Regulation May Be Needed to Spur Smart Grids, CTIA Told

LAS VEGAS -- The U.S. may need regulatory action to fulfill the potential of the smart grid, suggested a panelist at a CTIA presentation. Kore Telematics CEO Alex Brisbourne said the lack of a clearcut standard was holding back efficient implementation.

"When we look through the broad swath of utilities, we see a lot of feuding over what is going to be the appropriate connectivity technology,” Brisbourne said. “The cellular network is ubiquitous and carries very little risk. But from Duke Power to SDGE, everyone is using different technology and that is not efficient. It is one of the very areas where regulatory pressure would be helpful.” He pointed to the EU’s regulatory initiative that mandates a 20 percent reduction in greenhouse gas emissions and 20 percent increase in energy efficiency by 2020.

Steve Pazol, president of the Qualcomm/Verizon joint venture nPhase, disagreed: “I'm against regulators picking technology winners -- there’s not a great track record there.” Natural market forces will decide the winning technologies, he said. While the current system may be inefficient, “in the long run we'll have a better solution,” he said.

There’s already regulation driving choices, said Abhi Ingle, an AT&T vice president. “The real question is, does it matter if you choose a WiMAX network or a mesh network.” Ingle predicted the ultimate solution would employ hybrid models to accommodate the specific needs of a given geographical area: “A private network can coexist with a public network. Interoperability is what we are striving for."

Coverage becomes a significant issue, said Kore’s Brisbourne. “We're talking about a public network that hasn’t been built,” he said. “What’s needed to embrace broad adoption is there in today’s networks. It’s all relatively low capacity stuff. We have got to get the information [provided by smart meters and other smart grid technology] into the consumers’ hands now or we will be building new generating stations."

Speakers said an IP solution seems inevitable. Stratery Senior Vice President Brandon Harron said IP was especially suitable for in-home solutions and expressed skepticism that Zigbee-like technologies would stick. “Do people really want another network in their home? The way to get the price down is to use existing systems already in the home.” The public needs to be patient, he said. “If you give regulated monopolies the right incentives, they will do it. But just as we wouldn’t have wanted the Internet judged by the first webpages or first browsers, we don’t want the smart grid judged by some early setback.”