[Park] BPL

[Dave Haney]

>From www.internetnews.com

February 20, 2004
EarthLink Invests In Powerline Broadband
By Jim Wagner

Earthlink (Quote, Chart), one of the largest broadband Internet service
providers in the U.S., is investing $500,000 in a broadband Internet
technology only recently approved by the Federal Communications Commission
(FCC), it was announced Friday.
Officials at Ambient Corp., a Newton, Mass., communications company
specializing in broadband over power line (BPL) broadband Internet,
announced the ownership investment in its company, as well as the addition
of Earthlink to its advisory board, the first ISP to join their ranks.
The announcement is another victory for Ambient, which provides Internet
connectivity over a medium that's faced a lot of criticism the past year
over interference concerns. BPL uses radio frequency (define) power to
deliver digital information over a utility line, using repeaters at power
boxes to strengthen the signal from the carrier to the home.
Because of the ubiquitous nature of power lines, the FCC has warmly embraced
the technology as an alternative to existing broadband Internet
technologies, and bridging the digital divide throughout the country, mainly
in rural locations. Digital subscriber line (define) is limited to areas
surrounding telephone companies; cable isn't carried outside urban areas
(for the most part), and satellite Internet connectivity is bogged down with
lag issues.
According to Ambient officials, Earthlink and Con Edison have been working
side-by-side with them the past two years on a BPL pilot. And even though
they provide cable, DSL and satellite Internet connectivity, officials said
its part of the company's strategy to look at next-generation technologies
as well.
"We look at it as our role to support companies and encourage development of
broadband," Dave Blumenthal, Earthlink spokesperson, told internetnews.com.
"We plan to participate in trials of a broad array of alternative broadband
technologies."
On Wednesday, Earthlink launched a BPL pilot program with Progress Energy in
North Carolina. The test bed involves 500 homes and costs $19.95 for the
first three months and $39.95 afterwards.
For a company the size of Earthlink, a half-million bet on a BPL carrier is
a slight risk for the company if the technology doesn't pan out; on the
other hand, it is positioned to reap bigger rewards if BPL is successful.
The investment contract includes the option to buy more shares of the
company down the road.
It's uncertain whether BPL will pay off in the long run, despite Earthlink's
increased interest and the well-wishes of the FCC. Amateur radio enthusiasts
claim the interference issues caused by BPL more than offset the advantages
to the technology.
Under Part 15 of the FCC's rules governing wireless communications,
unlicensed equipment has to abide by emission rules before it's used in the
U.S. Equipment used in fixed wireless Internet connections also fall under
the Part 15 rule.
Last April, the FCC released a notice of inquiry (NOI) regarding BPL, taking
arguments both for and against the technology from 5,100 individuals and
organizations. The agency then released a notice of proposed rulemaking
(NPRM) Feb. 12, finding that although BPL equipment couldn't sufficiently
address Part 15 emission guidelines, it would approve the use of the
equipment in rollouts.