Employing proper communication system is one of the most challenging tasks when implementing smart grid applications. Many utility personnel may lack expertise in communication engineering, and have insufficient understanding of strengths and weaknesses of different communication options. In addition, there is no formal decision process for utilities to choose the best communication option for specific applications. Due to these reasons, the current communication implementation process is time-consuming and inefficient. This paper studies the attributes of different communication types available to utilities, and provides detailed illustration of advantages and disadvantages of each communication type. Different smart grid applications may require communication options with different characteristics. Therefore, common smart grid applications along with their best communication types are also discussed. A possible decision process is proposed as a guidance for choosing communication options. Following this process, the implementation of communication technologies could be accelerated and improved.