Environmental Initiatives • Worked with vehicle retrofitter

t d l 13 h b idto develop 13 hybrid vans:– Anticipate 40-50% fuel economy

improvement and 70-90% emission reductionemission reduction

– Seeking manufacturing partner to make these “production” vehicles

• Deployed 100 hybrid cars, p y y ,another 100 to be purchased this year:

– Will reduce greenhouse-gas emissions by 526 metric tons

– Conserve nearly 60,000 gallons of fuel annually

T i li bi di l d• Trialing bio-diesel and environmentally friendly lubricants for our construction vehicles

12Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

vehicles

M i R Eff ti lManaging Resources Effectively • 2007 Recycling:

– 19 000 tons of telecommunications equipment19,000 tons of telecommunications equipment– 19,000 tons of paper and cardboard– 352 tons of telecom equipment batteries– 36 tons of cell phone batteries collected

by Verizon Wireless storesy– Over 1M phones through Verizon

Wireless HopeLine® Program• 2007 Reduction Paper usage:

– eTree:eTree:• Verizon a founding sponsor• Encourages shareholders to sign up

for electronic deliver of all communications material

One Customer’s Bill for O M thcommunications material

• Verizon Business plants tree for each customer signing up for paperless billing

• Planted over 1700 trees

One Month

Planted over 1700 trees• 2007 Paperless billing:

– Processed more that 100 million on line payments Reduced paper use by over 400 tons

13Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

– Reduced paper use by over 400 tons and saved approx. 6,000 trees Hall of Fame Inductee

B t th i hBut there is so much more…

“…you can’t make a product greener –h th it’ f i t t ffiwhether it’s a car, a refrigerator or a traffic system – without making it smarter.”

~ Thomas Friedman

Friedman, Thomas L. “The Green Road Less Traveled. “Friedman, Thomas L. “The Green Road Less Traveled. “The New York The New York TimesTimes, July 15, July 15thth, 2007, 2007

14Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

The Green Power of IT“For every extra kilowatt-hour of electricity consumed by ICT, the U.S. economy’s energy savings has increased 10

times and we have yet to optimize the full range of opportunities for additional gains in energy and economic

productivity.”*

Global CO2 Emissions

productivity.

But what if ICT could

98%

could dramatically

reduce part of this?

ICT Contribution  (2%)

this?

All Other Industries & Individual Contribution (98%)

15Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

* Laitner, John A. “Skip” and Karen Ehrhardt-Martinez, “Information Technologies: the Power of Productivity.” American Council for an Energy-Efficient Economy (February 2008).

Broadband: Green Technology

In total, use of broadband networks canIn total, use of broadband networks canIn total, use of broadband networks can In total, use of broadband networks can decrease our dependence on oil up to decrease our dependence on oil up to

11% over the next 10 years11% over the next 10 years11% over the next 10 years11% over the next 10 years- American Consumer Institute Study, 2007

Telecommuting 600M TonsgTeleconferencing 199.8M TonsE-Conservation 67.2M TonsE-Commerce 206.3M Tons E Commerce 206.3M Tons TOTAL 1B TONS

American Consumer Institute Study 2007

16Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

American Consumer Institute Study, 2007

Broadband & Smart Houses

N t kNetwork

Traveling Customer

The Power Authority in Long Island is experimentingIsland is experimenting

with wireless – connected thermostats, which canthermostats, which can save 10- 15% off energy

costs.

17Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

BHRONT withMoCA

- WWF study, 2002

Smart Home

• “Smart home:” a wired/wireless home network of consumer electronics, mobile, PC and home automation devices that cooperate seamlessly

Wired/wireless home LANLocal network storage

Converged wireline/wireless voice and data servicesLocal network storage

PC-to-TV media bridgeNetworked console game system

Enhanced broadband services (low latency, QOS, bandwidth on demand)Remote network storage

Value-added capabilities

Remotely accessible home security video systemHome automation system with remote control

Remote network storageFirewall and virus protectionOnline video rentalOnline music subscription

and services

Basic broadband connectivity, PC(s), video service, voiceservice (wireline and/or wireless) and home security system

p

The Foundation

Smart home solutions build on foundation capabilities

18Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Smart Home – Eco-System

Broadband & PC LAN

Data & Voice Multimedia Entertainment

Gaming User Generated Networking

PC LAN

Fixed to Mobile

Voice overLAN Streamed

Video

Gaming Content

On-demand Content Mobile Video

Home Management Value Added Services

Safety &

Home Controls

Energy Management

Installation &

Converged Communications

Small office / Home office

Safety &Security Healthcare

Delivery

Installation &Upgrades Break / Fix

Source: Parks Associates

19Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

The “Smart Home” requires a holistic approach

Broadband & Smart Transportation

By mapping out routes UPS saves 28.5 million miles 3 fannually which results in roughly 3 million gallons of gas

and CO2 emissions reductions of 31,000 metric tons.The New York Times (December 9 2007)- The New York Times (December 9, 2007)

20Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

A ti A dAction Agenda• What we know: Broadband can play

a greater role in facilitating energy efficiency

• We need public policies to speed:e eed pub c po c es to speed– More ubiquitous deployment– Investment in innovative applications which

promote energy efficient behaviorsp gy– Business leadership through legislation like

cap-and-trade• What opportunities are there for usWhat opportunities are there for us

to work together?

21Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Appendix:Appendix:

22Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Sources

• Broadband Services: Economic and Environmental Benefits, 2007, American Consumer Institute

• Contribution of ICT to Climate Change Mitigation, Report to World Economic Forum, 2008 (Dennis Pamlin at WWF)

• Energy and Greenhouse Gas Emissions Impact of Telecommuting and e Commerce• Energy and Greenhouse Gas Emissions Impact of Telecommuting and e-Commerce, 2007, Consumer Electronics Association

• GeSI Progress Report, 2007, Global e-Sustainability Initiative – a partnership of ICT i t d b th U N E i t l Pcompanies, supported by the U.N. Environmental Programme

• Information and Communication Technologies: The Power of Productivity, 2008,American Council for an Energy-Efficient Economy (Skip Laitner)

• Left-Hand-Turn Elimination, The New York Times (December 9, 2007).

• Sustainability at the Speed of Light, 2002, Dennis Pamlin, Global Policy Advisor for World Wildlife FundWorld Wildlife Fund

• The Internet Economy and Global Warming, 1999, Joe Romm, senior fellow at Center for American Progress

23Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

• Towards a High-Bandwidth, Low-Carbon Future, 2007, Telstra (Australian telco).