Utilities could spend at least $3.2 billion on telecommunications equipment and services this year, according to a study released 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. and upgrading utility communications and information technology.
The report, 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.
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Table of Contents
Executive Summary and Analysis
I. Introduction
II. Characteristics of the Survey Respondents
III. Spending on Utility-Related Telecommunications Products and Services
IV. Smart Grid-Related Spending
V. Wireline v. Wireless Spending
VI. Dynamics of the Procurement Process and Vendor Assessments
Appendix One - Cross-Tabulation of Sample Responses by Type of Ownership
Appendix Two - Cross-Tabulation of Sample Responses by Type of Ownership
List of Figures
Figure 1 - Type of Businesses Represented
Figure 2 - Geographic Regions Served by Respondents
Figure 3 - Respondents by Type of Ownership
Figure 4 - Total Customers Represented in the Sample
Figure 5 - Total Customers Represented in the Sample
Figure 6 - Total Spending on Transport Networks by Category
Figure 7 - Total Spending on Leased Lines by Category
Figure 8 - Total Spending on Leased Lines by Category
Figure 9 - Total Spending on Land Mobile Radio by Category
Figure 10 - Percentage of Wireline v. Wireless Spending 2011 and 2016
Figure 11 - Role of Respondents in Purchasing Decisions
Figure 12 - Percentage of Times Bids are Solicited
List of Tables
Table 1 - Breakdown of Respondents by Parent Company Total Annual Revenue
Table 2 - Degree to Which Utility Outsources Communications
Table 3 - Annual Budget for Purchasing Telecom Services
Table 4 - Budgeted Capital and O&M 2011 - Top Categories
Table 5 - 2011 Budgeted Capital and O&M, By Category
Table 6 - Breakdown of Smart Grid-Related Expenditures
Table 7 - Primary Factors Influencing Choice of Vendors
Table 10- Annual Telecom Purchasing Budget by Type of Ownership
Table 11 - 2011 Telecom Budget Increase by Type of Ownership
Table 12 - Spending on Transport Network (Fiber) by Type of Ownership
Table 13 - Spending on Transport Networks (Microwave Analog) by Type of Ownership
Table 14 - Spending on Transport Network (Microwave Digital) by Type of Ownership
Table 15 - Spending on Transport Network (Private Cabling) by Type of Ownership
Table 16 - Spending on Leased Lines (T1s) by Type of Ownership
Table 17 - Spending on Leased Lines (Fiber) by Type of Ownership
Table 18 - Spending on Leased Lines (Other) by Type of Ownership
Table 19 - Spending on Land Mobile Radio Systems (Voice, Private Internal) by Type of Ownership
Table 20 - Spending on Land Mobile Radio Systems (Voice, Commercial Wireless) by Type of Ownership
Table 21 - Spending on Land Mobile Radio Systems (Data, Commercial Wireless) by Type of Ownership
Table 22 - Spending on SCADA Systems by Type of Ownership
Table 23 - Spending on Network Management Systems by Type of Ownership
Table 24 - Spending on Cybersecurity by Type of Ownership
Table 25 - Spending on Advanced Metering by Type of Ownership
Table 26 - Spending on Satellite Communications by Type of Ownership
Table 27- Annual Telecom Purchasing Budget by Region
Table 28 - 2011 Telecom Budget Increase by Region
Table 29 - Spending on Transport Network (Fiber) by Region
Table 30 - Spending on Transport Networks (Microwave Analog) by Region
Table 31 - Spending on Transport Network (Microwave Digital) by Region
Table 32 - Spending on Transport Network (Private Cabling) by Region
Table 33 - Spending on Leased Lines (T1s) by Region
Table 34 - Spending on Leased Lines (Fiber) by Region
Table 36 - Spending on Leased Lines (Other) by Region
Table 37 - Spending on Land Mobile Radio Systems (Voice, Private Internal) by Type of Ownership
Table 38 - Spending on Land Mobile Radio Systems (Voice, Commercial Wireless) by Region
Table 39 - Spending on Land Mobile Radio Systems (Data, Commercial Wireless) by Region
Table 40 - Spending on SCADA Systems by Region
Table 41 - Spending on Network Management Systems by Region
Table 42 - Spending on Cybersecurity by Region
Table 43 - Spending on Advanced Metering by Region
Table 44 - Spending on Satellite Communications by Region
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