A new broadband technology has been gaining momentum in the global ICT environment -- known as broadband over power lines (BPL), this latest data connectivity solution utilizes an existing power grid as a telecommunications infrastructure as it were, delivering high-speed Internet access over the copper cabling which carries electricity to the customer?s premises.
BPL is an intriguing prospect, and a technology which utilities providers across the world, including Eskom SA, are looking at to expand their service offerings.
International research expert Gartner Dataquest published its report on the technology in March of this year, and its findings suggest good opportunities tempered by a cautious approach, as the technology does have its weaknesses. Business models of data connectivity providers married with utilities providers remain largely unproven, since BPL deployments remain limited, for the various reasons outlined below.
In Europe in the late 90s a number of successful BPL deployments were conducted to prove the viability of the technology in bringing broadband connectivity to the market with access to the electrical grid. While technically successful, none of these deployments successfully evolved into commercial concerns, even though at the time more conventional broadband connectivity mechanisms, like ADSL and cable, positively exploded.
Inhibitors
The availability of these competitive access networks, provided by organizations whose sole focus of operations lay in the field of Internet connectivity, was one of the primary inhibitors of successful BPL roll-out.
And now, some five years down the line, the technology has become a very late entrant into the established broadband connectivity marketplace, as a result of these delays, as well as a lack of regulatory recognition of BPL as a viable technology offering.
The beginning of this year saw the U.S. Federal Communications Commission (FCC) release a set of standards for governing the use and deployment of BPL in the overall communications landscape. A large portion of this rule set deals with concerns raised over frequency interference, as BPL operates in a frequency range from 2 to 50MHz, and runs over conventional unshielded copper power lines, therefore the potential for interference with both conventional telecommunications services and wireless connectivity solutions emerging in the marketplace is substantial.
The FCC rule set aims to address these interference concerns with new BPL equipment certification procedures, new measurement procedures for BPL-radiated emissions, and by requiring that BPL systems incorporate certain modifications in their operations to mitigate harmful interference. These modifications include a system of ?notching? transmissions, or being able to cease the broadcast of BPL signals in areas where interference with existing operators is confirmed, as well as the ability to remotely shut down any BPL units.
Even with these regulations in place, widespread deployment, in areas which could benefit from BPL, is likely to remain slow, as the technology itself still has its own inherent limitations. As a rural broadband solution, BPL is not very cost-effective: as with any other cable-based signalling solution it requires that the signal be boosted every few kilometers, due to decay over copper lines. Meanwhile, in urban areas, where the technology can be cost-effective, broadband offerings based on fixed-line or wireless infrastructures already compete for the attentions of the consumer, and are likely to continue to be the first choice for these users, based on their specific requirements.
Commenting on the recent media hype regarding using power lines for IP communications, Andy Brauer, chief technology executive for Business Connexion?s Networks Competency, says companies should wait for the ink to dry on the Convergence Bill before leaping into uncharted territory.
?Until the details of the Convergence Bill are made public, it is uncertain whether power utility companies may or may not be able to provide telecommunications services. In addition, it is unclear as to which licences they should apply for, and under which conditions these companies will be able to provide such a service,? says Brauer.
Improve core business
?Power utility companies should rather focus on improving their core business, before they explore the telecommunications market,? he adds. Power suppliers still rely on manual meter reading, for instance, when these could be done digitally and remotely.
Threats surrounding Internet over Power Cable are also numerous. Interference over the electricity line is frequent, and would become problematic if not taken care of, data delivery speeds are lower, data security will have to be invested in, and transformers are still expensive. Aside from these threats, Mother Nature also presents a problem in the form of lightning. Electricity poles are not immune to lightning strikes.
?Given all these factors, it is imperative that companies look at the business case for providing data and voice over electric lines before taking the step down a treacherous path,? he says.
The Gartner report concludes by urging utilities providers in areas where BPL makes the most sense, namely areas underserved by the telecommunications infrastructure but with access to the electricity grid, to act quickly in order to capitalize on the opportunities presented by the technology.
Should the uncertain regulatory conditions in SA continue to suppress its adoption, the window of opportunity for BPL services could well be closed as these markets become covered by new wireless access solutions -- WiMAX with its support by the industry heavyweights being the primary concern here.
Partnering with a telecommunications provider appears to be the best way to create a commercially-viable platform for providing these connectivity services, while differentiating the service by adding products and applications to complement these bundled utilities and communications offerings could open up a lucrative sector in the local market, in which BPL solutions could prove the ideal answer.