TMCnet News
Study Argues Market Is Ready for Broadband over Power Lines (BPL)By Susan J. Campbell
The reigning power of DSL and cable is being challenged by Broadband over Power Lines (BPL) for broadband internet access. After ten years in development, BPL is finally making some way in the global market, according to the findings from a new study, “Broadband over Power Lines: Challenging Exiting Broadband Dynamics,” published by visiongain, an industry research company.
Known as the ‘third wire’ for delivering broadband communications to users, BPL offers technology that will not only stir up the competitive market, but also offers broadband access that does not require the creation of new infrastructure. The technology injects radio frequency into power lines which currently reach nearly every residence and business in the United States. The feasibility of BPL technology has been confirmed in over 100 trials in 40 different countries since 2001. The United States currently has at least 10,000 commercial users subscribing in trials and pilot projects. The EU contains commercial BPL networks in Germany, Spain and Australia.
Governments and utilities alike are touting the benefits of BPL across the board from the efficient usage of the current electrical grid to better management of power distribution operations to revenue opportunities. However, there may not yet be sufficient proof that BPL can be a strong competitor against DSL and cable.
The progress of BPL has been somewhat vulnerable due to concerns over bandwidth and radio interference and the lack of standards necessary to move the technology forward. The power lines used in this technology were not designed to transmit radio frequency and therefore the problem of ‘leakage’ exists where energy is leaking and causing noise interference.
Recent developments in the industry have been addressing these issues, moving toward making BPL a practical alternative to DSL and cable. The FCC does limit the amount of ‘leakage’ any carrier can have on radio lines and BPL providers will be required to detect and contain any harmful interferences.
Rural areas could see particular benefits from BPL. The use of electric power lines to provide access to the internet will deliver service to those who currently have no other option than dial-up. However, in order to enable a BPL system, significant infrastructure costs still exist and without government subsidy, BPL access in rural areas may not be economically possible.
For urban areas, BPL must pay close attention to timing, for the market is extremely competitive. Key players already have a firm hold on the market and new generation technology offerings like triple play services are becoming available.
It is indeed true that in developed countries, the electrical grids are already in existence and could be utilized for BPL service. This does not mean that a transition to BPL would come without problems. There is yet to be complete standardization for the industry and the technology is still new enough that it is possible all obstacles to entry have not yet been identified.
Visiongain examined BPL in “Broadband over Powel line: Challenging Existing Broadband Dynamics” as a technology form and as a competitive entry into the broadband market. The report provides an analysis of the issues surrounding BPL as well as profiles the main players and the current trials in this market.
Based in London, UK, visiongain produces business-to-business conferences, newsletters, management reports and e-zines focusing on Telecoms, Pharmaceutical and Defense sectors. The reports published by visiongain are produced by in-house analysts.
With the dominance of DSL and cable in the broadband industry, the market could experience a healthy upset by the introduction of a feasible BPL system. It stands to reason that the utilization of a current system to provide enhanced services to customers all over the country would appeal to the masses. However, until BPL can overcome its current obstacles to market entry, it is unlikely that this service will be able to offer comparable services at competitive prices.
Susan J. Campbell is a contributing writer for TMCnet and has also written for eastbiz.com.
|