Most agree that the competition between the cable operators / MSO’s vs. the wireless and wireline carriers is what truly sparked mass service creation, and not deregulation in itself. Cable companies offering phone service and phone companies offering TV. The iPhone and other devices have certainly highlighted the need for service differentiation.

If history is a guide, and if there are strong similarities between the Communications and Utility industries, the “simple” act of providing electricity, water, etc. (compared to phone or TV), even with competition, in itself may not lead to any major changes. The little guys will lack the resources to compete and may go the way of the CLEC’s. The migration from proprietary protocols to Internet Protocol, and the institution of smart technologies will be costly, just like the carriers migration from copper / TDM to fiber and IP.

Ultimately, I believe utilities of all sizes will get smarter, but I don’t believe that deregulation is causing them concern with respect to competition. Now, if AT&T, Comcast, etc. offered electricity, well then that would be a different story. Nonetheless, depending upon which utilities you speak with, as you pointed out, their views do differ greatly.

Tom