Washington DC / Paris

Jason MarcheckJune 2, 2009

Sustainability in Telecom – Green Marketing Trends

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Corporate social responsibility

Internal Efforts Partnerships Research Support

Defining the Issue:How Companies Demonstrate Their Commitment to Green

Product offerings Product design Power metrics TCO benefits

Service Offerings Network optimization Product life-cycle mgmt

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Insights lay at the extremes…

Go Green or die choking on carbon amid rising ocean tides

Print media is dead Dogs are better than cats

Defining Green’s Relevance:Moving Beyond Sunshine and Happy Chirping Birds

The truth lies in the middle Green’s a trend with “legs” Trends sell Trend = market opportunity Market opportunity = Money Money never goes out of style

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Since it Matters… Who’s Doing What?Survey of Some Others

ITU-T standard metric reporting Agreement that agreement is needed Beyond that – issue needs definition

IxiaGreen Standardizes(?) energy consumption per Watt

Verizon’s TEEER Internal benchmarking Being used by others

BT’s Green Consulting Similar initiatives from Alcatel-Lucent and others

And of course… the ubiquitous, “ICT can save the world…”

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What We Think Resonates

POWER IS STILL KING!

TCO ADVANTAGES OF GREEN

LEVERAGING EXISTING MODELS

QUANTIFYING INTERNAL INITIATIVES

ATTEMPTS AT STANDARDIZATION

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Power Is Still King

Product approach Operators shop for solutions, but they evaluate products Can target specific network pain points Claims easier to justify/validate

Service approach Helps enhance value of a portfolio offering Makes connection to service revenue more tangible Demonstrates comprehensive commitment by vendor

Key message: Slice it, dice it, show how comprehensively you are address it!

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TCO Advantage of Being Green

Demonstrates command of Green issue Power draw is paramount, but it still about more than that Gives vendor opportunity to address multiple angles Weapon to combat price competition

Includes life-cycle management Shows how vendor manages its supply chain Marketing opportunity for professional services Enhances idea of supplier as comprehensive partner

Key message: Fertile ground for differentiation

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Leveraging Existing Models

IxiaGreen – type products Carries credibility that test and measurement brings to the table Adaptable to multiple classes of equipment Don’t have to go it alone

Verizon TEEER Credibility – big network, lots of equipment Public domain = well known Can be leveraged by non-VZ suppliers

Make up your own!

Key message: Great Way to Demonstrate Leadership

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Quantifying Internal Initiatives

How much travel did you save Translate to carbon footprint Translate to bottom line savings Demonstrates the Green ICT argument in action

What are your carbon reduction benchmarks Shows deeper level of commitment; not just “lip service” Opportunity to highlight innovation; steps that are being taken Stakeholders are impressed by progress

Key message: Same as product roadmap; set goals and then demonstrate progress toward that end

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Attempts at Standardization

Participation with ITU-T initiative(s) Influence in the process Head’s up on the process

– Plan to the benchmarks– No surprises

Work with Ixia’s of the world Demonstrates confidence in product performance Good PR opportunity Applies pressure to competitors

Key message: Same rationale as with products… Thought Leadership!

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What We Think Falls Shortaka “Greenwashing”

The “ICT is the savior” routine is becoming overused We’ve heard nebulous arguments about travel reductions,

teleconferences, etc.– If you’re going to use it, make sure that there’s meat on the bone!

Overhyping the altruism Sunshine and singing birds are great… but be honest, its all about

the bottom line!– Make sure Green marketing is framed in terms of good business sense

Anti-Greenwashing Fine line between healthy skepticism and condescension

– Recognize the desire to be Green is real; address it accordingly

Key message: Be Green – but be clear on the how and why!

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What Might WorkWe haven’t seen much of, but would like to…

Joint Marketing – Vendor and Operator Both eager to seem Green Helps end user make connection Good opportunity for service delivery approach

Joint Marketing – Supplier and Supply Chain Details on TCO – proverbial “meat on the bone”

Standards / 3rd Party Test Buy-in ITU’s actions seem to involve rather closed group Ixia seems to be shouting into the wind Both ideas need refining, but are probably worth the effort

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Conclusions

Hype Aside, Green is Real and Worthwhile Obviously, it’s a topic to address comprehensively However, while altruism is noble, its value has limits

– Green needs to be a path towards Greenbacks!! (or Euros or Kroner…)

As Hype Abates, Specifics Will Be Key Internal – How it helps your bottom line

– Will resonate with investors/employees External – How it helps operators bottom line

– Duh!

Operators Will Want to Move beyond OpEx How Green can help create demand

– Helping end-users feel eco-conscious– Where altruism meets the bottom line!

Washington DC / Paris

Jason brings more than ten years of experience to Current Analysis clients as an economic, technology and marketing analyst in the telecommunications industry. As a senior analyst covering the Optical Infrastructure market, Jason focuses on tracking, analyzing and reporting on developments that primarily impact the metro, and long-haul optical infrastructure market. His areas of coverage include the companies, technologies and strategies related to the market for WDM-based access, switching, optical add/drop and PON products.

In addition to his optical infrastructure coverage, Jason also writes on environmental sustainability issues pertaining to the telecommunications industry. He coordinates Current Analysis’ “Green” market coverage, and engages with the industry’s leading equipment vendors regarding their environmental sustainability initiatives.

Prior to joining Current Analysis, Jason worked at the U.S. Securities and Exchange Commission in the Department of Economic Analysis. In addition, Jason served as a Senior Analyst for Pioneer Consulting where he was primarily responsible for covering core optical switching and DWDM-based long-haul transport networks, as well as developments in lambda switching technologies. Previous to that he was an Analyst with The Strategis Group where he covered optical networking infrastructure and broadband services.

Throughout his career, Jason has been quoted in leading newspapers, and top telecommunications trade publications. He has often served as a featured speaker and panelist at optical networking trade shows, and has authored numerous columns and articles related to the topics that he covers. Jason holds an MBA from Johns Hopkins University and a BA in Political Science from the University of Pittsburgh.

Jason Marcheck - Bio

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