Rudi Anthony, Justin Bean, Jenn Coyle, Giles Hayward, & Kelly James

Industry White Paper, May 11, 2011

Sustainability Assessment of the

Mobile Services Industry

Rudi Anthony, Justin Bean, Jenn Coyle, Giles Hayward, & Kelly James

Industry White Paper, May 11 2011

Table of Contents

Executive Summary .......................................................................................................... 3

Mobile Services Industry Background ............................................................................ 3

Industry Trends ................................................................................................................. 6

Rationale for Sustainability ............................................................................................ 10

The Natural Step Framework .......................................................................................... 11

Vision for a Better Mobile Future ................................................................................... 12

Major Impacts Related to the Industry........................................................................... 13

Mobile Industry Value Chain ...................................................................................................... 13

Major Impacts in Industry ........................................................................................................... 13

Economic Impacts ...............................................................................................................................14

Environmental Impacts ........................................................................................................................15

Social Impacts .....................................................................................................................................16

Metrics .............................................................................................................................. 17

Key Players and Best Practices ..................................................................................... 19

Vodafone ................................................................................................................................... 19

China Mobile .............................................................................................................................. 20

AT&T ......................................................................................................................................... 21

Other Mobile Services Companies or Organizations .................................................................. 22

Sustainability Reports and Results ............................................................................... 23

Conclusion ....................................................................................................................... 26

References ....................................................................................................................... 27

08 Fall

Executive Summary

The mobile services industry is one of the fastest growing industries in the world with over five

billion users. The industry provides telecommunication and information services, including voice

calls, short message service (SMS), internet access, picture and video messaging, and other data

services, to 90 percent of the world‟s population. Due to the ubiquity of mobile phones, mobile

service providers can play a key role in helping to shape a more sustainable society. Not only do

mobile services providers bring access to telecommunications and information and that drives

sustainable development in emerging markets, but these companies also develop products and

services that can enable a low-carbon society. The aim of this paper is to assess the mobile

industry‟s current state and develop a business rationale and framework for sustainability that fits

the unique needs of the mobile services industry. In addition, recommendations are given that can

further the mobile industry‟s sustainability agenda.

Mobile Services Industry Background

The mobile services industry is defined as those companies, which together enable the provision of

telecommunication, information, and entertainment services including voice, internet, SMS, text,

and other data services. It is comprised of thousands of companies offering mobile services

worldwide; some of the largest include Vodafone, China Mobile, and AT&T. As is shown in Figure

1, Vodafone is narrowly the largest mobile operator by revenue. However, China Mobile is the

largest in terms of subscribers and coverage, with over 600 million subscribers.

Figure 1. Mobile Services Industry - Annual Revenues (Ohanen, 2011)

Revenue collected by mobile service providers totaled $675 billion in 2009, and is expected to top

$870 billion by 2014 (Teral, 2011). As seen in Figure 2, voice messaging makes up the largest part

of the mobile service industry. SMS also contributes greatly to the revenue of the mobile services

industry with five trillion messages sent in 2009. Despite the growing popularity of mobile email,

Instant Messaging (IM) and Multimedia Messaging Service (MMS), SMS is still predicted to exceed

10 trillion messages in 2013. However, the majority of growth over the next three years will come

from mobile broadband services, which jumped by 36 percent in 2009 and are expected to double

by 2014 (Teral, 2011).

Figure 2. Worldwide Mobile Broadband Service Revenue Projections

Mobile services providers operate in four areas: 1) mobile networks, 2) mobile handsets and other

hardware, 3) retail presence, and 4) other data services, including mobile money and mobile health

(m-health) services.

Access to mobile networks is now available to 90 percent of the world‟s population and 80 percent

of the rural population. According to the Information & Communications Technologies Group (ICT)

at the World Bank, there are an estimated 5.3 billion mobile cellular subscribers worldwide,

including 940 million subscriptions to 3G services. As mobile phones become more affordable,

emerging markets are acting as the engines for growth within the industry (Figure 3). Since 2002,

mobile penetration in developing countries has grown 321 percent compared to 46 percent in

developed countries (Vital Wave Consulting, 2008). Moreover, growth rates in new subscribers are

highest in Asian and African regions (Figure 4).

