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The utility industry stands at a pivotal moment. As Advanced Metering Infrastructure (AMI) evolves toward AMI 2.0 capabilities, utilities face a crucial question: how to fully leverage mature, proven cellular technologies while preparing for what’s next.

A recent industry webinar featuring experts from Nokia, Sequans, Itron, Xcel Energy, and Anterix revealed a clear strategy: maximize LTE-M’s (Cat M1) maturity and capacity today while preparing for 5G NR eRedCap as the next evolutionary step.

The Evolution of AMI: From Billing to Grid Intelligence

AMI 2.0 represents a major shift in what a “smart meter” can do. Once designed primarily for billing and outage detection, meters are now evolving into intelligent grid-edge devices — capable of both sensing and actuating within the distribution network.

Modern meters perform high-frequency sampling (up to 32 kHz waveform data), detecting anomalies in real time and sending only short waveform snippets when something unusual occurs. This minimizes data traffic while dramatically improving fault localization and restoration speed.

The applications emerging from this evolution fall broadly into two categories:

• Client–server use cases, where enriched insights are transmitted to head-end systems such as ADMS for centralized grid optimization.
• Peer-to-peer coordination, where meters and nearby assets share information locally to manage transformer loads, phase balancing, or neighborhood-level restoration.

To make this new level of grid intelligence work at scale, utilities need no-meter-left-behind connectivity — coverage that reaches every point on the grid, and communication systems that are both resilient and future-proof. In practice, that means:

• Sub-GHz licensed spectrum with higher power options for extended reach
• Redundant communication paths
• Direct head-end visibility for real-time monitoring and control
• Quality-of-service management and multi-profile eSIM flexibility
• Sector-aware queuing at the head-end to manage traffic surges during grid events

These requirements form the technical foundation of AMI 2.0 — and they are driving the industry to extract maximum value from today’s cellular networks while preparing the ground for the next generation of cellular IoT.

The Maturity Advantage of LTE-M

LTE-M has reached a level of maturity that allows utilities to deploy at scale with confidence.

“We have multimillion deployments already in meters with LTE-M. So the ecosystem have cleaned and cleared most of the early technology risks,” noted Jan Forslow (Itron).

Among the choices available, LTE-M brings tangible advantages:

• Proven reliability – Second-generation modems are shipping in volume with well-characterized performance.
• Direct connectivity – LTE-M connects directly to the headend, avoiding proxy layers and giving utilities a higher level of device visibility.
• Balanced performance – With greater reach than Cat 1 and higher throughput than NB-IoT, LTE-M is ideal for diverse, real-time field applications.

With that, the ecosystem collaboration has been delivering new milestones for the US utility benefits:

• In 2024, Nokia, Sequans, and Anterix completed the industry’s first Band 106 data call, validating private 900 MHz (3×3 MHz) operation for utility.
• Demonstration of MFBI (Multi-Frequency Band Indicator)on Nokia equipment , enabling US Band 8 devices and new Band 106 devices to operate simultaneously, including capability to prioritize B106—protecting existing investments while enabling future upgrades.

Squeezing More Value from Today’s Technology

Utilities can still extract significant value from LTE-M by activating advanced network features already standardized, supported by Nokia and ready to be deployed:

• Release Assistance Indication: This feature allows devices to explicitly release network resources when finished transmitting, potentially doubling network capacity by eliminating unnecessary timeouts.
• Extended Transfer Block Size: Combined with higher modulation schemes in good coverage areas, this enhancement enables applications previously relegated to Wi-Fi to run efficiently on cellular networks with higher data rates than initial LTE-M deployment.
• eSIM Multi-Profile Flexibility: Embedded SIM technology with multiple profiles represents a game-changing advancement for deployment flexibility. These solutions can be configured during manufacturing and modified post-deployment, enabling utilities to seamlessly switch between public and private networks as needed.

These optimizations matter as AMI 2.0 applications generate roughly 10× more headend data than traditional AMI, driven by grid monitoring, grid management and customers engagement.

