A new report by Innovation Observatory, more than $378 billion will be collectively invested in building electricity smart grids by 2030. Sources: Http://Xrl.Us/Bii2sf http://xrl.us/bigqfh

Tuesday, September 12, 2006

BPL as “Virtual Dark Fiber,” a new concept that makes power lines throughout the world analogous to dark fiber that needs to be “lit” by BPL equipment

BPL to the rescue?
Sep 12, 2006
By Dr. Robert C. Raciti

Broadband over Powerline (BPL) is an emerging technology that has great potential for enabling all forms of service providers to offer robust products and services. Unfortunately, competition from cable modems, DSL, and wireless broadband along with the poor track record of success stories have curbed the enthusiasm for many ambitious BPL business plans.

Enter “Virtual Dark Fiber,” a new concept that makes power lines throughout the world analogous to dark fiber that needs to be “lit” by BPL equipment. This “virtual dark fiber” approach to the communications market gives local power companies dark fiber inventory throughout the world.

Once a customer purchases an Indefeasible Right to Use (IRU) between two points, the IRU owner rather than the power company invests in the infrastructure required to deploy high-speed data connectivity. The concept is simple: Rather than spend money deploying large-scale BPL solutions to provide residential broadband, the power companies should simply publish their inventory of power lines and sell the rights to use these lines for point-to-point BPL solutions.

Deploying BPL in this way will allow power companies to focus on their core energy business and monetize their power lines for BPL purposes. This approach creates connectivity alternatives for all of the communications infrastructure providers including incumbent telcos, wireless operators, cable companies, ISPs, and CLECs, among others.

We all know that there is no one technology that can provide end-to-end solutions. Even wireless infrastructures rely on terrestrial backhaul. BPL is no different. Therefore, rather than focus on forcing a single technology to provide end-to-end solutions, the focus should be on including BPL as one of the numerous technologies that incumbent service providers can deploy to cost-effectively service their customers. Whether it be wireless broadband operators that need high bandwidth to towers, cable operators that need high bandwidth to certain neighborhoods, or even incumbent telcos that need to provision additional bandwidth over a river or to an office park, BPL can help most service providers deploy communications solutions throughout their markets.

This low-cost alternative can also help accelerate the adoption of broadband that will drive the digital distribution of content including video, audio, games, IPTV, and the next generation of interactive digital content.

The Virtual Dark Fiber concept would help accelerate the global broadband market. It would also help power companies monetize their assets for BPL, help the service providers solve connectivity challenges, and help the BPL equipment vendors sell to customers once thought of as the competition.

(Dr. Robert C. Raciti is a senior vice president with GE Commercial Finance’s Global Media & Communications business, specializing in marketing & technology risk. For more information, please visit www.gegmc.com )

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