Former Silver Spring Networks CEO Bets on WiMAX

Ray Bell, former CEO of Silver Spring Networks, thinks he has an answer to the “last mile” communications question for the Smart Grid: WiMAX.  His new company, Grid Net, is solely focused on delivering open-standards based communication for smart meters via WiMAX.  The standard, based on IEEE 802.16, has been expanded into many urban areas by Clearwire and a handful of other providers.  Some cell phone networks have also begun picking up the standard as a way to expand high-speed Internet access.  Ray Bell believes that the cost of WiMAX chips could fall from $36 currently to $12 in a year and $6 in 18 months.

 

The standard is not without problems, however, as ranges are limited (up to 50 km) even with high-infrastructure investments.  Speeds are also limited, and drop off with range.  Most WiMAX networks today are limited to 1.5 Mbps, and none have shown over 3 Mbps service.  While speeds this high may not be necessary for reading meters, it weighs more heavily on broader adoption of the standard and the expansion of the infrastructure.

 

Although WiMAX holds some desirable characteristics, coupling a Smart Grid company with WiMAX presents an enormous technology risk.  Consider, for example, the fact that Clearwire was the target of a class-action lawsuit alleging that it provided “shoddy service,” according to a Consumer Affairs story.

 

Even Clearwire’s own site shows it has yet to expand service to more than one third of the states.  It is hard to tell whether this is due to poor execution or fundamentally flawed technology.

 

Utilities may be reluctant to invest in smart meters that rely on such an unproven standard. They may instead want to look to more established means such as cellular networks.

 

Full disclosure:  Silver Spring Networks is a sponsor of Smart Grid News.

   Read the Reuters article on Ray Bell and Grid Net

   Grid Net Web site