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Using electricity infrastructure to roll out broadband

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Shared infrastructure is a very smart initiative indeed and both in the USA and Australia the national broadband plans are investigating and actually pursuing such a trans-sector approach.


 

Sharing infrastructure makes a lot of sense. Without it the business model for universal high-speed broadband will not stack up – the costs of infrastructure is one of the most critical elements in any national broadband plan. Australia is following an identical course with the rollout of its NBN and utilities are either already involved or are negotiating to become involved.


 

There is certainly no uniform approach to smart grids among utilities, but at the same time many energy companies are fully aware of their need for much better communications requirements in relation to their network efficiency. They also acknowledge the need for the management of renewable energy and electric vehicles within their network and the increased demand for home automation networks (HANs). So a significant number of electricity utilities understand the strategic benefits associated with a combined smart grid/broadband rollout.


 

The fact that these two developments – broadband and smart grid – are happening at the same time is certainly viewed by the visionaries within both industries as a unique source of synergy.


 

The more strategically oriented utilities don’t consider this to be just an opportunity to make money by leasing the use of their poles. They understand the negotiating power they have to secure the best possible communications deal for their smart grid requirements.


 

Even without a cooperative infrastructure strategy, ensuring that broadband companies will use utility poles to install the street fibre should be high on the strategic agendas of the utilities. This would at least give them a seat at the table in the discussions relating to the NBP infrastructure, and it would also allow them, at least potentially, to negotiate a reasonable (that is, non-wholesale tariff) deal with the broadband companies.

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