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BPL Automation Benefits Will Drive Rural Deployment, Officials Say

Utilities adopting broadband over power line (BPL) technology mainly for internal uses will be driven to deploy in more rural areas because the automation benefits are greater there, speakers said Wed. on a BPL audio conference sponsored by the United Power Line Council (UPLC). State regulators have voiced skepticism about BPL’s touted potential to fill the broadband void in rural and unserved areas.

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Initial cost to deploy, customer density on each transformer, proximity to fiber and power line location - overhead or underground - will figure in BPL deployments, said Robert Gerardi, BPL program mgr. for Duke Power, which has about 2 million electric customers in the Carolinas. Another key is utility benefits, he added. Duke, now conducting a trial for 500 households and small businesses, expects to start commercial operations this year covering about 15,000 homes. He said the firm had received “tremendous” feedback from trial customers.

Gerardi said Duke would build out and operate the BPL network but collaborate with ISPs for service to customers. Duke revenue will come from access fees to service providers and from operational efficiencies in its core service. Besides high-speed and other advanced telecom services, the utility will differentiate itself with enhanced offerings such as security lighting services and water meter reading. Duke expects to implement lighting systems that can be controlled and monitored through BPL. He said the company wouldn’t have exclusive contracts with ISPs.

Telkonet, which provides broadband services to hotels and multiple dwelling units, strongly backs BPL and has invested in the technology, said Exec. Vp Al Diehl. He said the firm provided service using a device able to accept signals from many sources, including BPL, and using HomePlug technology to provide data into the home.

Meanwhile, according to a new projection worldwide BPL revenue will grow from $57.1 million in 2004 to $4.4 billion in 2011. Despite hiccups, the technology has matured, said Naqi Jaffery, pres. of Telecom Trends International, which conducted the study. In the U.S., which is behind Europe and the Asia-Pacific region in rollouts, there are more than 20 trials and commercial deployments, he said. Spain, France, Germany and Sweden are at the forefront of BPL rollouts in Europe. In Hong Kong, he said, a BPL commercial deployment to 50,000 homes is under way.

In the U.S., BPL has hurdled many obstacles, including interference, Jaffery said. More than pricing, data rates give BPL an edge over DSL and cable, he said. Leading BPL chipset provider DS-2 of Spain is marketing chipsets providing end-users rates of 40-50 Mbps, much higher than DSL and cable speeds, he said. U.S. deployments were slower due to grid configuration, which lets fewer households be connected to a transformer than in Europe, he said: “That is one of the reasons why we are behind Europe.” Jaffery said the lack of standards impeded larger utility acceptance of BPL.

Standards could cut utilities’ costs, but many firms with proprietary technologies see no need for them, he added. However, standardization efforts have gained traction this year, especially in Europe under a consortium called OPERA, he said. In the U.S., HomePlug and an industry alliance are pursuing industry standards. However, industry may end up with multiple standards. Chipmakers surveyed for the study said they would develop chips that can support multiple standards, Jaffery said. - - Dinesh Kumar