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By Jesse Berst
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Sprint's hopes to become a major smart grid communications supplier got a boost today with the announcement that four companies will directly support the Sprint cellular network. Meter maker Itron will enable its meters; Silver Spring Networks will offer a Sprint-compatible option; Lanner will enable its substation computing platform; and Power Insight will make its building energy management software Sprint-compatible.
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Those companies will continue to offer their previous connectivity choices as well, of course. We expect similar announcements from many other suppliers and many other cellular companies. Cellular is far from the default choice for utilities and may never be so; but it is quickly emerging as a viable option to consider.
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If the cellular companies were smart, they would lower their fees even further to capture market share and long-term relationships. They need to fall at least another 25% to provide a clear cost differential (and to withstand cost reductions by suppliers such as Tropos).
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Cellular companies weren't smart in the early days of the smart grid and they watched the first generation go almost exclusively to rival technologies. Let's see if they've wised up yet.
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Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.
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