Impact of Energy Saving Companies on OPEX Reduction of Mobile Network Operators in Pakistan

Abstract: Energy Saving Companies (ESCOs) are considered as one of the key factors which helps in reduction of Operational Expenses (OPEX) by reducing the consumption of capital power. In this study, through a Questionnaire, the OPEX reduction potential is compared between ESCOs who and their counterparts who charge for their service. SPSS 21 is used to analyse the data. The result shows that ESCOs have offered substantial savings on capital expenditure when compared with their counterparts. This study analyses the effect of Energy Saving Companies (ESCOs) on the Operational Expenses (OPEX) reduction of Mobile Network operators (MNOs) in Pakistan Telecom Sector. The analysis suggests that mobile operator may reduce its OPEX including Fixed Costs and Variable Cost due to reduction in the unit cost for network upgrade works, planning for end-to-end solution for better future network availability and maintenance period should be reduced. The following study has been performed considering a model which distributes energy consumption by fixed cost method in the form of installed capacity. This study explored the potential of ESCOs to reduce OPEX in Pakistan Telecom sector by discussing and analysing the main issues relating to Energy Saving Solutions (ESSs) that are already established in Pakistan. In this context, it focuses on understanding the energy saving potential of mobile operators through reducing operational expenses through high-impact energy management solutions based on smart metering and renewable energy sources.