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PCCA Journal|1
st
Quarter 2010
18
will not occur without governmental impact, however,
as stimulus packages bolster Asian-Pacific communica-
tions firms thereby increasing their ability to compete
in North America. Exhibit 9 illustrates the United
States’ lackluster performance in linking the country
wirelessly, with only one city making DiscoveryTech’s
“Top 10 Wireless Cities.” The list was compiled by sur-
veying attendees at the 2008 International Summit for
Community Wireless Networks.
As more funding continues to encourage smart grid
build out, competition for the communications aspect
of these projects will increase. Major defense contrac-
tors are leveraging their experience in setting up secure
military communications to provide similar services for
domestic utilities. Last summer, for example, Southern
California Edison named Boeing a “security partner”
on a $62 million project to connect a 32 MW energy
storage facility to the grid. Lockheed Martin, too, is
involved with eight utilities positioning themselves for
DOE funds. In particular, they are chasing a $150 mil-
lion project proposed by AEP and a $38 million pilot
project by PPL Electric Utilities in Harrisburg, Pa.
20
Two firms sure to make headlines for their ambitious
infrastructure upgrades in 2010 are Verizon and Clear-
wire. This year Verizon will complete the first phase
of its massive system upgrade to FiOS, and Broad-
bandDSLReports.comsaid there may be a delay before
the next phase of construction begins. Karl Bode, a
frequent writer and blogger on broadband topics,
explained, “We’re seeing every indication that Verizon
wants to pause and try to ramp up subscriber uptake
in the areas they’ve deployed to before building out
further.”
21
Over the past five years Verizon has invested more
than $17 billion in its communications grid. The
mobile WiMax firm Clearwire LLC may be even more
ambitious than Verizon in 2010, with the goal of 120
million users by year end. This will require quadru-
pling its current footprint. Clearwire CTO John Saw
said, “We just raised another $2.8 billion, and I’m go-
ing to spend all of it.”
22
Conclusion
Your view of the power and communication construc-
tion market depends on two characteristics: where
you sit geographically and your ability to understand
what energy asset owners and operators and cable and
telecom system operators will need. Economic condi-
tions are improving and financial constraints are eas-
ing, but the uncertainty of governmental influence is
raising the risks and challenges in this market. Owners
of energy and communications infrastructure will tend
to be more conservative and focused in their spending
habits over the next two years, while designers and
contractors will need to have clarity about the direc-
tion, velocity, and behavior of the markets they serve.
One size will not fit all in the power and communica-
tion markets over the next two to three years, and FMI
encourages firms to take the time to understand the
dynamics of governmental oversight and regulation,
funding availability, and economic demand factors on
the markets they serve.
Unlike many private companies, utility, cable, and
telecom owners have long been guided by govern-
Market Forecast
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Continued on page 20