more on Utilities take pass on offering broadband

[David Farber <dave () farber net>]

Begin forwarded message:

From: Rahul Tongia <tongia () andrew cmu edu>
Date: October 29, 2004 5:27:51 PM EDT
To: dave () farber net
Subject: Re: [IP] more on Utilities take pass on offering broadband

Dave,

I've studied BPL (broadband over powerlines) for some time now (Telecom 
Policy has a publication - Can broadband over powerline carrier (PLC) 
compete? A techno-economic analysis; 28 (2004) 559?578), and I felt I 
had to comment on this.

1) Utilities do not need BPL to do smart metering and other stuff that 
can help them (and perhaps electricity consumers).  Narrowband or 
mediumband might be better suited (hundreds of kilohertz) given the 
much longer transmission distances possible.  If the goal is smart 
metering, why not utilize existing telecom where available?  25% of 
homes have broadband today, moving to 50% in some years.  Most 
substations have good data connectivity or coverage already, wired 
and/or wireless.  PLC (powerline carrier) might be good for the utility 
even, but that does not mean retail services in all places.
2) The claim that BPL is good for the rural communities doesn't add up, 
given the same distance issues.  In addition, the homes behind each 
distribution (Low-Voltage) transformer is much lower, as low as one in 
some places!  Sure you can do this, but by adding equipment (repeaters 
and concentrators).  Lower densities = more costs (same is true for 
DSL/cable, with modifications).  There is a reason traditional 
broadband isn't available in many rural areas.
3) Is BPL competitive?  I have stated that some analyses suffer from 
Parmenides Fallacy - comparing the future to the present, instead of 
alternative futures.  By the time BPL is mainstream (and in volume), 
DSL and cable will be much more entrenched (wireless may be coming), 
and be cheaper and faster.

One main question is: can BPL do anything new, different, or better?  A 
little, but not much.  It really will boil down to price-performance.  
Of course, there might be a role for those areas where the competitors 
are not there, and some semi-urban or suburban areas.  But, it will not 
be the revolution the FCC hopes it will be (nor provide the overall 
competitive force required).

Rahul

--On Friday, October 29, 2004 4:17 PM -0400 David Farber 
<dave () farber net> wrote:

> Begin forwarded message:
>
> From: Russell Nelson <nelson () crynwr com>
> Date: October 28, 2004 12:36:14 PM EDT
> To: dave () farber net
> Cc: Monty Solomon <monty () roscom com>
> Subject: Re: [IP] Utilities take pass on offering broadband
>
> For IP:
>
> > From: Monty Solomon <monty () roscom com>
> > Date: October 26, 2004 9:39:58 PM EDT
> > Subject: Utilities take pass on offering broadband
> >
> > Utilities take pass on offering broadband
> > Most firms skeptical of providing service over power lines
>
> Indeed.  Supplying Internet service to customers over power lines is
> not the purpose of BPL (Broadband over power lines).  Don't believe
> me, you can get it straight from the horse's mouth.  See below for a
> quote from the President of Con Ed.  Right now, power companies are
> literally in the dark ages.  The only way they have to find out of
> their network is functioning is by silence in their call center.  No
> news is good news.
>
> Unfortunately, that also means that they can't charge people for what
> the electricity costs them.  Some electricity is cheap, and some they
> purchase at a very dear price.  Without the ability to communicate
> those prices to their customers, they have to charge everybody the
> average price.  People who are price-sensitive and would rather only
> buy the cheap electricity have to pay more.
>
> Also, a single substation costs Con Ed a hundred million dollars.  If
> they can spend a million dollars on a BPL network to find out that
> they don't need to install one yet, or find out that they need to
> install one NOW, they come out ahead.  Sure, they can provide
> broadband to their customers, but that's just a sideshow.  They'll
> partner with an ISP like Earthlink, and make the customer provision
> Earthlink's problem.
>
> Quoting from:
>      http://biz.yahoo.com/iw/041026/074896.html
>
> Ambient Corporation, a leader in Power Line Communications (PLC)
> announced today the successful completion of its joint project with
> Consolidated Edison in the installation of a communications system in
> Con Edison's new First Avenue Steam Tunnel in Manhattan.
>
> Kevin Burke, President of Con Edison, said, "We are pleased with the
> results of the project and its cost effectiveness. This
> state-of-the-art monitoring and communications system will serve us
> well."
>
> Ambient, the first US company to incorporate the latest chipset from
> DS2 into its system, utilized DS2's second generation PLC technology,
> capable of running at speeds up to 200 Mbps, to build a multi-purpose
> communications network in an industrial environment. The network is
> utilized in Con Edison's new tunnel to monitor environmental
> conditions, the state of the steam main, and to provide telephony
> service in the tunnel utilizing the voice over IP (VoIP) technology
> provided by the DS2 chipset. This single network is a cost-effective
> solution that provides a variety of services that would traditionally
> have required multiple technologies and wiring systems.
>
> ....
>
> --
> --My blog is at angry-economist.russnelson.com  | Violence never solves
> Crynwr sells support for free software  | PGPok | problems, it just
> changes
> 521 Pleasant Valley Rd. | +1 212-202-2318 voice | them into more subtle
> Potsdam, NY 13676-3213  | FWD# 404529 via VOIP  | problems.
>
> -------------------------------------
> You are subscribed as tongia () andrew cmu edu
> To manage your subscription, go to
>   http://v2.listbox.com/member/?listname=ip
>
> Archives at:
> http://www.interesting-people.org/archives/interesting-people/


-------------------------------------
You are subscribed as interesting-people () lists elistx com
To manage your subscription, go to
 http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/