Utility Wireless Collocation is Growing; So Are Concerns About Risks

September 11, 2007

For More Information
Kristy Weinshel
202.833.6815
kristy.weinshel@utc.org [1]

Utility Wireless Collocation is Growing;
So Are Concerns About Risks

Washington, D.C. – Wireless collocation on electric utility assets has grown more than 20% over the past two years, according to a survey completed in by the Utilities Telecom Council (UTC). Some utilities see collocation as a significant revenue opportunity, but the UTC survey found that the most important factors affecting utility decisions to allow wireless attachments are the safety, regulatory, engineering, and business risks associated with collocation.

The Federal Communications Commission (FCC) has authority in many states over the distribution infrastructure of investor-owned utilities (IOUs) for the purposes of pole attachments, including wireless attachments. IOUs, municipal and co-operative utilities,however, may be subject to state collocation laws, resulting in a broad variety of regulations, and corresponding utility business and risk mitigation models across the U.S. UTC conducted a survey of utilities, as well as in-depth interviews with utility managers, to create its new Wireless Attachment Market Report. The report discusses trends in the wireless collocation market, and outlines some of the business and risk mitigation tactics that utilities are using as their wireless collocation strategies evolve, including:

Some utilities are creating separate asset management businesses for attachments;

Other utilities are building special towers near electric substations to provide collocation, while others are building poles and lines exclusively for wireless services;

Utilities reported that the majority of wireless attachments are intended for Internet access services, for which regulations allow utilities to negotiate market-based rates.

"The growth of wireless services, and carriers' need for siting, create important business implications for utilities," said William R. Moroney, UTC President and CEO. “Utilities that are able to properly handle the regulatory and business aspects of wireless collocation may be able to create successful business models that also benefit the communities the utilities serve."

For more information or to order the Wireless Attachment Market Report, visit the Research portal of the UTC Web site at www.utc.org [2], or contact UTC Research by emailing research@utc.org [3] or calling 202.833.6805.

Utilities Telecom Council
The Utilities Telecom Council (UTC) is a global trade association dedicated to creating a favorable business, regulatory, and technological environment for entities that own, manage, or provide critical telecommunications systems in support of core services. Founded in 1948, UTC has evolved into a dynamic organization that represents the broad communications interests of electric, gas, and water utilities; natural gas pipelines; other critical infrastructure entities; and other industry stakeholders. UTC’s new UtiliSite Council affiliate serves the interest of utilities involved in the carrier support market by helping utilities to develop best practices and procedures to speed market responsiveness. Visit www.utc.org [4] for more information on the UTC or its affiliate, the UtiliSite Council.

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