Power Companies Seek More Juice

By Mark Rockwell
November 15, 2006

WASHINGTON—Power companies are still looking to get a slice of 700 MHz spectrum for their internal use in upcoming auctions for guardband spectrum, despite moves by the FCC to open up new communications capabilities based on power lines.

The FCC voted Nov. 3 to classify broadband over powerline (BPL) technology as an information service, which puts the technology in the same protected space as other new or emerging services, such as DSL and cable Internet access, and accelerates its distribution and sale. Those technologies aren't subject to the old telephone carrier service and rate regulations, and they enjoy more of a non-regulated status as the commission looks to foster them as competitive alternatives to traditional wireline services.

The new classification can help powerline providers bring another broadband access competitor to the consumer Internet access market. BPLs use the power grid to transmit signals, and can be deployed as far as a power company's lines reach – directly into homes.

"The commission's broadband statistics show that subscribers to BPL Internet access services, although few in number overall, increased by nearly 200 percent in 2005. These services hold great promise for consumers," says FCC Chairman Kevin Martin.

IN-HOUSE USE Despite the service's competitive potential, the power industry is still looking to the FCC's next spectrum auction to see if it can't line up more 700 MHz spectrum to use for power companies' internal land mobile radio networks. Power companies intend to aim developing BPL services primarily at the consumer Internet access market, not at their internal communications infrastructure, say industry officials.

The United Telecom Council (UTC), a group that represents power companies in Washington, has been looking to the FCC's preparations to sell 700 MHz bandwidth, probably next year. Power companies still need spectrum, says Brett Kilbourne, director of regulatory affairs and associate counsel at UTC.

It won't, however, solve power companies' needs for additional 700 MHz guardband wireless spectrum to use for internal communications at the UTC. The FCC asked the UTC and Motorola in September for ideas on how to re-allocate the 700 MHz guardband channels that border the main 700 MHz B and C blocks that the FCC is preparing to auction off. It wanted to know whether the spectrum could be used to support "critical infrastructure" applications such as power company networks. The power industry hasn't been allocated any spectrum for about 10 years, Kilbourne notes.

WEIGHING IN The FCC's inquiry into the re-allocation of 700 MHz guardband spectrum has generated response from those hoping to use it for public safety or other applications. Commercial carriers also are looking at the spectrum as a way to provide more extensive wireless coverage. Paul Garnett, director of regulatory policy at CTIA, says the FCC needs to resolve whether the commercial spectrum licensees would be required to provide more interference protection to the guardbands, which could lessen the potential of the spectrum in the 700 MHz B and C block auctions.

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