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communication protocols from the smart meter through detailed behavioural information such the time of
to the data management system. There are a number of day people watch TV, frequency of running washing
options being explored from utilising existing machines, when they are on holidays, and so on.
communication providers’ networks being that fixed or Similar to loyalty programmes like the Tesco Club
mobile; adapting communications technology for a card which collects data on the shopping habits of
hybrid solution involving RF, PLC, WiMAX, 3G, 20 million UK people, this data would be of
Broadband; or leveraging lowest-cost, readily available, significant value from a marketing perspective and
functionally sufficient technology like GPRS. can be used in targeting and creating new services.
For example, Telcos could provide insulation companies
The UK government has suggested that they favour a with information on customers with high heater
WiMAX enabled model similar to the one currently that usage. Similarly, information on the hours of usage
is being rolled out in Australia. for appliances can be provided to manufacturers or
retailers so that they know when a customer’s
Green revenue opportunities appliance is approaching replacement age.
2nd generation smartmeters will allow customers to
connect to energy management solutions remotely and Challenges
will also provide the functionality to control individual As Utilities are subject to greater regulation than the
appliances on an automated basis. Telco sector, Telcos will need to be prepared to operate
in a more restricted environment. For example, the need
By providing the communications to enable introduction to address issues such as traffic prioritisation and security.
of these 2nd generation devices, Telcos could help drive
changes in energy consumption behaviour to deliver Access to energy usage data would open the door to
benefits significantly beyond those anticipated from data privacy issues. Careful consideration of the use of
1st generation technologies. the data both legally and in terms of public
acceptability is key.
The obvious opportunity for Telcos is to secure the
revenue associated with the connectivity between the Opportunity 4: Business and residential – optimise
smart meters and the utility companies initially, but network usage by discouraging IP traffic that
ultimately to underpin a fully-fledged smart grid. generates negative economic value
As there is currently limited compatibility between smart
meter infrastructures, Telcos need to lead consultation Current activities
with the government and other bodies to establish and Global IP traffic is forecast to grow fivefold between
embed the standards required to enable rapid and 2008 and 2013 and is likely to reach 56 exabytes per
large-scale development of the infrastructure. month in 2013 compared to approximately 9 exabytes
per month in 2008.
19
Of this, it is estimated that mobile
However, the bigger opportunity lies in the role that data will grow by 66 times to over 2 exabyte per month
22
.
Telcos could play in the management and analytics of This means that by 2013 the monthly mobile data
energy usage data. This would allow them to augment traffic will exceed the 2008 annual level. In addition
their role from merely providing a ‘dumb pipe’ video format traffic such as IPTV, VoD and P2P will
capability to become a provider of value-added energy account for about 90% of total consumer traffic.
19
management services such as: Clearly this growth in traffic is also likely to increase
emissions.
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electrical devices such as dishwashers, TVs, lighting, The principle of net neutrality advocates that all IP
fridges, heating and air conditioning to enable the traffic is treated equally, regardless of origin, destination
devices to be remotely monitored and controlled in and economic value and it has led in part to the
real-time. This allows better understanding of how prevalence of ‘all you can eat’ tariffs. As such, there are
energy is used and managed at the appliance level currently few mechanisms that discourage growth in
increasing awareness and empowering individuals to traffic that generates negative economic value, such as
make informed decisions in reducing and smoothing copyright theft, and the associated emissions.
transmission demand, and to capitalise on variable
power prices. For example, Telcos can provide the Sweden was one of the last countries to introduce an
infrastructure and solutions that enable customers to anti-piracy law based on the EU Property Rights
see current power usage and trends online, and Enforcement Directive (IPRED) that allows copyright
remotely manage their electrical devices. holders to force ISPs to reveal details of file sharers.
However, on the day that the law came into effect,
19 Cisco – Visual Networking
data traffic in and out of the country fell by 33%.
20
Index: Forecast and
This suggests that as much as a third of internet traffic
Methodology
could be associated with transactions of negative
2008-2013 (June 2009)
economic value.
20 Netrod – Piracy law cuts
internet traffic
(April 2009)
© 2009 Deloitte LLP
6
. All rights reserved. xiv
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