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Quick Take: At first glance, another product announcement, this one bringing competition to Ruggedcom, Cisco, SmartSync (Itron) and the others who sell grid routers. Note that the company emphasizes that this product is part of a larger strategy they call "Dynamic Communications for Smart Grid." There's more to come, obviously.

And note the emphasis on one complete, end-to-end network. Silver Spring Networks and Cisco have been telling a similar story for years. The Alcatel-Lucent entry brings competition, but also further validation. We are heading toward the day when utilities won't have to have the four or six or 10 separate networks they maintain now, but only one.

Finally, notice the mention of transportation and the public sector. As I am learning in my role as the Chairman of the Smart Cities Council, there is growing realization that different responsibility areas – power, water, transportation, emergency services – could and should be sharing infrastructure such as communications networks. - By Jesse Berst

The new Internet routing technology "will give utilities the ability to deploy a single, secure, reliable communications network throughout the grid, supporting smarter power management to create dramatic operational and cost efficiencies."

The company says many utilities want to upgrade to new Internet Protocol/MultiProtocol Label Switching (IP/MPLS) solutions to upgrade their communications networks because of its greater speeds, bandwidth, reliability and service capabilities to meet the increasing data and two-way communications needs of more intelligent and sophisticated smart  grid power distribution systems. But previously, IP/MPLS has only been used in the transmission and sub-transmission segments of the grid. Alcatel-Lucent's two new additions to its 7705 Service Aggregation Routers (SARS) are designed to be used in the distribution and field area network, that part of the network that delivers power to utility residential and business customers.

The result is that the expanded portfolio provides the benefits of IP/MPLS throughout all of the communications network. And because its Service Aggregation Routers are hardened for deployment in harsh environments and meet strict cybersecurity requirements, they also are appropriate for use in transportation and several government sectors like public safety.

Lynn Hunt, global VP for Utility Solutions at Alcatel-Lucent said "Alcatel-Lucent's expanded Service Aggregation Portfolio, together with our Service Routers and Network Management portfolio, allow utilities to deploy a converged IP/MPLS based smart grid communications network. In doing so, we can help utilities save time and costs and allow them to take advantage of new revenue opportunities, for example, in offering telecom services to customers over their network."

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.