Making money on the smart grid

Smart grids are both an expensive and potentially extremely lucrative undertaking. That is the reason the market has a bevy of players looking to get involved, but also carefully weighing the best path to do so. From a telecom service provider's perspective, fatter pipes are their biggest bargaining chip, but the ability to do more with them is what makes the market so appealing. As the market stands today, advanced meter infrastructure (AMI), or the new automated meters themselves, are what is driving investment in grid overhaul. This is largely because most states are putting in mandates that utilities have to update their meters, but it also because they are the easiest to implement, according to BroadbandTrends analyst Teresa Mastrangelo. Most importantly, they are a logical step towards demand response, which is the ultimate goal.