Figure 3. Mobile Penetration Growth in Emerging & Developed Countries (Vital Wave Consulting,

2008)

Figure 4. Mobile Subscriptions per 100 Inhabitants (ICT, 2010)

Industry Trends

The primary drivers of the mobile industry up to now have been dominated by growth in revenues

and subscribers. Keeping up with this pace of growth places great pressure on the planet‟s

ecosystem and natural resources, but also opens opportunities for positive impact. Beyond pure

growth, there are several trends currently shaping the way businesses in the mobile services

industry operate.

Changing Revenue Models

Increased competition among the thousands of mobile service providers contributes to price wars,

which are leading to reduced revenue and profit margins. In response, the makeup of mobile

service providers‟ revenue is shifting to include more mobile application and enhanced service

revenue, such as mobile application (app) purchases, which are increasing at an average of 160

percent per year since 2009, (“Mobile Media Intelligence”, n.d.). In-app purchases, mobile

payments, mobile banking and advertising are

also growing sources of revenue for mobile

service providers. According to Sid Ugrunkar,

founder of bSmart, a provider of Wireless

Enterprise software solutions, mobile

advertising is emerging as the “hot topic” in

India‟s mobile marketplace and presents

ample opportunities for brands to capture the

attention of the growing consumer market.

With bSmart, Sid has observed huge shift in

the requests from their clients to embed mobile advertising capabilities in their software

applications in order to capture the huge revenue opportunities from this nascent market (S.

Figure 5: Changes in Mobile App Revenue (eMarketer, 2011)

Ugrunkar, personal communication, May 2011). Moreover, a greater percentage of revenue is

coming from emerging markets due to the higher subscription growth rates (ITU, 2010).

Figure 6. Global App Revenues and Growth. (cnet News, 2011)

Tightening Environmental Laws

In the European Union, Restriction of Hazardous Substances (RoHS) legislation placed restrictions

on the amount of hazardous materials contained in electronic devices including lead, mercury,

cadmium, and chromium. While the Waste Electrical and Electronic Equipment (WEEE) electronics

take-back law has created incentives for international companies to reduce toxins in manufacturing

and to implement cell phone take-back programs (“RoHS Compliance in the EU”, n.d.). In the U.S.,

states are adopting take-back laws and three states have already prohibited cell phones from

being thrown away: California, Maine and New York (“State Legislation”, n.d.). Proactively

addressing these compliance trends will help companies remain competitive when regulations

tighten in the future.

Scarcity of Natural Resources

Mobile phones require a large variety of natural resource inputs, including rare earth metals. These

resources are becoming scarcer due to growing demand across the entire electronic industry as

well as the impacts of mining these materials (“Environmental Impacts of Cell Phones”, 2008).

Ensuring cost-effective access to these material inputs is an important challenge and is motivating

companies to initiate handset recycling and reuse programs.

Closing of the Digital Divide

Research has shown that increased connectivity helps drive social and economic development

particularly in the developing world (Vodafone Group Foundation, 2008). Mobile penetration has

increased by 320 percent in emerging markets, and now the mobile phone has surpassed the

personal computer as the primary point of contact to the Internet (Vital Wave Consulting, 2008).

Mobile technology is opening up new markets and bringing greater access to information and

capital to more segments of society.

Mobile Applications with Social Benefit

Mobile technology is being applied to improve users‟ lives in a variety of ways including mobile

banking, economic development, delivery of health services, citizen empowerment, and greater

access to media and education. Non-governmental organizations and social entrepreneurs are

increasingly leveraging mobile technology in their work to enrich and serve communities with

mobile applications for advocacy work, disaster and humanitarian relief, and environmental

tracking. Sid Ugrunkar, founder of bSmart, identified increasing expansion of peripheral health

devices, especially in emerging markets like India. As a result, over the last few years, the number

of clients requesting bSmart‟s services to develop healthcare applications has greatly increased.

One of the company‟s newer clients is a leading pharmaceutical company that is launching a drug

for Asthma patients in India and is interested in creating a dosage reminder application. In order to

reach the largest segment of mobile users, bSmart is developing an application for sending SMS

alerts to patients in India who are using the drug. He predicts that the penetration of tablets such

as the iPad will emerge as catalysts for innovative mobile health applications to grow in usage over

the next few years (S. Ugrunkur, personal communication, May, 2011).

