Market Overview

Navigant Research Report Shows Adopting a Fiber Optic Backbone Is a Strategic Imperative for Utilities' Long-term Success

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Utilities and service providers must be proactive in developing
future-proof fiber network strategies

A new report from Navigant
Research
examines the revenue streams that private fiber optic
networks can offer utilities and how smart grid networks and
applications can be optimized.

As the energy economy shifts to a more distributed, competitive model,
utility investment in fiber optic networks is growing. Smart grid
investments and applications will be optimized due to access to high
capacity fiber networks, and there will be many opportunities for new
revenue generation. Click
to tweet
: According to a new report from @NavigantRSRCH,
fiber optic networking through a utility's territory is a strategic
imperative for long-term success.

"Utilities that make calculated investments in fiber optic networking
today, as well as tactical partnerships across and around their
operating territories, stand to be well-positioned as the energy economy
shifts to a more distributed, competitive model," says Richelle Elberg,
principal research analyst with Navigant Research. "Utilities can use
their existing infrastructure and rights of way to economically deploy
fiber capacity and capitalize on it via wholesale leasing or even retail
broadband service offerings."

According to the report, utilities should not rule out fiber networks
based on cost alone. Instead, Navigant Research recommends utilities be
proactive in developing a future-proof, fiber networking strategy by
forming partnerships with neighboring utilities or telephone companies,
considering a retail broadband strategy, and preparing for competition
from incumbent providers.

This report, Building
the Fiber Backbone for Utility Needs Today and Tomorrow
,
provides an overview of why utilities should carefully consider building
a private fiber network—or leasing local capacity—despite its relatively
high costs. It describes the multiple revenue streams that a private
fiber network can enable and how smart grid networks and applications
can be optimized. Cost estimates for various types of installations are
provided. The report also describes the utelco business model and
includes case studies of various utility fiber projects. Finally,
recommendations for utilities evaluating fiber optic networks and their
use cases are included. An Executive Summary of the report is available
for free download on the Navigant
Research website
.

About Navigant

Navigant Research, the dedicated research arm of Navigant, provides
market research and benchmarking services for rapidly changing and often
highly regulated industries. In the energy sector, Navigant Research
focuses on in-depth analysis and reporting about global clean technology
markets. The team's research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of the
Energy Technologies, Utility Transformations, Transportation
Efficiencies, and Buildings Innovations sectors. Additional information
about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant Consulting, Inc. is a specialized, global professional services
firm that helps clients take control of their future. Navigant's
professionals apply deep industry knowledge, substantive technical
expertise, and an enterprising approach to help clients build, manage
and/or protect their business interests. With a focus on markets and
clients facing transformational change and significant regulatory or
legal pressures, the Firm primarily serves clients in the healthcare,
energy and financial services industries. Across a range of advisory,
consulting, outsourcing, and technology/analytics services, Navigant's
practitioners bring sharp insight that pinpoints opportunities and
delivers powerful results. More information about Navigant can be found
at navigant.com.

* The information contained in this press release concerning the
report,
Building the Fiber Backbone for Utility Needs Today and
Tomorrow, is a summary and reflects Navigant Research's current
expectations based on market data and trend analysis. Market predictions
and expectations are inherently uncertain and actual results may differ
materially from those contained in this press release or the report.
Please refer to the full report for a complete understanding of the
assumptions underlying the report's conclusions and the methodologies
used to create the report. Neither Navigant Research nor Navigant
undertakes any obligation to update any of the information contained in
this press release or the report.

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