Competition in Smart Metering Market

In the hope to get a sizeable share of the new smart metering business, telecommunications companies such as Deutsche Telekom are entering the smart metering market, competing with the utilities, Handelsblatt reports.

The paper quoted a board member of Deutsche Telekom as saying the business was “a market worth billions of Euros” with a volume “exceeding the internet many times over”. The consulting company Arthur D. Little expected world turnover in 2014 to be more than USD 42 billion, the paper added.

Deutsche Telekom’s foray in the utilities sector is an economical necessities, as the core business is shrinking Handelsblatt claims. While it is easy to trade power since the liberalisation of the German energy market, telecommunications companies had an advantage over other new market players with their customer base and sales network, the paper says. Mobile communications provider Freenet even started offering electricity contracts back in May.

Source: Handelsblatt, 18 August 2010, page 1

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