Analyst Report

EVAM Top 30: Verizon is leading light in Informa’s top 30 operators in the utility market

Verizon, Vodafone and Deutsche Telekom lead Informa’s ranking of top operators in the market to supply services to the utility sector. “Utilities” are defined as suppliers of energy, water, and district heating/cooling, Energy Services Companies (ESCOs), and associated partners.

Scores are derived from our assessment of each operator’s activity level and commitment to the market during the three-year period between 2011 and 2013. The final total consolidates performance in terms of: the breadth of the services portfolio; the maturity of market presence; the geographic market reach and the financial potential of customer relationships; and partnerships.

Utilities make up a highly diverse segment with communications needs that are changing rapidly in response to external and internal pressures – despite the sector’s reputation for conservatism. Verizon, Vodafone, and Deutsche Telekom have quite different priorities in this market, as reflected in their portfolios and customer wins (see Results section).

Verizon ultimately tops the list due to: its involvement in commercial smart metering rollouts in the US; its strong claim to the managed security services market; its cloud-hosted services for smaller utilities; and the breadth of its partnerships.

Since 2011, more operators have been making public announcements about smart metering and smart grid and revealing more reference customers (see fig. 1). As of the end of 2013, 68% of the major operator groups have a presence in the utilities market, as measured by their public statements. Informa defines “major operators” according to their revenues and mobile subscriber numbers (World Telecom Financial Benchmarks 3Q13 and World Cellular Data Metrics 3Q13).

Fig. 1: Cumulative number of operators with utility market presence

Fig. 1: Cumulative number of operators with utility market presence

The correlation of announcements with public funding programs may explain a decrease in the activity in 1H13 (see fig. 2), as US funding is now largely spent. While suppliers benefit from public largesse and clear deployment targets, they are also vulnerable to political timetables and policy reversals –as was the case during 2012 and 2013 when Brazil, Germany, and Australia all scaled back their previous metering commitments.

Fig. 2: Number of operator announcements in the utility market, 1Q11-4Q13

Fig. 2: Number of operator announcements in the utility market, 1Q11-4Q13

This article has been taken from Ovum’s Knowledge Center, for more information please visit: http://ovum.com/knowledge-center. For more information contact enquiries@ovum.com

 

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