They will be demonstrated at UBBA 2025 Summit & Plugfest in Charlotte, NC, from November 4-6, 2025. 

The Spectrum Foundation for Longevity

Licensed, standardized spectrum is the cornerstone of long-term reliability.

Standardized, licensed spectrum provides the foundation for long-term utility investments. The recent standardization of Anterix 3×3 MHz spectrum for 4G (B106) and 5G (n106) represents a significant achievement. “We were able to standardize our band at 3GPP for 5G with Nokia being co-rapporteur , bringing 5G support down to 3x3MHz, which is the n106 band, as well as band 106, which is the 4G 3x3MHz,” explained Abhinay Sinai from Anterix.

Importantly, the 3GPP ecosystem is now working on eRedCap / Redcap operation within 3 MHz channels—a key step that ensures future 5G IoT devices will be supported in 900MHz licensed spectrum ecosystem.

The Nokia–Sequans–Anterix first Band 106 data call validated MFBI operation for US Band 8 and B106 co-existence —protecting existing investments while enabling future upgrades.

At the same time, Nokia is advancing standalone LTE-M operation over a dedicated 1.4 MHz carrier, eliminating the need for in-band hosting and giving operators more flexibility in how they allocate 3 MHz or 5 MHz channels.

Strategic Evolution Path: From LTE-M to eRedCap

While LTE-M serves current needs exceptionally well, the industry is preparing for the next evolutionary step. RedCap is already seeing nationwide deployment announcements from major carriers, with eRedCap expected to reach mass adoption around 2029-2030.

Jeremy Gosteau from Sequans outlined the strategic timing: “We need to continue optimizing what we have today. We need to fine tune spectrum usage network configuration to improve power efficiency, capacity, flexibility, resilience, security, redundancy. And we also need to preserve the flexibility to upgrade devices and network over time.”

The practical roadmap:

• Maximize and tune LTE-M now for power, capacity, and resilience.
• Plan for eRedCap as the lean 5G NR solution that will carry critical IoT workloads into the next decades.

eRedCap’s advantages:

• Long-term 3GPP-aligned support.
• Lower signaling overhead and efficient power consumption from the initial deployment.
• Network slicing for prioritized traffic and secure operations.
• A clean foundation for future, potentially more data-intensive applications.

Investment Protection Through Software Configurability

Perhaps most importantly for utility decision-makers, this evolution path protects existing investments. As Nokia’s Hemant Relan emphasized, network configurations supporting various technology combinations—from LTE-M to RedCap to eRedCap—are “all software configurable. There is no need to change anything related to the hardware.”

This flexibility means utilities can:

• Deploy mature LTE-M solutions immediately.
• Optimize performance through advanced features.
• Evolve to 5G technologies when business cases justify the transition.
• Maintain multiple technology variants (4G and 5G) simultaneously as needs dictate.

The Collaboration Imperative

Collaboration is the real enabler.

As Xcel Energy’s Ron Brady noted, it must be “early, frequent, and candid.” The recent Band 106 data call, MFBI validation, and joint 3GPP contributions for 3 MHz 5G NR operation exemplify this spirit—spectrum owners, infrastructure providers, chipset vendors, and utilities advancing in unison.

This collaboration must continuously address practical deployment realities:

• Device sizing and ruggedization for field environments
• Power consumption optimization for extended battery life
• Integration with existing utility infrastructure
• Regulatory compliance and certification requirements

 Conclusion: A Balanced Path Forward

The smart grid isn’t built overnight—it evolves step by step, technology by technology. The winning strategy leverages LTE-M’s proven maturity and extensive optimization opportunities while maintaining flexibility for future evolution toward eRedCap and beyond.

This approach delivers immediate value through optimized LTE-M deployments while preserving investment protection and future-proofing. For utilities balancing the need for reliable solutions today with preparation for tomorrow’s innovations, this represents the optimal path forward—extracting maximum value from mature technology while building the foundation for future grid transformation.

The message is clear: utilities don’t need to choose between today’s capabilities and tomorrow’s potential. Through strategic collaboration and thoughtful technology evolution, they can have both.