There has been a flurry of activity in the past year in the area of broadband-over-powerline technology. BPL is about a 10-year old technology that is still in its infancy. The downturn in the energy industry in 2001 held up progress, but that's all changing now as major players are getting their feet wet in this nascent industry; even the FCC has given its blessings to continue to try it out. Pilot programs are taking place around the country. Could it be that your next network will plug into an ordinary electrical wall outlet?

BPL uses the country's existing electrical power grid to deliver high-speed broadband communications to consumers. If the technology can overcome a few technical hurdles, it could be a viable alternative to cable and DSL access to the Internet from homes. And given that the electrical power grid reaches nearly every home in America, even rural customers who can't get cable or DSL service could still get broadband access via BPL.

Sounds like a dream, doesn't it? An ordinary electrical outlet equipped with a BPL modem delivers your data, voice and video communications - at a rate that is faster than DSL and cable today. The market potential is so huge that companies like AT&T, IBM, Cisco, Mitsubishi, Motorola, Google and many of the major power companies in the country have invested in the technology and trial programs. 

Recently, my own firm Currid & Company participated in a BPL demonstration sponsored by CenterPoint Energy of Houston. CenterPoint and IBM just announced a joint effort to explore the uses of the technology, especially for the utility industry. In addition, CenterPoint has opened a BPL technology center in Houston, as well as launched a pilot program to a limited number of homes in its hometown. You can read more about the IBM/CenterPoint joint effort here: http://www.networkworld.com/news/2005/071105-ibm-bpl.html?rl

The Wall Street Journal recently reported that a group led by Google, Hearst Communications and Goldman Sachs invested $100 million in a company called Current Communications Group. Current reports the funds will be used for capital and operating expenses in the U.S. and abroad as it begins to rollout BPL service to consumers.

The FCC is enthralled with the technology and supports further development.  There are a few glitches to be worked out, however. Access BPL - signals that travel through overhead and underground power lines - emits low-level radio communication signals that can interfere with licensed radio services, such as amateur radio and some emergency services communications. What's more, in-house BPL - signals that travel within the home - can be relatively slow due to older wiring that can't sustain the high broadband throughput once the signals enter the home. In some cases, service is slower than DSL or cable inside the house.

Linda Musthaler is a principal analyst with Essential Solutions Corporation.