Current, DirecTV offer Internet connection via power lines around Dallas' M Streets

12:05 AM CDT on Friday, March 21, 2008
By ANDREW D. SMITH / The Dallas Morning News
asmith@dallasnews.com

Late last summer, Current Communications and DirecTV promised to deliver fast Internet connections over the Dallas power grid by New Year's Day.

The holiday came and went without a word from either company, leading many to assume they'd missed the mark. In reality, the two companies quietly achieved their unusual goal.

Current has equipped nearly 130,000 homes in part of Old East Dallas to receive the service, while DirecTV has just begun marketing to about half the homes.

Packages now range from a 1.5 Mb connection that costs $20 a month to an 8 Mb connection that costs $35 a month. Special deals can push costs down to as little as $10 a month.

DirecTV says those prices beat anything its competitors sell in the same area. It also touts several cool features of broadband over power lines.

Unlike most fast Internet technologies, BPL connections upload data as quickly as they download it. That's good for people who share photos and movies.

BPL can also support lots of users in the same area without slowing down, as does delivery by cable. DirecTV won't guarantee maximum speeds at all times, but it says customers should never see speeds that are only a fraction of what they're paying for.

"The other advantage of BPL is the ease of installation. You just plug your modem directly into any power outlet," said Devin Gray, vice president of broadband for DirecTV.

"If you want to move the modem from one room to another, you just pull it out of one plug and stick it into the next."

BPL networks won't work unless power companies install new equipment at every transformer. That's not a big deal in countries where each transformer serves 100 homes, but it's costly in the United States, where each transformer serves five to 10 houses.

The service also requires new energy meters at every home.

The cost of installing the first 300,000 meters around Dallas was expected to run about $450 million, but that projection was made before a decision to switch to more capable meters this year.

The need for new meters has stopped network construction while Current waits for the upgraded devices to be designed, approved and mass-produced.

Current won't guess how long the delay will last or how much it will cost to wire the 2 million area homes it plans to eventually serve.

Insiders and analysts say that Current's Dallas project may well determine whether most American utilities will embrace BPL.

A success could benefit consumers, who have yet to get much from the limited competition between telephone and cable companies.

Advertised speeds have been creeping up, but prices have held steady or increased. AT&T Inc., for example, recently announced higher prices for its DSL service.

A third major competitor could tilt the playing field in favor of consumers, even those who don't get DirecTV. Current hopes that other companies will sign on to sell BPL to residents.

"We're in discussions with a number of other parties and have some good interest, but I can't name names," said Brendan Herron, Current's vice president for corporate development and strategy.

DirecTV could also profit from widespread BPL.

The company has long partnered with telephone companies to bundle satellite-TV and high-speed Internet.

But with the telephone companies building their own TV systems – systems such as Verizon's Fios and AT&T's U-verse – DirecTV is looking for new Internet partners.


INTRODUCING BPL


Where is broadband over power lines available?

Current has wired more than 128,000 houses in the M Streets and surrounding neighborhoods in Dallas, but DirecTV's service area extends to only half that many houses.
How can I tell if I live in the service area?


Homes need new power meters to use BPL, so if you live around the M Streets and have a new meter, you're probably in Current's service footprint and have about a 50-50 shot of qualifying for DirecTV service. If you have the same meter you've had for years, your home is not wired for BPL yet.
How can I get the service?


If you think you live within the service area and are a DirecTV customer, call DirecTV and ask. Folks who live inside the footprint but don't want to do business with DirecTV will have to wait for Current to find other retailers.
Can I call Current to get BPL?


No. Current doesn't sell fast Internet directly to consumers. It will sell its capacity through experienced retailers. It's working to sign up other partners, especially power companies. Such partnerships would let consumers buy fast Internet and electricity on the same bill.