Frost & Sullivan, San Antonio Melina Gonzalez, 210-247-2440 melina.gonzalez@frost.com or Kristina Menzefricke, +44 (0) 20-7343- 8376 (Europe) kmenzefricke@frost.com or Donna Jeremiah, +603 6304- 5832 (APAC) djeremiah@frost.com www.frost.com

Driven by changing end-user needs, many new participants in the utility meter market are focusing on product innovation to capture market share. These emerging competitors have already upset the pricing equilibrium that the established metering companies have enjoyed for decades.

Communications-enabled solid-state power meters already compete with the electromechanical meters that well-established incumbents offer with added communications modules.

New analysis from Frost & Sullivan (http:// www.energy.frost.com), North American Utility Meter Market, reveals that this market generated revenue totaling $959.5 billion in 2003. Total market revenue expects to reach $1,249.0 billion in 2010.

If you are interested in a virtual brochure, which provides manufactures, end-users and other industry participants an overview of the latest analysis of the North American Utility Meter Market, then send an e-mail to Melina Gonzalez - Corporate Communications at melina.gonzalez@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.

"The uncertain success of the newer metering technologies makes large volume deployments an operational and financial risk for utilities, but start-up vendors are eagerly investing large sums on finding the next killer metering/distribution application," observes Frost & Sullivan Research Analyst Ramesh K.

Market entrants are aware of the fact that the size and strength of meter incumbents pose significant barriers to market entry and hence, are working on novel strategies. Low-cost production, which is a strong competitive leveraging tool, is one of them.

Emerging meter companies are using fast-moving and highly calibrated marketing efforts to aggressively target new utility service providers, such as energy services, energy management services, and aggregator markets that expect low prices and the latest technology.

In a technologically mature market, meter communication is the only dynamic factor. Therefore, the integration of communication modules is likely to continue to be the main area of innovation.

The growing awareness of the advantages of automated meter reading (AMR) communication programs is encouraging deployment of new meters with AMR modules. This implies better average revenue per meter for vendors since AMR-compatible meters cost more.

Although meter companies are developing products adaptable to AMR technologies, AMR companies are starting to acquire meter companies and embed their AMR modules to compete in the meter market.

"AMR companies are expected to gradually dominate the meter companies in the market -- a domination equivalent to that of software over hardware in the IT industry," observes Ramesh.

Meter companies need to work toward becoming full-fledged billing solutions providers to retain their demanding customers. Among the gas, electric and water segments, the electricity meter market expects to be the bellwether of technological changes.

The North American Utility Meter Market, a part of the Transmission, Distribution and Metering Systems and Services subscription, offers insights into the markets for water, gas, and electric utility meters. The study offers key market drivers and restraints, in-depth market analysis, competitive analysis, and strategies employed by both incumbents and emerging participants. Executive summaries and interviews are available to the press.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams, to deliver market insights, and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff spans the globe with offices in every major country.

North American Utility Meter Market

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The following is a key list of industry participants: Actaris Metering Systems; AMCO Water Metering Systems; American Meter Co.; Badger Meter Inc.; Canadian Meter Co. Inc.; Echeleon Corp.; Ekstrom Industries Inc.; Elster Electricity LLC; Elster-AMCO Group; E-MON L.P.; General Electric Co.; Hersey Meters; Hialeah Meter Co.; Integrated Metering Systems Inc.; Intellimeter Canada Inc.; Invensys; Itron Inc.; Landis + Gyr; Master Meter Inc.; McCrometer; Meter Smart; Metron-Farnier LLC; National Meter; Neptune Technology Group Inc.; Osaki Meter Sales Inc.; Power Measurement; Quadlogic Controls Corp.; Silver Spring Networks; TransData

Keywords in this release: utility meters, North America, solid- state meters, water meters, gas meters, electric meters, communications modules, electromechanical meters, metering technologies, automated meter reading, AMR, research, information, market, trends, technology, service, forecast