Profiting from Smart Meter Communications Networks

Date: January 22, 2011
Pages: 18
Price:
US$ 2,995.00
Publisher: Ovum
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: P45D37A1CE1EN
Leaflet:

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Profiting from Smart Meter Communications Networks
Introduction

Ovum believes there is potential for some alternative thinking when it comes to recovering the costs of smart meter networks. In many respects, the business models of utilities are starting to evolve at an increasing pace. Recent discussions with enterprises from a range of other industries have highlighted the potential for utilities to leverage the network that sits alongside AMI.

Features and benefits
  • Looks at some of the major issues and realities facing smart meter deployments, as well as providing recommendations to recover costs.
  • Considers Cisco's solution, Smart+Connected Communities, as an alternative revenue generation concept for utilities.
Highlights

The quest to offset the large capital investment required for smart metering is beset by a number of problems. Firstly, it is unclear to what extent utilities will be able to reduce their operational costs, thereby making return on investment (ROI) calculations difficult.

Your key questions answered
  • Understand Ovum's view of alternative revenue opportunities for utilities rolling out smart meter infrastructure.
  • Gain greater insight into Cisco's Smart+Connected Communities solution set and how such an approach might help utilities.
SUMMARY

Catalyst
Ovum view
Key messages

SMART METER ROLLOUTS FACE A NUMBER OF ISSUES

Think outside the box to investigate potential revenues
Mandates from regulators often drive requirements
Multiple networks are being rolled out within cities
National broadband initiatives are not always the solution
Smart meter networks require significant capital expenditure

CISCO’S SMART+CONNECTED COMMUNITIES

Cisco presents opportunities
Leveraging a single network for all city services
The single-network becomes the backbone of a "city cloud"
  The SDP allows for easy addition of services
Cisco’s services organization plays a significant role
S+CC does not normally start with utilities, but still provides ideas

CHALLENGES ABOUND WITH THE ALTERNATIVE REVENUE APPROACH

Who pays, support, and a highly regulated industry
Who pays for the network first?
Technology requirements could drastically change
Utilities may not be able to operate a service provider model
Regulators will be a major roadblock

RECOMMENDATIONS

Recommendations for enterprises
  Start viewing the network as a potential revenue-generating asset
  Retain flexibility in AMI network design
  Engage in discussions with organizations that might look to leverage a common network
  Push vendors to demonstrate cross-industry expertise and bring parties to the table
  Deal with regulators as early as possible
Recommendations for vendors
  Demonstrate cross-industry expertise
  Engage with line-of-business leaders tasked with costs
  Drive thinking within industry forums

APPENDIX

Further reading
Methodology
Author
Ovum Consulting
Disclaimer
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