“Smart grid investments are dependent upon reliable, ubiquitous communications and not all utilities have the resources to build and manage these networks themselves,” says Richelle Elberg, senior research analyst with Navigant Research. “Public cellular networks are beginning to make headway in the utility environment thanks to a convergence of factors, including dramatically reduced pricing for cellular machine-to-machine connectivity, ubiquitous network coverage, and significantly improved reliability and security.”
However, utilities face a number of challenges in shifting to cellular, according to the report. For example, cellular carriers typically update their technology every 3 to 5 years, while utilities operate on a 10- to15-year lifecycle. In addition, particularly in North America, utilities are incentivized to make capital investments, which can be recovered in rate cases, versus increasing their operating expenses. Public cellular service adds to a utilityÂ’s operating expense line, which may lower profitability.
The report, “Public Carrier Networks for Smart Grids”, examines the global market opportunity for cellular smart grids. The study provides an analysis of the drivers, market challenges, and technology issues that will shape the market over the coming decade. Global market forecasts for public cellular communications nodes, segmented by application, region, and technology, extend through 2020. The report also profiles the key vendors, utilities, and carriers related to the cellular smart grid ecosystem.