Modernizing the energy grid

Can you describe the main business challenges in the utilities market and explain how you are attacking these challenges?  

Ryan Keefe. The main business challenges we face are overcoming the incentives utilities have to make a rate of return on CAPEX. As a result, much of the industry is attempting to own and operate their own private communication networks. This is translating into longer pilots, additional R&D, regulatory education, new standards development, etc. All these issues are delaying the modernization of the energy grid.

History has shown us that all industries should focus on their core competencies. We are attacking these challenges by developing alternative business models that align better with utilities daily business practices. We are also creatively partnering with utilities to align national broadband efforts with smart grid deployments.
 
What is the difference between commercial and private networks?

RK. There are many difference, however, the biggest difference between the networks are licensed vs. unlicensed spectrum and how they are operated. Private networks typically operate on 900mhz or 2.4Ghz radio frequencies (RF). Unlicensed RF must accept interference and cannot interfere with anything else. Additionally there are thousands of pre written scripts that can be used to exploit and hack into these networks, generating much of the cyber security concerns from regulators.

Unlicensed RF is also used in many household and consumer devices such as: cordless phones, wireless speakers, wireless headphones, baby monitors, Wi-Fi routers. In addition many home area network devices, such as thermostats, light switches and appliance modules are in development to operate in the 900mhz space. These devices are constantly in jeopardy of interfering with each other, add millions of meters to the mix and you drastically reduce the reliability of these networks, indirectly increasing OPEX.

Commercial networks operate on dedicated spectrum. T-Mobile operates on 1900mhz and AWS (1700/2100mhz). T-Mobile operates above 99 percent reliability with milliseconds of latency, and we must meet federal mandated guidelines for security, reducing cyber security concerns. Additionally, the network is already built and stimulus funds (tax dollars) shouldn't pay to duplicate what already exists. Commercial networks cover 99.6 percent of the population that live within a Census block.
 
Can you describe how your relationships with strategic partners provide an end-to-end solution?  

RK. Our strategic relationships leverage their AMI and smart grid systems with commercial networks. For example, we have a great partnership with Echelon Corporation, which combines commercial networks and their technology, delivering the benefits to the utility and consumer. Their new Echelon Control System (ECoS) provides an open applications platform that can host a range of third-party applications that provide intelligent distributed control services to utilities and their customers. With ECoS running on transformer-mounted ECN 7000s throughout the distribution grid, local, autonomous control decisions are made in near real-time for maximum reliability, survivability and responsiveness of the electric grid. All connectivity is made possible through commercial networks. This solves your interoperability and longevity concerns that many regulators and utilities have.

How can you address coverage concerns when working with utilities?

RK. Today, the T-Mobile network covers 96 percent of the population. 100 percent of our network is built within utilities service territories. In many cases our network is built on utilities real estate. T-Mobile and utilities can swap real estate for tower sites in order to provide ubiquitous coverage for smart grid initiatives. It's a win-win-win. T-Mobile benefits by expanding our network, utility gains access to commercial networks for smart grid, and consumers benefit by gaining a broadband network.
 
What can we expect to see from T-Mobile in the next 12 to 24 months?

RK. You can expect to see T-Mobile continuing to be the easiest to do business with and lead the M2M industry.

Biography

Ryan Keefe currently leads T-Mobile's Smart Grid initiatives nationwide and has been developing T-Mobile's efforts to address connectivity requirements as they relate to the smart grid. Keefe works with several business units to bring a turnkey solution to many utilities that would like to utilize existing commercial networks.