Google, Goldman, and Hearst invest in broadband over powerline (BPL) Internet company Current Communications Group. The firm provides Web access over electrical power lines and said it would use the financing to accelerate its deployment of voice, video, and data services in domestic and global markets. The company declined to disclose the financial terms of the investment, though the Wall Street Journal reported that it approached $100 million.
Current’s service is available primarily in Cincinnati, Ohio, through a partnership with Cinergy Corporation with smaller deployments in Maryland and Hawaii.
Is BPL ready to grow
“Clearly the technology is ready to be pushed into new markets and we are spending a great deal of our time trying to do that,” said Scott Bruce, managing director of Current and its major backer, Liberty Associated Partners. “It’s already commercial and ready for prime time.”
The technology has not gained significant traction yet among consumers, though, as it is not widely offered. But Bruce said Google’s investment in Germantown, Maryland-based Current fit right in with the Internet search giant’s philosophy of spreading Internet access.
“Our attraction for having a relationship with Google is sort of obvious. They’re interested in the proliferation of broadband generally,” he said.
Google said in a statement it was “very excited to have a relationship with Current Communications Group to help promote better access to the Internet.” The company already has a number of deals with broadband providers for various content and search services, Comcast among them.
A top Hearst executive said the investment fit in with the media company’s distribution strategy. “We have an interest in delivering our content through the widest possible pipes,” said Ken Bronfin, president of interactive media for Hearst. “The idea of creating another delivery mechanism to the home, especially in under-served areas, is attractive.”
A spokesman for Goldman, Sachs, and Co. confirmed the investment but declined further comment.
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.