Rationale for Sustainability

Sustainability is a strategic imperative for the mobile services industry because rapid growth in

mobile connectivity not only presents new opportunities for the industry, but exposes it to greater

environmental and social liabilities as well. These liabilities can even include legal accountability

(Martin, 2010). Expansion in the availability of information and communication makes the actions of

the industry more visible and subject to criticism for any practices that are deemed unsustainable

by stakeholders. However, with a more connected world, the mobile services industry stands to

gain access to customers with greater education, health, and financial resources. Implementing

sustainability as a business strategy can provide more sustainable revenue, assist in the mitigation

of social, environmental, and economic risks, and provide economic growth into the future (Porter

& Kramer, 2011). The creation of new markets through sustainable mobile services has the

potential to create massive new opportunities for local and global business. These new markets

can be created by taking a shared value approach, in which the mobile services provider assesses

the unmet needs of the community (especially in regards to communications, information, and

other needs directly related to mobile services), and addresses those needs in ways that leverage

the unique expertise and value offerings of mobile service providers (Porter & Kramer, 2011).

If growth continues without consideration of the associated environmental and social liabilities, then

the industry stands to lose the trust of its customers and forgo opportunities to increase revenue by

delivering new services to developing markets. Ignoring the sustainability imperative exacerbates

risks such as price volatility in raw materials, erosion of the middle-class customer base, and loss

of market share as more sustainable technologies and services emerge (European Commission,

2011). Therefore, it is in the best interest of the mobile services industry to integrate sustainability

into its strategic planning in order to reap the benefits of sustainability, and avoid the risks of

ignoring it.

The Natural Step Framework

The Natural Step (TNS) framework helps to bring a vision-oriented approach to tackle the

industry‟s sustainable development opportunities and challenges. Factors that make this

framework unique include its focus on building a plan for sustainability based on four principles and

use of backcasting to evaluate each possible action for its strategic value. TNS is based on

systems thinking; acknowledging that what happens in one part of the system affects each other

part, and provides an overarching process to help inform strategic planning and decision-making.

Anchored in environmental, economic and social considerations, the four TNS principles provide

explicit guidance on how to operate within the natural laws and principles, in order to successfully

navigate the pressures that the ecosystem and society face. The principles state that, in a

sustainable society, “nature is not subject to systematically increase concentrations of substances

extracted from the earth's crust, concentrations of substances produced by society, degradation by

physical means and that people are not subject to conditions that undermine their ability to meet

their basic needs” (The Natural Step, n.d.).

As previously stated, the mobile services industry is experiencing rapid growth and major

transformation in order to meet the demands of the growing population. People around the world

are becoming more dependent on mobile services and requiring more functionality from next

generation devices such as Smartphones and Tablets. The principles outlined in the TNS

framework provide the industry with the tools to examine design and production factors such as

material selection, life cycle design, and waste reduction within which the industry can innovate

and improve its performance. By applying TNS, the mobile services industry can craft a plan to

bridge the gap between where it is today and where it would like to be as a sustainable industry.

Vision for a Better Mobile Future

A recommended vision for the industry is to create a sustainable, closed-loop mobile industry that

enables an interconnected, liberated, global community consisting of healthy, educated people

who have open access to affordable mobile services. This better mobile future consists of a world

where all people are more informed and connected to each other; empowering them to play a

larger part in determining their own destinies and the destinies of their communities.

Specific criteria and recommendations for generating progress towards this vision include:

● Increasing mobile penetration rates in developing countries.

● Increasing smart phone penetration rates.

● Increasing the availability and prevalence of socially beneficial applications such as those

related to mobile banking, education, health, agriculture, and market information.

● Providing mobile phone and service pricing that is accessible in proportion to local income.

● Using market power and political coalitions to ensure that mobile services are not made

unavailable to citizens by oppressive regimes during times of political activity or change.

● Educating customers about the beneficial services that mobile phones can offer in order to

maximize positive impact and subscription to these services.

● Providing open feedback channels for customers to make suggestions for new products

and services, and stimulate product innovation that aligns with what customers demand.

A detailed metrics section, included towards the end of this paper, provides recommendations for

specific mobile industry goals, tracking, and evaluation.

