It's the 21st century. Why are we still suffering from bad mobile network?

Southeast Asia accounts for around 29 percent of bad- and off-grid telecom sites globally.

Dec. 1, 2021

It's the 21st century. Why are we still suffering from bad mobile network?

It's 2021 and yet there are times when you head over to any rural area in Southeast Asia, you're bound to suffer from low or zero mobile network.

According to a report by the International Finance Corporation (IFC), carried out in partnership with a team of consultants from Roland Berger, the Philippines, Indonesia, and Myanmar are among countries in the region with a higher proportion of bad-grid and off-grid areas.

The report, titled "Investing in Sustainable Access to Communications: The Role of Telecom Energy Services Companies" states that Southeast Asia alone accounts for around 29 percent of bad-and-off-grid telecom sites globally.

Here's why you get bad mobile network at times.

Admit it, bad mobile networks are a pain in the ass. IMAGE: NZZ

Alright, pay attention because this bit here explains exactly why we're receiving bad mobile network.

Now, in urban and developed areas, telecom towers are typically connected to electricity grids in order to be powered to allow you to receive and make that important phone call.

However, there are locations in Indonesia, the Philippines, Myanmar (and based on personal experience, Malaysia) where the mobile network can suffer an outage.

"In Myanmar, power availability is a major challenge. In the Philippines and Indonesia, the expansion of telecom towers into remote and rural areas will drive the number of bad and off-grid sites," Roland Berger's Southeast Asia managing partner, Damien Dujacquier said.

According to the report, bad-grid and off-grid areas are locations where telecom towers are not connected to electricity grids. These areas experience an average of more than eight hours of electricity outage per day.

Oh, by the way, not only are these grids a pain in the butt, they're also bad for the planet. The reason? These telecom towers can function because of the electricity grids. These grids are powered by diesel generators.

In short, in order to make that phone call, you're essentially harming the planet.

But there's a solution: Solar power.

All hail solar panels! IMAGE: New Straits Times.

As telecom operators expand into more rural and remote areas across Southeast Asia, new telecom towers are being built that cannot tap into the electricity grid for reliable power.

With the cost of solar power declining rapidly and with telecom operators increasingly embracing sustainability, diesel generators are being replaced by solar panels as a primary source of electricity for such telecom towers.

And there's actually good news, according to the report: Southeast Asia is among the frontrunners globally in adopting renewable solutions at telecom sites. Some 23,000 telecom sites in the region have adopted renewables, out of 64,000 globally. Pretty impressive!

With innovation on the rise, the report revealed that Telecom Energy Services Companies (TESCOs) are emerging. These guys own and optimize the power solutions for the telecom tower owner, through a long-term contractual agreement.

Instead of the telecom tower owner having to invest and operate the power assets, TESCOs have more expertise and incentives to bring the best power solution and minimize the total cost of ownership of the power assets.

"Telecom operators and tower companies are capturing the opportunity of solar power, especially in countries in Southeast Asia, where connecting to the grid is difficult. They are increasingly relying on TESCOs to do that for them" said Roland Berger's South East Asia Principal, Dieter Billen, who contributed to the IFC report.

The role of renewable energy in telecommunications.

The IFC report projects that renewable energy penetration will rise from 10 percent today to 27 percent by 2030, globally.

There are still barriers that need to be dismantled, such as subsidies for diesel fuel, high import duties on renewable energy equipment in some countries, and resistance to adopting new technologies.

"Some industry players are still hindered by high upfront costs to install solar panels. However, the total cost of ownership of solar-powered telecom towers is lower than that of diesel-based power generation. Over a 10-year period, savings of 50 percent can be achieved," said Billen.

In short, by going down the solar energy route, not only would humans be able save the planet, they'll also be able to make more money. Not bad, not bad.