Wednesday, July 20, 2005

Broadband eyes a quantum leap

Internet access 50 times faster than current speeds could arrive via TV cables as early as '06.
July 20, 2005: 7:48 AM EDT


HELSINKI (Reuters) - Broadband Internet access via TV cables will be able to hit 100 megabits per second as early as next year, 50 times faster than the average broadband speeds now offered to cable TV homes, a Finnish firm said Wednesday.

Similar data transmission speeds are possible over fiber networks, but these cost much more for the operators to build.

"This is a cost-efficient technology as we use the cable TV networks which are already in place," Jukka Rinnevaara, chief executive of small-cap Finnish broadband equipment manufacturer Teleste, told Reuters.

Teleste, whose rivals include big U.S. firms Scientific Atlanta (up $1.11 to $38.31, Research) and Cisco Systems Inc. (up $0.52 to $20.17, Research), said it would early next year bring to the market its ethernet-to-home product, which will give consumers access to 100Mb/s speed.

The sector is closely followed by big technology firms. Last month Sweden's Ericsson (up $0.04 to $34.07, Research) offered $51 million to buy Norwegian firm AXXESSIT, which makes broadband ethernet access equipment for telecom operators. To accelerate the transmission speed Teleste fits ethernet -- a cheap and standard transport method for Internet data over broadband networks -- into cable television networks.

It said it expects first rival technology to be on the market at the earliest in the second quarter of 2007.

Teleste is running a field-trial with cable TV service provider Essent in Netherlands, but not yet at the top speeds it expects most homes will need within a few years.

"Based on our research, 30 megabits per second is the absolute minimum in future homes. Just one TV program would take 10-20 megabits per second of this alone. So, very fast we would reach a need for 30 megabits, and also for 50 megabits per second," Pekka Rissanen, a Teleste executive told a news conference.

Rissanen said the cost of connecting a home with the new ethernet-to-the-home technology can vary between 50 ($60.28) and 200 ($241).

CEO Rinnevaara declined to say how much the new technology could boost Teleste's sales or profits in the next 12 months.

Internet access may also hit your power outlets.

Internet may come to your power outlet

CenterPoint, IBM team up to test technologies for high-speed access over electrical powerlines.
July 11, 2005: 6:22 AM EDT



NEW YORK (Reuters) - Utility operator CenterPoint Energy Inc. and IBM will team up to test new technologies for delivering high-speed Internet access over electrical powerlines, the companies said Monday.

CenterPoint (up $0.19 to $13.49, Research) has opened a technology center at one of its facilities in Houston, with design help from IBM (up $1.92 to $79.30, Research), and has also launched a trial of broadband over powerline (BPL) to a 220-home area in Houston, they said.

CenterPoint said its BPL pilot will run through this August, after which it will evaluate consumer response and the merits of a larger deployment.

Last week Current Communications Group, which develops BPL services, raised a reported $100 million in financing from a diverse group of investors including Google Inc. (up $0.69 to $296.23, Research) and Goldman Sachs to fund the deployment of its technology.

Broadband services over electrical lines are seen as an attractive alternative for rural areas where traditional broadband delivery mediums like cable and telephone lines do not or can not reach.

How does BPL work?

Internet in your electrical outlet?
Now that it's good enough for Trump Tower residents, BPL may come to your home, too.
January 25, 2005: 11:41 AM EST
by Katie Benner, CNN/Money staff writer

NEW YORK (CNN/Money) - Web surfers unable to hook up to limited high-speed connections have quietly suffered the pains of clunky, slow Internet service because they had no choice; and they had to stay connected.

But thanks to broadband over powerline (BPL) technology, high-speed connections may soon be available to anyone with electricity.

For example, the prestigious Trump Place in New York City has hired Telkonet (up $0.22 to $6.02, Research), a company that provides broadband access via electrical wiring, and Microwave Satellite Technologies to provide its residents with Internet access that's as easy to use as plugging in a toaster.


Once the BPL system is installed, it "will enable (the delivery of) high-speed data services, Internet gaming and Internet telephony VoIP," said Microwave Satellite Technologies president Frank Matarazzo.

"We are excited about Telkonet's breakthrough technology because we can broadband-enable an entire building within a few days and without new wiring. (And residents) can enjoy broadband access from every electrical outlet in their apartment," Matarazzo added.

The MST/Telkonet system will also be installed in other apartments and in an assisted living facility in the New York area, picking up the trend set in a handful of small cities nationwide.

BPL feeds low-power radio signals over power lines. A BPL modem plugs into a regular electrical outlet, receives the radio signals from power lines and converts them into a digital Internet connection.

"Watching someone plug in their modem and see their computer come up with hi-speed Internet access is very rewarding," said Allen Todd, director of the Manassas Utilities Department. Manassas, Va. was the first U.S. locale to offer BPL services citywide, beginning its pilot program in early 2003.

Manassas utilities workers have installed nearly 1,000 BPL modems in both commercial and residential locations, while the city's partner, privately-held COMtek Communications Technology, takes care of service, customer relations and billing.

While there are still bugs to be worked out, BPL quietly marches on with city pilot programs opening in Detroit, Cincinnati and Sault St. Marie, Ontario; and businesses like the Sandman Hotel chain in Canada installing Internet access customers can plug-in to.

Small cost, far reach
The costs of rolling out the service should be relatively small, since the electrical grid is widespread and the potential returns are high, the Federal Communications Commission said in a statement late last year after changing its rules to encourage the development of BPL.

"This new technology holds great promise as a low-cost broadband competitor. The pervasiveness of the utility grid means that almost every home in America can be accessed by this type of service," FCC Chairman Michael Powell and Commissioner Kathleen Abernathy said in a statement.

And the service may prove less expensive than some other Internet service options. For example, Manassas resident pay $28.99 a month for BPL, while residential hi-speed cable modem from Comcast costs $42.99 a month. Moreover, most homes and businesses are on the grid, but do not have a pre-existing cable modem infrastructure.

While no major players have surfaced as leaders in the new technology, 50 companies have joined together to form the HomePlug Powerline Alliance, established to create the standard products for BPL home networking.

This consortium includes Comcast (up $0.33 to $33.33, Research), Conexant (up $0.02 to $1.55, Research), EarthLink (up $0.12 to $10.19, Research), RadioShack (up $0.02 to $32.19, Research) and Sharp, as well as utilities companies

Con Edison (up $0.02 to $43.60, Research) has also thrown its hat in the BPL ring as the majority shareholder of Ambient Corp., a development stage company that designs, develops and markets technologies that use electric networks to deliver broadband services.

Radio operators worry
Short wave radio operators have opposed the technology, saying it can interfere with radio waves. They also have said that when certain short wave frequencies are used it can interfere with Internet access in nearby homes.

In order to address these concerns, the new FCC rules establish excluded frequency bands that BPL must avoid to protect aeronautical and aircraft communications. Exclusion zones were also established in locations close to sensitive operations like coast guard stations.

Manassas has also dealt with problems posed to hobbyists by "notching" or removing the frequencies used by short wave radio users.

"The SEC announcement is a win-win for radio operators, since it puts enough restrictions and controls to make sure radio hobbyists are protected. But it's not so restrictive that BPL can't provide high-speed Internet access to customers," said Manassas Utilities Department director Allen Todd.

Earlier in the month, HomePlug addressed this problem, unveiling its standard BPL networking technology that allows enough bandwidth to provide efficient BPL operations, but does not interfere with ham radio operators.

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