Major Impacts Related to the Industry

Mobile Industry Value Chain

The mobile services industry operates as a hub that delivers mobile services to consumers using

the hardware and software. The inputs to the industry are in the form of energy and materials used

in the production of mobile devices as well as transmission infrastructure. The outputs from the

delivery of this service include positive impacts on the economy, health, and society as well as

solid waste from the used and disposed hardware devices.

Figure 7. Mobile Industry Value Chain Inputs and Outputs

Major Impacts of the Industry

The major impacts related to the mobile services industry across this value chain can be evaluated

from a triple bottom line perspective and compared against the major trends identified above. This

provides a groundwork for developing performance metrics based on environmental, economic,

and societal considerations. Beyond the standard issues and opportunities related to e-waste that

are most often explored in the mobile industry, there are also numerous benefits to productivity,

connectivity, and culture that have resulted from the provision of mobile services.

Economic Impacts

By bridging the digital divide, mobile technologies make it possible to deliver greater access to

information and capital to millions of people in new markets, and in the process, generate new

income opportunities and increase economic development. Mobile service providers can play a

vital role in driving socioeconomic development in emerging markets by providing access to new

financial services, such as mobile money transfer, as well as other forms of business services. This

is why Thomas Friedman calls mobile technology “one of the top flatteners of our world, helping to

bring more equality and opportunity to less fortunate people around the world” (Friedman, 2005).

Figure 8. Mobile Banking Opportunities in Emerging Markets. (Gencer, 2011)

In order to sustain growth, companies need to continue to monitor issues of affordability for mobile

services and access to cellular coverage. Currently, the average price of a handset in emerging

markets is $58 USD, which is still a significant investment for those living on $2 a day. Yet industry

market research indicates that despite the high cost, first-time low-income buyers are willing to

purchase and use mobile phones. Mobile service providers can accelerate mobile phone adoption

if they develop alternative financing mechanisms to help the poor overcome the cost barrier.

According to Menekse Gencer, an industry leader in mobile payment and mobile banking

strategies, this represents an opportunity to gain 1.7 billion new customers in 2012 alone, which

can have an enormous impact on global GDP growth and equity (M. Gencer, personal

communication, January 29, 2011).

Environmental Impacts

The largest environmental impacts of the industry are from handsets. The average lifespan of a

mobile handset is less than twelve months, and in

the U.S. alone, over 140 million handsets end up in

the landfill each year (mobiThinking, 2011). In

addition, the one billion handsets manufactured each

year contribute nearly sixty million metric tons of

CO2, of which 95% is from manufacturing and 5%

from use (Fat Knowledge, 2007). To address these

impacts, mobile service providers can mandate

Design for Environment (DfE) principles in their

handset guidelines—influencing manufacturers to

design handsets, chargers and other phone accessories for disassembly, reuse or recycling rather

than for obsolescence. Companies can also collaborate on developing universal battery chargers

that are applicable across all handsets. Finally, mobile service providers can play a key role in

influencing the industry to adopt a service-and-flow based business model whereby consumers

“lease” phones; enabling complete take-back of phones and therefore a closed-loop life cycle.

Another important factor with regards to the environmental impacts of mobile services is the energy

use associated with network operations. While the most significant CO2 emissions are related to

the manufacture of cell phones, the mobile industry can continue to reduce its emissions by

deploying energy-efficient technology throughout its global mobile networks. Moreover, companies

can increase their usage of renewable energy to power network base stations and towers,

Figure 9. Volume of Mobile Phone E-waste

(EnviroSmart, 2010)

particularly in the developing world where the energy infrastructure is still being developed. There

are also opportunities to work with suppliers to reduce carbon emissions across the supply chain.

One positive environmental impact of improved connectivity and communications is that it reduces

the need for business travel, and helps companies decrease fuel usage. In addition to achieving

carbon reductions, the adoption of mobile services in the workplace has resulted in travel cost

reductions and streamlined communications that enhance the productivity of employees

(mobiThinking, 2011).

Social Impacts

The proliferation of mobile services is also changing the

cultural fabric of how people interact in completely new ways.

