How do cash-strapped Telcos who have a mandate in India to go Green work with their decreasing ARPUs, debt laden balance sheets & competition meet regulation and find a profitable solution?
There is a sustainable and replicable solution around Biofuels.
First let’s look at a mandate which makes sense for the GOI to mandate that the telecom towers go Green and sustainable, which makes sense environmentally. The need is to have a business model that now generates a ROI as a business model.
Cash-strapped Telcos Wary of Taking Green Call
The True Cost of Providing Energy to Telecom Towers in India
Telecom towers eating away diesel subsidy to the tune of Rs 4,300 crore per year
Telecom industry’s “diesel exploitation” exposed – Greenpeace report estimates loss to state exchequer at Rs 2600 crore annually
Connecting Billions Through Green Telecom- Market Development and successful business models for rural development and social inclusion
The potential solution?
The Triple Bottomline solution is;
1. The telecom tower companies sign a “Futures Contract” for supply of Biodiesel, hedges against Fuel Rises and Currency Volatility as % discount of retail fuel prices and Carbon Sinks from the Upstream plantations. Impact lower COGS and higher EBITDA
2. The potential business model that VayuGrid is pioneering;
i. Aggregates plantation rights as a socially inclusive solution as unused land, waste lands, reclamation lands, environmentally damaged lands and unused arid agri unproductive land, turning into productive assets
ii. Implements a world pioneering IP developed internationally around “Upstream” supplychains with FMV (Fair Market Value) buyback pegged directly to WTI & Brent crude prices
iii. Create distributed processing entrepreneurs for conversion to Biodiesel and other derivative by-products that serve markets from Agricultural Productivity, Biogas power
iv. Distributed Biodiesel to telecom tower companies as Futures Contracts, on-demand
v. Creates a whole new ecosystem, local entrepreneurs and main street financial ecosystems from banks to PE
vi. An ecosystem that entirely Green, does not need subsidies and is a Triple Bottomline model
This may be just the leverage India needs to look at solutions that are sustainable, not CSR but CSR+, self generating ROI that replicates itself creating a competitive industry.