Bach Seat

A NetworkWorld article proves that where there is money to be taken from the Federal Government, Never Say Never Again. According to the article, IBM (IBM) has started building out broadband over powerline (BPL) networks. The company says BPL could offer broadband connectivity to 200,000 people living in rural areas.

IBM is building out the Broadband over Powerline networks as part of a $9.6 million deal with International Broadband Electric Communications (IBEC). In 2008, IBM inked a deal with the Alabama-based broadband provider to expand broadband access to people living in rural areas. The companies plan to deploy BPL networks to serve areas that only have access to dial-up services. The BPL will be delivered through seven electric cooperatives in Virginia, Michigan, Alabama, and Indiana. Once working, IBEC will serve as the cooperatives’ official ISP.

Broadband over Powerline in Michigan

Bob Hance, CEO of Michigan-based Midwest Energy Cooperative, says his company decided to take part in the BPL network program after a customer survey. The survey results, Mr. Hance says, were overwhelmingly in favor of signing up for the broadband program. Within a week, the cooperative had a waiting list of 4,000 customers practically pleading for service. “We were amazed by the responses to the survey — thousands of letters from citizens of our community expressing their need for broadband in order to improve everything from childhood education to the future of their family-owned small businesses,” said Mr. Hance.

“We shared nearly 600 of these letters with local legislators after we realized none of the major service providers were going to answer their calls for help. Thanks to the help of those legislators, IBM and IBEC were able to access the resources needed to help our community. In less than two weeks, we’ve already deployed 400 live miles with broadband access, or nearly 4,000 homes.” according to a 02-19-09 press release from IBM and IBEC.

Electric companies’ benefits

IBM says in addition to bringing broadband connectivity to under-served areas, the new BPL connectivity will benefit electric companies. The BPL rollout will increase electric companies’ ability to monitor, manage and control the reliability of their electrical grids. Currently, electric cooperatives serve roughly 12% of the population in the United States and provide about 45% of the electrical grid. The give-away American Recovery and Reinvestment Act of 2009 include $11 billion to be spent on “smart grid” systems to monitor and manage the nation’s electrical network.

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Of course, I may be overly cynical if I question the timing of the IBM announcement. It happened just 24 hours after the $787 billion give-away American Recovery and Reinvestment Act of 2009 was signed by President Obama. In case you didn’t find the five pages entitled Division B— Title VI–Broadband Technology Opportunities Program (pages 398-402 of 407 pages) they authorize the $7.2 billion to give-away stimulate the expansion of broadband networks into rural and underdeveloped areas in the country.

BPL so far has not caught on as a broadband technology in the United States. As of May 2008, there were only 4,776 people in the United States subscribed to broadband over powerline.

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.