An electrifying issue

Forget about DSL. Skip cable modems. And broadband wireless? Nah. Forget new and whiz-bang. Instead, think about Internet access via one of the oldest utilities around: electrical lines.

Last week, two power-related companies unveiled their plans for technology integration and joint development to turn electrical outlets into Internet inlets. Warren, N.J.-based Enikia and Oneline, a subsidiary of German utility E.ON Energie, are pooling their expertise to bring telecom technologies to utility companies.

Oneline plans to integrate Enikia's home networking and Internet access technologies into its consumer communications control devices, which allow voice and data to be transmitted via the power grid (Powering the Network, April 24, page 4).

The companies promise to deliver high-speed Internet and digital services to utilities, which can offer them to end customers. They aren't the first to develop powerline-based home networking technologies. The concept - and varying implementations - have been quietly incubating for years. What strikes me is the timing.

Today's telecom providers are in a mad dash to offer DSL. That has given cable modems a run for their money. And wireless access is gaining momentum. In fact, many believe it soon will be the broadband access technology of choice. So where does that leave power?

Right at the front door. Literally. Every home with a PC has electricity or else what would be the point? Logistically, offering service could be a breeze for utilities. They already have the network: The power grid is ubiquitous. No truck rolls, no techs, no rewiring.

Powerline access puts utility companies further into the realm of "service provider." Is it feasible that one day a consumer could pay a single bill for voice, Internet and electrical service?

Their success, of course, hinges on proper implementation, education - internally and externally - and marketing. Creating a simple device that consumers can plug in is the first step - and one that DSL providers are struggling with. To avoid the fate of ISDN - and, to a lesser extent, DSL - the utilities must ensure their techs understand how to provision data and telecom services. They must tell customers what the network will - and won't - do.

Having ubiquitous access is a plus, but it's not enough. In Chicago, for example, the local power company has been derided for poor service and inadequate upgrades. Still, I'd bet that, in general, power providers have a track record equal to or better than many upstarts today. They've been around for 100 years and have proved they can maintain a service network. Perhaps even more crucial is the fact that they have familiar brands.

It's not as sexy a technology as DSL or broadband wireless, but the Home Phoneline and Networking Alliance recently announced a 10 Mb/s standard, and Cahners In-Stat Group estimates the home connectivity market will grow from $567 million this year to more than $6 billion in 2004. Why not let the utilities take a piece of that pie? It could further shake up what appears to be a shaky market.