From TechRepublic – People have experimented with building communication networks over power lines since the 1950s. But the broadband over powerline (BPL) technology has never seriously caught on due to its low speed, low functionality, and high development cost.
In recent years, new modulation techniques supported by other technological advances have helped BPL evolve. Most services today are capable of delivering between 512 Kbps and 3 Mbps of throughput, which is comparable to most DSL offerings.
But policy disputes and expensive failures largely have been the hallmark of BPL. In 1999, for example, Nortel Networks, a telecommunications equipment maker, and the British energy company United Utilities abandoned a two-year BPL project.
Because BPL uses the radio frequency signals sent over medium and low-voltage AC power lines to connect customers to the Internet, it can cause interference with HAM radios and emergency radios. Power lines, it seems, are great and often overpowering antennas because of their length and height off the ground.
In 2004, the FCC released a set of rules governing the use of BPL to prevent interference. Most BPL equipment deployed today keeps to these limits. “I think the issue of interference has been a little overblown,” said Bob Gerardi, manager of power line communications for Duke Power, based in Charlotte, N.C. “Some of the first-generation equipment had some problems, but the latest technology adjusts the power levels to avoid any interference.”
With many of the technical issues ironed out, BPL is slowly getting deployed. More than 50 utilities across the country are looking into it. Duke Power, along with Progress Energy in Raleigh, N.C, and Consolidated Edison in New York, is one of three power companies in trials with EarthLink.
Duke began its trial with 500 homes and plans to launch a commercial service to 10,000 to 15,000 homes by the end of this year, said Gerardi. The company, which will rent access to its network to ISPs such as EarthLink, said it will be able to handle high-speed data services at 512 Kbps to 5 Mbps, along with voice-over IP services. The cost of the service will likely be about $30 a month. “The feedback we have gotten from customers is that they want choice,” said Gerardi. “They are happy that Duke Power is pursuing this technology, and we feel an obligation to our customers to vet the opportunity because of the potential benefits.”
But some analysts say it will be difficult for BPL to make any significant gains against the cable and phone companies, which have a big lead both in terms of subscribers and mind share. Jim Penhune, an analyst with Strategy Analytics said, “The big problem for power companies is not the technology, but the timing … The more mature the market, the harder it is for new entrants to break in.”
The power companies are also not in a great position to bundle their services. Cable operators and phone companies are going after the “triple play” market, which includes a package of telephony, television, and high-speed data services. While it’s not inconceivable that power companies will try to bundle other services with their broadband access, critics say it’ll be a stretch.
“Power companies make the Bells look like fast-paced innovators when it comes to launching into new businesses,” said Penhune. “I don’t see them as particularly nimble.”
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.