However, like most disruptive technologies, there are two

sides to the impact. One of the most visible negative impacts

is the labor abuses at factories, such as what happened at

the Foxconn plant in China, where news of employee

suicides have prompted the industry to step up its supply

chain oversight (Johnson, 2011). Mobile service providers

can wield a great deal of pressure on the supply chain by

implementing supply chain policies that ensure suppliers are complying with ethical labor

standards and human rights clauses, and protecting the health and safety of their workers.

Companies can also institute a responsible sourcing policy that prevents the procurement of raw

materials from conflict regions.

Another negative effect of mobile use is stimulus overload, which can lead to impaired decision

making, derailed brain processing, attention span distractions and addictive behaviors (Begley &

Figure 10. Texting and Driving Statistics (Virginia Tech Transportation Institute, 2009)

Sharon, 2009). To underscore the social impact this can create, in the US alone, there were 5,870

traffic deaths involving cell phone distractions in 2008, and over 16,000 people died in cell phone

related automobile accidents between 2001 and 2008 (American Journal of Public Health, 2010).

However, there are also many positive impacts that result from increased mobility. Mobile service

providers are uniquely positioned to offer the 90 percent of the population they reach with vital

social services in health and education, and expand access to financial services by enabling

secure forms of mobile payments. In terms of health solutions, mobile technology offers many

opportunities to improve the delivery and effectiveness of health services in rural areas—from text

messages for patient reminders and reporting of medical supplies and clinical trial data.

The ability to connect, inform, and mobilize is also creating a surge in self-organized and managed

citizen activism. As recently displayed in the Middle East‟s democratic uprisings, mobile technology

is helping to empower citizens around the world. Mobile services providers need to recognize the

impact their products have on the larger society and take responsibility for keeping networks open

in order to help drive a more transparent and connected world.

Metrics

To achieve the vision of a more sustainable mobile industry, mobile service providers should

monitor their progress on indicators that span economic, environmental, and social criteria. The

metrics identified here include: penetration, sustainable development, access to handsets and

broadband, CO2 emissions, handset reuse, DfE, supply chain oversight, and access to education,

health, and financial services. Details for the goals and measurement criteria for these metrics are

outlined in Figures 11 and 12.

Figure 11. Proposed Goals for the Mobile Industry

Figure 12. Progress on Goals to Date

Key Players and Best Practices

Many of the largest mobile services providers have made steps towards addressing sustainability,

but even the leader still have room to grow in this area. Vodafone, the largest provider in Europe,

Africa and the Middle East, is leading the industry with its integrated sustainability strategy; while

China Mobile has committed to a range of both environmental and social initiatives. AT&T, the

largest provider in the United States, has just begun to implement sustainability practices within the

last few years, focused primarily around handset take-back and lifecycle management programs,

However, it still ranks lower than other carriers on overall sustainability. Key practices from each of

these players are described below.

Vodafone

Vodafone is recognized as a sustainability leader in the industry. It ranked #11 out of all global

companies in the 2010 Newsweek Global Green Rankings. What makes Vodafone stand out from

the competition is its comprehensive sustainability strategy, which is aimed at leveraging mobile

technology to shape a more sustainable society particularly in the developing world. Aside from

making progress on reducing its carbon emissions, Vodafone sees opportunity in leveraging

sustainability challenges as a key stimulus for innovation within its business. With its broad reach in

emerging economies in Africa, Asia and the Middle East, the company is developing services that

“enable more efficient and effective healthcare; access to basic financial services to mobile

payment solutions, and machine-to-machine applications that can bring substantial carbon and

energy cost savings” (Vodafone Sustainability Report, 2010).

One of the more unique aspects of Vodafone‟s Sustainability Strategy is the company‟s use of the

UN Millennium Development Goals (MDGs) as a framework for focusing their efforts to bridge the

digital divide in emerging markets. Vodafone believes that improved access to communication can

be a springboard for alleviating poverty and enabling sustainable development. The company has

started to align the development of new products and social programs in emerging markets against

these goals.

Figure 13. Vodaphone's Contribution to the U.N. Millennium Development Goals (Vodaphone, 2010)

China Mobile

China Mobile is the first mainland Chinese Company to be listed on the Dow Jones Sustainability

Index. The company is committed to triple-bottom-line principles as well as active stakeholder

engagement, as the company believes that „Responsibility Makes Perfection‟ (China Mobile, 2010).

