Utilities turn to IBM for BPL solution
Feb 25, 2009 12:48 PM, By Lynnette Luna
Just when it appeared broadband-over-powerline
(BPL) technology was going to die off, IBM and
rural Internet service provider (ISP)
International Broadband Electric
Communicationswith help from a $9.6-million cash
infusion from IBM and $70 million in government
loansare deploying BPL networks for almost
200,000 rural customers served by seven
electrical cooperatives in Alabama, Indiana, Michigan and Virginia.
The move comes months after two of BPLs highest
profile deployments died out and as many BPL
vendors have begun focusing on smart electrical
networks rather than consumer broadband delivery.
The technology, which modifies radio signals to
transmit voice and Internet data over electric
utility power lines, was extremely hyped early
this decade, when it was billed as a way for
power companies to become the third alternative
in the broadband market, competing against cable
and DSL operators in urban areas.
But the technology has been slow to take off, as
technical limitations and interference problems
with ham radios and local emergency radios kept
it from being adopted widespread. Moreover, power
companies realized they just couldnt compete
with cable and high-speed telco offerings in urban areas.
BPL now has improved from a technical standpoint
and, according to Ray Blair, advanced networking
executive with IBMs Global Technology Services.
BPL has found its niche in the rural market,
where access customers have no wireline broadband alternatives.
Another important niche has to do with the need
for utilities to incorporate intelligent-grid
capabilities, such as smart metering and energy-outage monitoring.
The intelligent grid, by nature, is filled by a
lot of devices that need to communicate with each
other back to a centralized location, and that
drives a lot of bandwidtha lot more than what
utilities can handle today, Blair said.
I, for one, will be waiting to see how IBEC and
IBM can make BPL a profitable technology. Last
May, DirecTV and Current Communications sold a
flagship BPL deployment in Dallas to the local
utility after they couldnt make a go of it. The
utility is using the network for smart-grid
monitoring only. In this case, the combination of
using the technology as a broadband offering and
for the electric cooperatives smart grids increases the chances of success.
Still, Blair concedes that the cost of such
networks vary from situation to situation. BPL
deployments typically cost half of wireless
network deployments, but the ongoing costs might
not be advantageous. Its more than just the
cost of the network. Operational expenditure is
the key piece to understand. In some cases, BPL
looks good paper, but on the opex side, it might
not be so good, and wireless might look better.
So, the business case for BPL isnt
straightforward, and it appears companies looking
to utilize the technology must do some
significant vetting and perhaps look outside the
box to find more ways to recoup their
investments. According to Blair, that might
include striking a deal with the local
municipality to backhaul surveillance cameras or read water meters.