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The effectiveness of various functions in a smart distribution grid relies on a reliable communication system. These functions are normally developed based on specific automation schemes. The majority of automated fault-management schemes (AFMSs) requires a dependable communication system to accomplish their intended functions. In a smart distribution grid, the AFMSs are responsible for automatic fault detection, location, isolation, and service restoration activities. Failure to communicate among various communicating devices involved in the AFMS may have a considerable impact on the reliability of electricity service delivered to the customers. This paper aims to quantitatively evaluate the reliability impact of failure to communicate in the AFMS. A highly loaded urban distribution network equipped with AFMS is utilized for directing the quantitative reliability case studies. The study results show that the service reliability can be significantly affected if the communication system fails to operate successfully.