Utility Spending on Telecom Could Reach at Least $3.2 Billion in 2011, UTC Study Finds
Wireless Communications Spending Could Double in Five Years
(Washington, DC) The nation's utilities could spend at least $3.2 billion on telecommunications equipment and services this year, according to a study released today by the Utilities Telecom Council (UTC). This level of communications spending represents a 21% increase over the estimated $2.64 billion utilities spent in 2009 and at least a 3% rise over the $3.1 billion spent in 2010.
The study, Utilities Telecom Spending Market Forecast, is based on an extensive survey of UTC's utility members and provides detailed data regarding utility spending on transport networks, leased lines, land mobile radio and other key communications technologies. Chief among the categories of telecom-related spending is advanced two-way metering and associated networking, which represents around 32% or around $1 billion of the total utility telecom spending in 2011, the study finds. The second largest category of telecom spending, according to the study, is transport networks, with utilities expected to spend around $813 million on fiber, microwave, WiMax and other forms of transport technology this year.
However, wireless communications is the major growth area for utility telecommunications. Spending on wireless communications as a proportion of overall telecom spending could double over the next five years, growing from 28% of telecom spending in 2011 to half (50%) of all telecom spending in 2016, according to the research.
"The vast majority of utilities perform their own telecom operations, particularly now as smart grid technologies fuel the modernization of the nation's energy grid," Connie Durcsak, President and CEO of UTC, said. "Our study once again confirms that utilities are important players in the telecommunications world, investing billions of dollars annually to build communications infrastructures that ensure efficient, reliable and safe delivery of critical utility services to all Americans."
Utilities Telecom Spending Market Forecast presents extensive data on the types of telecom equipment and services utilities purchase as well as the purchasing process for communications-related equipment and services. The study's report presents statistics on the key factors that lead utility technologists to purchase particular vendors' products and services as well as individual vendor satisfaction ratings by the survey respondents.
The nearly 60-page report of the Utilities Telecom Spending Market Forecast is available to UTC's core utility members at no charge. UTC associate members and non-members can purchase the report. The report is available at http://www.utc.org/utilitiesspendingforecast2011.
This report was made available through a sponsorship by the Harris Corporation.
Utilities Telecom Council
The Utilities Telecom Council (UTC) is an international trade association representing the information and communications technology (ICT) interests of electric, gas and water utilities. UTC is widely recognized as a global expert on utility communications policy and technologies, conducting complex public and private research projects on behalf of our membership and clients. UTC's 500+ members include investor, government, and cooperatively owned utilities, their technology partners. UTC has a proven track record of issuing timely information bulletins, hosting important webinars and mounting national, regional and local events aimed at translating critical technical information into practical how-to guidance for utility technologists. We also produce high-profile and timely research studies and analyses that tackle the top issues facing utilities as they revamp communications networks to manage 21st Century energy and critical infrastructure challenges.
