The Benefits of a Partnership Between Communication Companies and Utilities

The notion of power utilities and telecommunications companies combining or working together is not new, but too often, regulators have stood in the way of a more holistic strategy for bringing these symbiotic industries together.

In an article for GreenBiz, Richelle Elberg, principle research analyst for Guidehouse Insights, says rather than waiting for the local or regional telcos to bypass incumbent utilities, power providers can work proactively with telecom companies to provide reliable green energy, possibly as a service.

The article explains how a marriage of the telecom and utility industries would promote energy savings and a modernized infrastructure. In addition, the partnership would reduce the risk of disintermediation and marginalization.

In the article, Elberg comments on how regulators often have lagged in understanding how legacy industries might decline rapidly following technological disruption. But improvements to critical infrastructure requires that regulators pave the way for legacy utilities and telcos to participate on an even footing with their less regulated competitors in Silicon Valley.

“Regulators can continue to ensure basic service needs are met, but also can place more importance on emerging threats, such as cybersecurity in critical networks,” Elberg said. “They can take pride in promoting green, sustainable solutions for energy and communications needs. It’s a win-win.”