China Mobile serves more customers than any other mobile service provider in the world and has a

60 percent market penetration rate. It is best known for its excellent services to underprivileged

people living in rural areas. The company has tirelessly sought to provide excellent information and

communication services to those that would otherwise be at a disadvantage. Farmers are able to

get up-to-date price information on crops and livestock and are able to buy and sell agricultural

products using China Mobile Services.

The company is also renowned for its commitment to other disadvantaged groups such as disabled

people. China Mobile provides special services to disabled people in Beijing and sponsored the

Paralympics in 2008. The company‟s mission is to use their mobile services to enrich people‟s lives

and operate in harmony with society and the environment.

China Mobile uses GRI reporting standards which track their „Green Action Plan‟, which includes

energy efficiency measures for their data storage facilities and implements green building designs

for all their new state owned buildings (China Mobile, 2010).

AT&T

Historically, AT&T has not been recognized in the industry as a leader in the sustainability

movement. However, over the last few years, they have made significant company-wide shifts in

the prioritization of sustainability initiatives. Today, AT&T is deeply engaged in environmental

sustainability efforts, and through their commitment, they have developed aggressive initiatives to

help them become more energy efficient and to engage their key stakeholders in helping the

company minimize their environmental impact.

AT&T‟s comprehensive recycling programs and sustainable handset design initiatives are what

distinguish the company from its competitors. While AT&T does not produce mobile phones, they

are instrumental in driving the sustainable design, packaging, and materials used in handsets and

are in the forefront in handset lifecycle management from procurement to take-back. Rather than

only focusing on offering a few sustainable devices, AT&T is taking a broad approach to

incorporate elements of sustainability into all of its products. To help further this initiative, they now

require mobile phone manufacturers to abide by their updated packaging guidelines aimed at

reducing waste and the environmental impact. As a result of these efforts, AT&T was ranked #1 in

Green Carrier Matrix in 2009 and top ten in IDC's mobile operators' green ranking in 2011

(“Environmental Leadership Awards & Honors”, 2011).

Figure 14. AT&T's Handset Guidelines (“Environmental Leadership Awards & Honors | AT&T Corporate Responsibility,” 2011)

Other Mobile Services Companies and Organizations

Other companies add to the mobile services landscape by providing software and services that are

accessed through mobile technology, and the expansion of these services has the potential to

contribute to the sustainability of the industry at large. Will Hunsinger, CEO of Evri, a technology

company that develops content discovery software, recently shifted the company‟s strategy to

include a significant mobile component in its product line. This year, with more than 85 percent of

the handsets shipped globally expected to include a browser and, in mature markets, new and

innovative mobile web technologies are continuing to encourage enterprises to develop mobile

apps. Will believes that a heavy mobile strategy will be part of almost every enterprises portfolio by

2012 (W. Hunsinger, personal communication, May, 2011). At Mobile Disruption, a mobile

conference in San Francisco, the top influencers and experts in the mobile industry such as

Twitter, Groupon and Foursquare discussed the trends and opportunities in the mobile

marketplace. A significant topic of conversation was anchored around enhanced location

awareness technologies and its vast implications globally. By the end of 2011, Michael Shim, VP of

Mobile at Groupon, said that more than 75 percent of the devices shipped to mature markets would

include GPS technology, which could create significant business opportunities in emerging

markets. He referenced a few interesting use cases like weather warnings and language

translation that could be enabled by location information from a mobile device. However, according

to Shim, Groupon is delicately and methodically strategizing on the best way to expand their

presence in emerging markets.

Sustainability Reports and Results

The competitive matrix below evaluates the top mobile service providers, from different regions of

the world, on key sustainability activities and metrics. The information was gathered from the most

recent company CSR reports.

Figure 15. CSR Performance for Top Mobile Service Providers

Vodafone AT&T China Mobile ORGANIZATIONAL PROFILE

Markets served

Europe, Africa & Central Europe, and Asia Pacific & Middle East.

United States Services mainland China and Hong

Kong.

