Market Sounding

Overview

Market sounding is a practical early-stage activity that tests feasibility, stimulates innovation, and helps shape a realistic metering strategy before procurement. It allows providers to explore available technologies, delivery models, and commercial options directly with suppliers.

Recent market engagements across New Zealand show a growing level of supplier interest and capability, particularly in Advanced Metering Infrastructure (AMI) and low power wide area network (LPWAN) and internet of things (IoT) technologies.. There is also increasing interest in Metering-as-a-Service (MaaS) and long-term data service models[JF1] . However, large-scale delivery capacity and system integration experience are still developing in the New Zealand context, highlighting the need for careful planning and realistic staging.

Due Diligence

Due diligence in relation to technology capability is a critical component of business case development ensuring the chosen metering solution is fit for purpose and sustainable long term. Embedding this within market sounding enables early testing of technology maturity, interoperability, and scalability. By identifying potential limitations or integration challenges upfront, councils can reduce the risk of technology lock-in or failure and make informed investment decisions that align with existing systems and future needs.

What to look for when testing the market

When engaging the market, providers should seek information on:[GU2] 

• • Technology fit and performance: proven AMI and AMR options, battery life, read frequency and storage, firmware maturity, and compatibility with local service connections and conditions.

  • Communications and data integration: interoperability with billing, GIS, and asset management systems; privacy, cyber-security and data-ownership arrangements.

  • Customer communication via CRM tools

  • Meter supply chain: manufacturer/supplier location, reputability, capacity, lead times, after sales support

  • Delivery and logistics: civil contractor experience, installation rates, quality assurance, customer interactions, and innovations.

  • Commercial and risk models: indicative pricing, bundling options, warranties, and service-based models such as MaaS or DaaS.

  • Innovation and sustainability: analytics, leak detection, customer engagement tools, and low-carbon, circular economy  and other environmental benefits.

  • Warranty and guaranty on meter technology, IoT and licences

Market sounding enables water organisations to gauge the current level of market readiness and adapt their metering strategy accordingly — aligning expectations, identifying capability gaps, and informing procurement design to support progressive development over time.

Useful resources for this stage