AT&T on Tuesday agreed to work with SmartSynch to connect that company's smart meter technology with the telecom giant's robust wireless network.

So-called smart grids use a variety of technologies, including smart meters, to monitor energy consumption and cut excessive energy use.

SmartSynch, a 10-year-old company based in Jackson, Mississippi, uses point-to-point communication for its smart meters, which allows for direct connectivity.

“This means fewer points of failure,” SmartSynch CEO Stephen Johnson said. “When you’re trying to get a lot of data or trying to send information, you have a closer link to the device.” 

SmartSynch’s technology does not contain a proprietary link, so a smart meter simply latches onto an existing network. Not only does this allow utilities to unleash pretty much wherever they want, but also it saves SmartSynch quite a bit of money on setup costs.

SmartSynch’s deal with AT&T adds to Mr. Johnson’s high hopes for the future of smart grids.

“Upgrading our energy infrastructure is a very important area to spend our money on,” he said.

AT&T certainly agrees, as the partnership signifies an attempt for the company to get in on the action before it grows considerably.  That will be aided in part by President Obama's smart grid funding in his stimulus bill, which allocates $4.4 billion for smart grids and $2 billion for transmission lines.

Before the AT&T deal, SmartSynch already has installed its smart meter technology at over 100 utilities throughout North America, though the utilities were commercial rather than residential.