Monday, July 30, 2012

Background Market Research on the Utilities and why it is wise to be a part of the Public Safety Broadband


Another interesting area that I have researched is the Utilities industry. I have gathered a lot of data on this industry and clearly see its fit in the Public Safety Broadband play. They have an abundance of cash and assets (as illustrated below). These numbers are a little bit dated (two years), but it gives you a great idea of what one of the potential players could look like when it comes to Public Private Partnerships.




Here is a more specific breakdown on the Utilities industry in whole.



Just some guy and a blog….


3 comments:

Anonymous said...

Please note that the information you provide concerns solely utilities' POWER-related assets and revenue. There is very little connection between this and available resources for communications. Moreover, your data points out how many more private -- and small -- utilities there are than large, publicly held entities. This further limits resources. Ultra-reliable communications networks are necessary to the reliability of their services -- their number-one priority. Such systems take up valuable resources that are scarce in a heavily regulated environment.
Utilities are good partners in a responder network because their crews are emergency responders and they should be part of any network designed to restore normal life after an emergency, not because they have money to burn. Public safety associations historically have held out communications "partnerships" that assume that utilities will fund what public safety wants to use. It's not a position that should be encouraged.

Mike said...

Agreed..the data was actually extrapolated from Hoovers and reflects the entire asset base not just communications. You should note that typically any given Utility would have in its installed infrastructure roughly 15-20% of related communication and IT assets. Plus, it would traditionally spend about 10% of its CAGR on communications and IT capital programs every 3-5 years. I won't do the math here, but that is a lot of money spent on IT and communications assets/programs for any given operating entity...whether private or public.

The point being; by teaming up on the Public Safety Broadband P3s the Utilities industry (private or public) would be able to cut costs and adjust their capital programs pertaining to their broadband need by offsetting the risk and adjusting the expenditures to roll into the SPV established by a States Public Safety Broadband Public Private Partnership. In short, they wouldn't have to spend the money to build their own "private" LTE network that will be the norm in the next few years. In 5 years try installing a 3G cellular platform to connect all the SMART Meters. It won't happen. If that is the case then the Utility will have two ways of doing it; either buy it from a commercial carrier on their terms and their hardening requirements; or buy it/share it from the Public Safety Broadband Networks private partnerships.

Mike said...

PS.. If you think the installed asset base of the Utilities is big -- you see the combination of Transportation, Healthcare, Financial Services, and Infrastructure. All of which need broadband access and all of which can take part in Public Safety Broadband P3 because they all have National Security and Public Safety response capabilities.

Moto

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