Words can get in the way as energy and telecommunication providers collaborate to build a smart grid network

By Andrew Hebert, VP Industry Solutions at AT&T

Every day in business and social interactions we encounter dozens of words that have multiple meanings. A simple three-letter word like bow, for instance, can mean the branch of a tree, a respectful bend from the waist, a weapon used to shoot an arrow, a fancy knot tied with ribbon or the front of a ship.

One of these multiple-meaning words that I encounter often in my profession is "wireless," which can refer to cellular, Wi-Fi, WiMax, private mobile radio, ZigBee, and Bluetooth connectivity. In a professional context, the meaning of words becomes especially important when two industries with their own distinct lexicons begin to collaborate on a common solution. The utilityandtelecommunications industries are finding themselves in just such a situation as they build an extensive overlay for the nation's energy grid. In a sense, a whole new network will come online over the next half dozen years, one that will ultimately help us save billions of dollars in energy usage.

As we combine the energy grid and a smart network based on advanced metering infrastructure (AMI), and ultimately a smart grid, we constantly find ourselves in need of verbal precision. For example, the term "public network" often raises security concerns. The use of the word public is misleading in this context. On the surface, network services provided by the telecommunications industry, whether wireless or landline, are publically available. However, the vast majority of those enterprise-based services are private; data that is communicated across that private connection never comes in contact with what is considered a public network like the Internet.

There are other terms that can create misunderstandings in the AMI arena, mostly concerning wireless network security, operational costs and capacity. Here are the top myths circulating out there about public wireless networks and their applicability for use as part of an advanced metering infrastructure. If we are not careful, accidents of interpretation could take on near-mythic proportions. Let's take a look a several near-myths along with the reality.

Myth # 1

Public wireless networks are Internet-based: Major providers of network services can make Internet services available, but they don't necessarily use the Internet to transport a client's data. Providers can just as easily segment a client's traffic away from the Internet and create what is essentially a private network experience for their users and smart grid infrastructure.

Myth # 2

Private network security algorithms are more secure: Common carrier security algorithms are highly secure because of the types of highly secure information that is transported on their networks. In addition, extra layers of security can be applied to a private connection through a public network so that data does not touch the public internet. AT&T has the capability, with its Commercial Connectivity Service, to provide end-to-end encryption from the meter to the utility's fire wall. AT&T has one of the world's most advanced and powerful global backbone networks, which carries 18.3 petabytes of data traffic on an average business day and includes more than 928,000 fiber route miles worldwide

Myth # 3

Private network implementations are less expensive than using a publicly available network: In fact, studies show that the actual cash outlay for public networks is less than that for private networks when management and ongoing operational costs are taken into consideration. A swing vote in the debate over public vs. private networks comes into play when the ability for utilities to place capital expenditures into the rate base is considered.

Myth # 4

A utility-owned private network allows the utility to prioritize disaster recovery: In practice a given utility prioritizes restoration of its core service offering. The energy utility will prioritize recovery efforts on the power grid. The same is true of a telecommunications company, where restoration of wireless network service becomes the absolute priority. A utility using a public wireless network chooses the advantages inherent in a core competency model.

Myth # 5

100 million meters would overwhelm a public wireless network: Interestingly, the geographic distribution and the low bandwidth used by AMI represent a small impact to the capacity of a cellular wireless network. Public carriers continue to scale capacity to meet demand as the multitude of devices running on the cellular network continues to grow... from downloading books to e-readers to wireless home security monitoring systems.

Look beyond the words and take a hard look at the "public" networks' ability to handle AMI traffic and smart grid network management. AT&T plans to invest $17-18B in 2009 in our wired and wireless networks, with more than two-thirds going for broadband and wireless. You may find that the simplicity, performance, and ability to take advantage of AT&T's network investment might outweigh the upfront investment and the ongoing costs that you are likely to incur in building a separate network. Existing telecommunication networks might be the final word for your smart grid.