Revenue (2010)

$67.010B (USD) $49B (USD) $74.725B (USD)

Subscribers 341 million mobile customers 300 million mobile subscribers 600 million subscribers

Primary brands,

products and services

Mobile network for 2G & 3G, released 66 handset models & 4

netbooks, fixed broadband services

Wired and wireless voice and data, broadband Internet, TV and

messaging services

Mostly 2G service and phones and online banking and information

provider

Workforce 84,900 266,590 145,954

SUSTAINABILITY STRATEGY

Sustainability Issues

Key issues divided into 3 areas: Network: energy use & climate change, e-waste, health & safety,

community consultation for network rollout, mobile phone masts & health. Products & services: access

to communications for those who are currently excluded, socio-economic impact of mobile, content

standards to protect youth, privacy of location-based services. Brand presence & retail: responsible

advertising, handset reuse and recycling, clear/ transparent pricing, customer education on

sustainability issues.

Environmental sustainability initiatives based on four tenants: 1) Minimizing environmental impact

through development of environmentally friendly products, 2) Handset reuse & recycling

program, 3) Paperless billing, 4) ICT products that enable customers to increase energy efficiency and

reduce carbon emissions. In 2009, AT&T & Qualcomm launched ForHealth, using mobile

technologies and smart networks to improve the quality of health-related services to consumers.

Offer agricultural information

services to gives customers access to market prices. Allows for online money transfer between employees

and employers, wire transfers, bank withdrawals and mobile payments. China mobile offers special

services to Beijing paralympics. The heart card gives discounts on call times and subscriptions to all

disabled people.

Sustainability Strategy

1) Ensure Vodafone and our

suppliers have an ethical supply chain, 2) Deliver accessible products and services, 3) Reduce

our CO2 emissions by 50% by 2020, 4) Be recognized as having the most customer-relevant

environmental sustainability initiatives in our industry, 5) Establish joint CO2 reduction

strategies with key suppliers, 6) Build e-waste management capacity in key emerging markets,

7) Deliver innovative products / services recognized as contributing to the Millennium Development

Goals, 8) Provide 10 million carbon-reducing M2M connections.

1) Set handset guidelines for its manufacturers that include

standards on recyclability, restricted substances, conflict minerals, and energy-efficient universal charging,

2) Incorporate supplier GHG emissions into its calculations, 3) Reduce electricity consumption by

17% as compared with year 2010, 4) Deploy 15,000 alternative-fuel vehicles (AFVs) through 2018, 5)

Purchase wind power for 10% of electricity consumption in Austin, Texas facilities, 6) Recycle 95% of

all materials through its reclamation process, 7) Grow its e-waste management capacity throughout

the supply chain, 8) Deliver innovative environmentally friendly products.

China Mobiles sustainability strategy is based around installing

responsibility for the environment and society in all their stakeholders. They are most focused on the

social benefit that the company can provide to the Chinese people living in rural areas.

GOVERANCE

Highest governance body for

sustainability

CEO Vittorio Colao engaged on

sustainability. The Group Corporate Responsibility Director presents four times to the Executive

Committee and once to the Board of Directors each year.

Chief Sustainability Officer

established a governance model capable of integrating sustainability across the organization which

tethers its mandate to the Chairman‟s office

CEO is dedicated to sustainability

Stakeholder engagement

World Wide Web Foundation,

International Communications Technology (ICT), GSMA, Corporate Leaders Group on

Climate Change, Global e-Sustainability Initiative, CSR Europe, WBSCD

Chief Sustainability Officer initiated stakeholder engagement to identify materially relevant issues to AT&T‟s

sustainability strategy.

China Mobile hold frequent stakeholder engagement meetings with Customers, employees,

Suppliers and Shareholders to discuss sustainability issues.

Vodafone AT&T China Mobile ENVIRONMENTAL

GHG Emissions

Total CO2-e emissions (all sources) for 2010: 1.37 million tons.

Total net CO2 emissions have decreased by 9% against the 2006/07 baseline. The goal is a

50% reduction by 2020.

Total GHG emissions for 2010:

8.97 million tons. There is no set target to reduce its emissions.

China mobile are committed to

green building designs and energy efficient data servers.

Efforts to mitigate

environmental impact of products and

services

Reducing the carbon footprint of their networks, which account for more than 80% of the CO2.

Working with Tier 1 suppliers to reduce GHG emissions. Collaborating with the European

ICT for Energy Efficiency (ICT4EE) to shape climate policies for the industry. Aims to be a recognized

"green" brand in 75% of developed markets by 2012. Encouraging customers to reduce impacts during

use and end-of-life: handset recycling, fewer phone upgrades, universal charger, solar charger,

applying environmental design principles to handset design, e-billing, reduced packaging, and

videoconferencing and home working solutions.

