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Reality Check | Ephraim Schwartz » Direct TV, Current deal will open door for broadband via utilities

August 15, 2007 | Comments: (0)

Direct TV, Current deal will open door for broadband via utilities

The news that Direct TV signed a deal with the Current Group to deliver broadband over power lines opens up a fascinating new chapter in last-mile solutions and will certainly ramp up the competitive landscape.

The deal between Current Group and Direct TV is only the tip of the iceberg. Yes, now the satellite company can not only offer VoIP and other broadband services, but look to all of the utility companies getting into the act as well.

This would be a natural next step. The utilities already own the customer relationship, which includes billing, metering, and monitoring. What could be more of a natural fit than to add a second line to your monthly bill for data?

The additional cost to the utilities may even been so negligible that the pricing will be extremely competitive. The utilities may decide it is better to have a low initial fee and make their money on adding additional services.

In one fell swoop, the utilities have the potential to grab millions of customers away not only from cable providers but also from the carriers as VoIP services become more ubiquitous and accepted by the public.

Of course, the use of power lines for data is not new. I wrote about a large department store chain that used the technology almost 10 years ago.

This retailer used rolling cash registers during the Christmas rush to reduce the long lines at check out. Each cash register cart was simply plugged into the power line, which put the register on the company network.

The real boost, pardon the pun, to the technology came back in 2004 when the FCC approved the use of broadband over power lines services and technology.

I'm excited by the idea that the Current-Direct TV deal will help to renew interest in broadband over power-line technology, which in turn can create new services and lower prices for all of us.

Posted by Ephraim Schwartz on August 15, 2007 12:25 PM


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Most of the BPL ( broadband over power lines ) systems cause a lot of radio interference to other licensed radio services. This problem is currently being litigated with the FCC in the Courts.

"Widespread deployment" of BPL is a long way off and may never happen.

Posted by: Andy Wallace at August 22, 2007 11:15 AM

The business model for BOPL [broadband over power lines] requires that it have dense subscribership, like in an urban area. That means it has to compete with DSL, cable, wireless providers.
The place it makes sense for subscribers is the rural areas, that are currently underserved.
But that's not where the money is.

And, interference to 2-way radio services is a very real probability, as seen by the test systems put out across the country.
There are several other countries across the world that have looked at the technology and rejected it due to those concerns.
And the more systems that are implemented, the stronger and farther away the interference will be heard. The frequencies proposed are capable of being heard around the world, interfering with communications in Canada, Europe and possibly as far as Australia.

BOPL is a bad idea that needs to die a quick and quiet death.

Posted by: Walter at August 22, 2007 11:27 AM

The previous respondants seem to have an agenda in this matter.
Density? BS. Every house in town is wired, how much "density" do you want?
Interference? Rubbish. If you're worried, start with the *existing interference you get every time you drive past a radio station, or everytime the ham operator down the street pops up on your tv, or one souped-up trucker talks to another! Thats real, actual, and happens every day.

Posted by: Rich at August 26, 2007 06:22 AM

An excellent resource for satellite TV is at Direct TV satellite, Dish Network satellite
http://www.1-satellite-tv-facts.com

Posted by: Lawrence at January 28, 2008 06:45 AM

An excellent resource for satellite TV is at Direct TV satellite, Dish Network satellite
http://www.1-satellite-tv-facts.com

Posted by: Lawrence at January 28, 2008 06:47 AM

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