By Michelle Choi, an insider at Lease Advisors
The telecommunications industry has gone through incredible technological advancements throughout the years, evolving from TDM [time-division multiplexing] to IP [Internet protocol] networks for example. Despite ongoing evolution, the industry has consistently faced issues including security threats to its infrastructure. Electric power vendors provide the technology that supports carrier’s security and communications systems, but these vendors have issues as well. What has been described by industry analysts as sluggish organizational culture, frugal investment and high regulation with little incentive or competitive pressure has created an environment that points to network investment as a solution.
The utilities market represents billions of dollars of revenue potential for telecom industry energy and service providers, making it a great market opportunity. Companies such as Alcatel-Lucent, Cisco Systems, Ericsson and RAD Data Communications have been serving the IT communications needs of cellular operators for years. Their operational technology—monitoring systems, physical grids, automatic devices and other equipment—have been critical in keeping wireless networks up and running for carriers and other telecom service providers. These companies, who have been reliant on the largest telecom companies, would serve their own needs to diversify by engaging the utilities market and expanding to cloud service.
Why are telecom vendors suddenly interested in this market? One reason is that automation is entering power systems. Sensor-driven smart grids with the capabilities to power tower systems are being integrated quickly; these sensors and equipment gather information, monitor operations and communicate with other devices. ”The world is being filled with automation,” Amir Barnea, head of RAD Data’s Critical Infrastructure Line of Business, says. “You have SCADA—all the devices that turn power on and off—that make autonomous decisions based on information from sensors. You have teleprotection, which is the very important capability to detect a problem and protect the grid by shutting down a particular line if necessary.”
The increasing communications platforms and security solutions approaching telecom carriers and tower companies should lead to faster, more reliable and efficient networks. Necessity breeds innovation, and the need to improve the security of networks should bring critical infrastructure to a new level. This is an environment that speaks to network and infrastructure investment.
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