3 State Utilities May Offer Internet Via Power Lines

Oct 18 - Seattle Post - Intelligencer

Clearing the way for homes and businesses to receive high-speed Internet services through their electrical outlets, the Federal Communications Commission adopted rules this week that would enable the utility companies to offer an alternative to the broadband communications services now provided by cable and phone companies.

And at least two of Washington state's utilities are rolling out pilot projects in central and Eastern Washington or planning to. And a third, Seattle City Light, is moving in that direction.

The new broadband Internet service is more than a year away from becoming widely available. But the FCC's ruling is expected to significantly increase the level of investment and interest by the utilities, which had been stymied in previous attempts to offer new services over power lines. They reach more American homes than either telephone lines or television cables.

So far, the technology has been limited mainly to experiments around the country, although a commercial version recently became available in some communities near Cincinnati.

"Today is a banner day, and I think years from now we will look back and see it as an historical day for us," FCC Chairman Michael Powell said. "This is groundbreaking stuff."

Earlier this month, the Chelan County Public Utility District started testing a broadband power line technology in parts of Peshastin. The 60-day trial, which offers high-speed Internet service at speeds up to 900 kilobits per second, is the second test for the utility in central Washington.

Avista, the Spokane utility with 325,000 customers in Eastern Washington and northern Idaho, is trying to find a partner to help roll out the technology in a pilot program for early next year.

And Seattle City Light is exploring ways to utilize the technology.

Known as broadband over power lines, or BPL, the technology uses a special modem that plugs into electrical outlets. So far, it has been offered at speeds of 1 to 3 megabits a second, which is comparable to broadband service over cable modems or conventional phone lines - though not as fast as the 5 megabits a second achievable through the residential fiber-optic lines just now being introduced.

An obstacle to the use of power lines to carry communications traffic has been the electromagnetic interference the technology can cause to various types of radio signals. The commission ruled that it would tolerate a some radio interference in certain areas by the new service in exchange for making the broadband market more competitive.

Amateur radio operators and public safety officials had asked the commission to move slowly in the area because of the interference. The agency responded by setting up a system to monitor interference and restricting the service in areas where it could jeopardize public safety, such as areas around airports and near Coast Guard stations.

While some regulatory and technical issues remain, the technology offers enormous promise because the power grid is ubiquitous. The costs to the industry to offer the new service would be comparatively small, and the possible returns on those investments could be high.

Dave Heyamoto, marketing manager at Avista, said BPL could work well in rural areas where cable or digital subscriber line technologies are not widely available. He said many of the technological bottlenecks that held back BPL in the past have been addressed.

"Now the real question is can the business models be developed to compete profitably with other alternatives such as cable, DSL and satellite," he said.

Bill Schrier, Seattle's chief technology officer, said BPL is one of five or six high-speed Internet technologies that a recently formed telecommunications task force is considering for the city. At the task force's first meeting last week, the technology was discussed, Schrier said. While there are potential limitations in terms of speed, service and deployment, he said BPL could assist in meter reading or help spur economic development in areas such as South Lake Union. He also said it has potential advantages because "every outlet is a possible Internet access point."

The FCC's Powell said the new technology would not only offer greater competition in the broadband market, but would also allow consumers to easily create networks in their home through electrical outlets. And adding communications capabilities to power lines would permit electric companies to better manage the power grid, he said.

Powell and three other commissioners voted to approve the rules. The fifth commissioner, Michael Copps, dissented in part. He noted that the agency had pushed aside a number of vital issues for another day, including questions of whether utility companies would have to contribute to the telephone industry's universal service fund and provide access to people with disabilities, and whether measures would be put in place to ensure market competition.

"We just have to get to the big picture and confront the challenges I have mentioned if BPL is going to have a shot at realizing its full potential," Copps said. P-I reporter John Cook contributed to this report by The New York Times.