Reducing GHG emissions, focusing on improving its fleet efficiencies by

purchasing 15,000 alternative-fuel vehicles through 2018. Implementing energy saving

solutions in its wireless network such as replacing controllers, using LED bulbs and repurposing equipment. Reducing energy use at

data centers. Taking part in industry & government collaboration to promote The Green Grid and chairs

the Telecommunications Energy Efficiency committee, which monitors best practices for energy

efficient telecom equipment. Pledged to purchase 10% wind energy for its Texas locations and

commissioned 3 solar systems in 2010. Reclaims network resources such as copper wire, mandates

environmental design principles in its handset guidelines, and encourages employees to get

involved in sustainability initiatives.

China Mobile has focused its attention on providing key information services to rural areas.

They currently provide information to farmers on crop prices and allow them to buy agricultural equipment

through their service.

HUMAN RIGHTS, LABOR & SOCIETY

Employment policies &

programs

Vodafone's Code of Conduct sets out the company's Business Principles, which cover ethical

issues including: bribery and corruption, conflicts of interest, data protection, environment, health and

safety, human rights, political contributions and lobbying and transparency. They are also

working to extend these principles to their 45,000 suppliers through their Code of Ethical Purchasing

and Supplier Assessments. They also encourage gender and cultural diversity, and provide employees

with training the development opportunities.

AT&T has an employee engagement program that provides

sustainability education via online videos and other content distributed on its sustainability focused Intranet

site. They also have a volunteer program called AT&T Cares and hold yearly awards to employees

based on their sustainability efforts.

China mobile have one of the best employee policies in mainland

China

Community giving programs

Channel 150 million euros of social investment through Vodafone Foundation and its 27 local

foundations since 2002. In 2010, they contributed 25 million euros. "World of Difference" program has

provided 7 million euros in funding to 1,500 skilled people with a passion for charity work in

developing countries. "Red Alert" is an emergency SMS fundraising program that provides disaster

relief. "Mobiles for Good" funds projects that use mobile technology to address the world's most

pressing humanitarian issues.

In 2010, AT&T contributed more than $148 million through corporate, employee and AT&T

foundation giving programs.

In 2010 China mobile built 175 libraries in rural areas and does a substantial amount of charity work

for under privileged people.

Vodafone AT&T China Mobile

Other social-

based programs

Extending access to communications to customers in

emerging markets. Offering applications such as mobile money transfer for people without bank

accounts and m-health solutions.

AT&T provides products and services that help teachers and

students achieve some of the educational objectives outlined in the American Recovery and

Reinvestment Act of 2009 (ARRA). AT&T is also involved in One Economy and made a $36 million

commitment to fund broadband access to undeserved communities in the U.S.

Sponsor Paralympics and provides

special needs for disabled people in Beijing.

SUSTAINABILITY AWARDS & RECOGNITION

Green Rankings

Corporate Knights Global 100 List

(2010) #8, Newsweek Global Green Rankings (2010): #11, IDC Top Green Mobile Operators,

Tomorrows Value Rating (2009) #1, ABI Research Telecom Top 10 (2009) #3 in Europe

Newsweek Global Green Rankings

(2010): #57, IDC Top Green Mobile Operators, Tomorrows Value Rating (2009) #19, ABI Research

Telecom Top 10 (2009) #1 in N. America,

Newsweek Global Green Rankings (2010): #35; China mobile becomes first company from

mainland China to be listed on Dow Jones sustainability index.

Conclusion

The mobile services industry has deep impacts on the environment, society, and the economy, and

this paper offered a vision for a better mobile future in these areas. In order to manage growth

wisely, the industry should embrace the opportunities for positive impact through the delivery of

services, while taking care to minimize impacts through its supply chain and handsets. All

companies in the mobile services industry should recognize that sustainability is a key component

of business innovation. Based on the industry players explored, the industry is well positioned to

capitalize on the potential for positive impacts in connectivity, society and economy. However, in

order to achieve maximum performance in the areas of the metrics identified companies need to

commit to a stronger portfolio of sustainability measures.

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