Telecommunication companies (telcos) are increasingly entering the energy market, viewing it as an opportunity to diversify their product and service portfolio into "smart" energy. This poses a potential threat to utilities companies, who need to reconsider their traditional business models and defend their established position against these new market entrants. Utilities should carefully assess their strategic options and decide whether to protect their electricity value chain against telcos, pursue cooperation and collaboration, or ignore them. Many telcos have already initiated "smart energy" pilot projects, and some are even in the process of developing full-scale offerings.
