IBM joins BPL community

In less than one week, broadband over power line technology has gained two new champions. Last week, Google joined other investors in pouring a projected $100 million into BPL pioneer Current Communications, and this week, IBM announced it is teaming up with CenterPoint Energy, a Texas power company, to create a center in Houston to test BPL and to conduct a pilot field trial of 220 homes.

All of this activity focuses attention on the potential third broadband “pipe” into U.S. homes, following cable modems and telco DSL links. Interest in another broadband player is expected to increase following the U.S. Supreme Court decision that the cable companies don’t have to open their networks to other Internet service providers and broad hints from Republican members of the Federal Communications Commission that telcos will soon get the same protection.

IBM is contributing hardware and software, including servers, PCs, wireless gear and kiosk technology, to the center and the trial. The company has already explored BPL in Italy.

The focus of the Houston trial is on using BPL both to deliver a consumer service and to add intelligence to delivery of electric service.

“This is an exciting technology to explore, said Don Cortez, vice president for BPL Development at CenterPoint Energy Houston Electric. “We believe BPL has the potential to enhance existing electric delivery systems through the development of 'smart grid' technologies, such as automated meter reading, real-time system monitoring, preventive maintenance, outage detection and restoration, as well as other potential applications. These ‘smart grid’ technologies should result in improved system reliability, service and safety for electric customers.”

Telecom analyst Jeffrey Kagan said the news is exciting for the BPL community, but cautioned against too much optimism. BPL must still prove itself to be a viable alternative to cable and telco options.

“I met with IBM at Supercomm, and they are serious about the opportunity in telecommunications,” Kagan said in an e-mail analysis. “They have spent the last few years gearing up for the telecom market and have started rolling out services. This is a big potential for IBM, but we still have to see how well IBM markets and delivers the service and how it compares to the broadband connections from the phone company and the cable television company that customers already use.

“IBM has been quiet about this opportunity until now,” he added. “This year is IBM's coming out party for telecommunications services. But they still have to prove how well they can offer services.”