ERICSSON GOES GREEN, CONTRACTORS SEE RED – This morning, just hours before President Donald Trump's inaugural address in which he said he would “end the Green New Deal,” Ericsson sent a letter to wireless carriers stating that This would be the case if they did not If the company participates in its “Net Zero” climate initiative, this would be “a decisive factor when considering offers and contract extensions”. Wireless infrastructure contractors are demanding federal regulators override Ericsson's high standards.
In President Donald Trump's inaugural address today, one of the first things he did was say that he would “end the Green New Deal.” His timing was perfect for wireless carriers, who learned this morning of Ericsson's move to mandate participation in its Net Zero climate initiative, which has drawn sharp criticism from contractors who say the requirements are impractical, unsustainable and unrelated to the core functions of telecommunications.
The Swedish telecom giant's demands, outlined in a letter to providers obtained by Wireless Estimator, include submitting a detailed plan to reduce emissions and aligning with climate targets, which many contractors find burdensome and out of sync with their operations .
This is not a voluntary program from which contractors can opt out, as Ericsson management made it clear in its statement: “In the future, your commitment to reducing carbon emissions will be a decisive factor when considering offers and the contract extension.”
Unfunded mandates continue to burden contractors.
The controversy highlights growing frustration within the wireless industry over what contractors perceive as a cascade of unfunded mandates imposed by prominent players like Ericsson. Contractors argue that such initiatives add unnecessary obligations to their already demanding jobs, which involve using diesel trucks, cranes and specialized equipment to ensure reliable radio coverage.
“These mandates don’t even make sense for the good of telecommunications,” said one contractor. “We are concerned with building and maintaining infrastructure and do not become environmental analysts. We drive diesel trucks, set up cell phone sites and risk our lives so that people have five bars of insurance coverage. We are being asked to follow initiatives that are far removed from our core mission.”
Economic pressure from Ericsson's pricing
Contractors also point to Ericsson's pricing practices as a long-standing problem and accuse the company of pushing project budgets to unsustainable levels. Many feel that the burden of adding climate regulations will become unsustainable.
“Most of us are small operations with a handful of trucks,” said another contractor. “We are now expected to complete detailed emissions plans and comply with regulations that require significant resources and expertise that we do not have. This is another burdensome obligation that we cannot afford.”
Calls for FCC intervention
Critics have called on the Federal Communications Commission (FCC) to examine whether such mandates are consistent with the agency's broader vision. They argue that while environmental sustainability is a worthy goal, it should not come at the expense of the small businesses that form the backbone of the wireless infrastructure supply chain.
“We need the FCC to step in and assess whether the industry should go in this direction,” said one contractor. “Ericsson isn’t even an American company. Why are U.S. contractors bearing the brunt of their global initiatives? These guidelines seem more like a political statement than a practical business decision.”
Ericsson's attitude and reaction
In its letter, Ericsson emphasized the importance of aligning with its sustainability goals, pointing to resources such as the SME Climate Hub and GHG Calculation Tools to help contractors meet the requirements. However, the company acknowledged the complexity of the process and offered guidance on completing the issuance template.
Although the tone of communication was collaborative, many contractors feel that the timing and scope of the initiative does not fit their operational circumstances.
Further impacts on the industry
The debate highlights a growing tension between the pursuit of corporate sustainability and the practical limits of small contractors in the telecommunications supply chain. Critics argue that the industry needs to find a balanced approach to sustainability – one that supports environmental goals without jeopardizing the viability of key contributors to the wireless ecosystem.
“This is just another nail in the industry’s coffin,” said one contractor. According to Wireless Estimator, many of the industry's long-term contractors are closing their doors because they cannot survive on the matrix pricing imposed by the country's three-carrier oligarchy. As contractors voice their concerns, the hope is that policymakers and industry leaders will take note and work toward solutions that meet the needs of all stakeholders. It remains to be seen whether the FCC or other regulators will step in to review these regulations. Still, for many contractors, the message is clear: sustainability initiatives must be achievable and relevant to the industry in which they operate.
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