Telco and Utility: Friend or Foe?
by Matthias von Bechtolsheim, Ansgar Schlautmann
How telecommunication companies and utilities fight to capture a share in smart energy

Telecommunications companies (telcos) consider this an excellent opportunity to diversify their own product and service portfolio into “smart” energy. This poses a potential threat to utilities companies, who need to reconsider their traditional business models and defend their established position against these new market entrants, and avoid becoming mere electricity producers in a market with higher value opportunities. How can utilities respond? Should they protect their electricity value chain against telcos, or should they pursue a certain degree of cooperation and collaboration, or should they ignore? In order to stay competitive on the future energy market, utilities need to carefully assess their strategic options and decide which path to follow.