Monday, November 27, 2006
Why BPL isn't coming soon
My friend and colleague, Roberta Fox, has an article about broadband over power lines (BPL) in her most recent Foxgroup Flash newsletter.She writes about the FCC recently providing a supportive ruling to the United Power Line Council, in declaring BPL internet access service as an information service, and therefore subject to a largely 'hands-off' regulatory regime. Roberta writes:
We expect the States to keep ahead of Canada in this area due to their higher appreciation for more consumer choice in a competitive industry to drive down cost and increase delivery capability, but the Canadian Government's insistence with the CRTC to encourage competition will hopefully mean that we won't be too far behind.Let's not forget another significant structural difference. In the US, the vast majority of electric utilities are private corporations, publicly traded on Wall Street and therefore motivated to find profitable sources of new revenue.
In Canada, the vast majority of electric utilities are owned by municipalities with very different business drivers.
Will deployment of BPL provide a meaningful third-wire to compete with telcos and cable companies in urban environments? Will increasing speeds for wireless services damage the business case for BPL in rural markets?
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CRTC, FCC, utelco, BPL, Roberta Fox
Posted by Mark Goldberg @ 11/27/2006 06:23:00 AM 
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Despite the fact that a vast majority of the electric utliities in Canada are municipally owned, in Ontario at least, several of the larger ones (viz. Toronto and Ottawa) have created telecom subsidiaries as profit making ventures to help with municipal finances. A CRTC move that sent a positive signal with respect to BPL might get these utilities to move on introducing the services and provide another layer of comptetion to the telcos. Whether or not BPL could ever work in rural areas, I have no idea, but it might be something provincial governments that are looking at enhancing access in rural areas (digital divide) might want to look at as an option for helping to solve the problem while the deferral account decision gathers dust.
In Canada, the vast majority of electric utilities are owned by municipalities with very different business drivers.
Will deployment of BPL provide a meaningful third-wire to compete with telcos and cable companies in urban environments? Will increasing speeds for wireless services damage the business case for BPL in rural markets?
In Canada, the vast majority of electric utilities are owned by municipalities with very different business drivers.
Will deployment of BPL provide a meaningful third-wire to compete with telcos and cable companies in urban environments? Will increasing speeds for wireless services damage the business case for BPL in rural markets?
Posted by 
: 8:00 AM, November 27, 2006
: 8:00 AM, November 27, 2006
BPL is taking off in the US because cable penetration is lower and in many areas there is only DSL available. Where there is only one provider, BPL could be justified. In Canada's urban centres where most households are passed by both telco and cable, is there really a market? Do I want my tax dollars funding competition to the telcos/cablecos who will always be able to outspend the utilities? NO
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Posted by : 10:24 AM, November 30, 2006
: 10:24 AM, November 30, 2006 << Home
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