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Broadband Over Power Lines: Ready For A Big Breakthrough?

Broadband over power lines (BPL), which was first touted in the late 1990s as a way to deliver high-speed communications to homeowners and businesses, is finally becoming a reality as pilots and tests abound. And firms, including Google, smell broadband gold, and are pouring money into the new technology.

According to Steve Bridges, vice president of Aon Technology and Professional Risk Group, Chicago, Ill., broadband over power lines revenue growth has been predicted to increase from $57 million in 2004 to $4.4 billion in 2011. In addition, sensing the promise of the technology, a number of large technology companies, including Google, IBM and Motorola, have decided to heavily invest in BPL service. Notably, Google, Hearst Corp. and Goldman Sachs have recently made a combined capital investment of $100 million in Current Communications, a broadband over power lines service provider.

Despite those investments, the promise of several years ago of a technology that would compete head-to-head with cable and DSL broadband services isn't likely to ever come to fruition, according to technology experts. It's not that broadband over power lines doesn't have a spot in the broadband communications marketplace. It's just that the spot is, and will likely, remain small, according to many technology experts, though others see promise in the technology (see sidebar).

In the last five-plus years, cable and DSL providers have spent countless dollars investing in their technologies and have upgraded both the speeds that can be provided and the accessibility of their technologies, according to Young-Sae Song, director of corporate marketing for Redback Networks, San Jose, Calif. In addition to those seasoned technologies, broadband over power lines would also need to compete with WiMax, which is also starting to compete in the high-speed communications market.

"I wouldn't even call [broadband over power lines] a niche," Song says. "For most, it would be the second or third choice behind cable and DSL."

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