Memphis utility puts $27M toward spectrum for private wireless network

Memphis Light, Gas and Water (MLGW) is spending $27 million to buy a chunk of 600MHz spectrum in the pursuit of a private wireless network for its utility operations. The company has also allocated $31 million for construction of the network, with plans to issue a request for proposal (RFP) for the project sometime this year.

“We acknowledge the substantial advantages associated with adopting this technology and plan to leverage it to fulfill all our private wireless requirements,” the utility wrote in response to questions from Light Reading.

MLGW provides electric, gas and water services to around 439,000 customers in Memphis and Shelby County, Tennessee.

“Our primary goal is to modernize the Distribution SCADA [Supervisory Control and Data Acquisition] system, improve Distribution Automation, and establish a robust backhaul communication for our existing AMI [Advanced Metering Infrastructure],” the company said of its planned private wireless network. “We envision its application across a spectrum of internal MLGW wireless needs, encompassing the monitoring of streetlights, distribution poles, transformers, water distribution pressure, gas distribution, industrial gas metering, under-the-glass metering, push-to-talk services, security cameras, workforce management, and more.”

MLGW is just the latest US utility to embark on plans to build a private wireless network for monitoring, security, communications and other applications. Other utilities engaging in similar pursuits include Xcel Energy, San Diego Gas & Electric (SDG&E), Exelon, Duke Energy, New York Power Authority (NYPA), Evergy and Portland General Electric.

Owning spectrum

As noted by spectrum-monitoring company Spektrum Metrics, MLGW filed documents with the FCC to purchase 600MHz spectrum from Charles Townsend’s Bluewater Wireless. In the filing, MLGW said it would use the spectrum “to launch a private wireless network to enhance its operations and internal communications systems.”

The company added: “Among other things, this network would enable MLGW to modernize its power grid for enhanced power distribution, which will reduce the risk and customer impact of unplanned outages and enable assignee [MLGW] to restore service to the public more efficiently.”

In response to questions from Light Reading, MLGW officials said the company considered a variety of options, including leasing spectrum from a company such as Anterix. Anterix has built a business around licensing 900MHz spectrum to utilities, but the company has hit some stumbling blocks recently.

Ultimately, MLGW decided it was important to buy its own spectrum rather than renting it from another company.

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