[TWIAR] Google's (BPL) Power Play

[Greg Williams]

Google’s Power Play

Internet search giant Google, investment house Goldman Sachs & Co. and The
Hearst Corporation have put an estimated $100 million into broadband over
powerline (BPL) start-up Current Communications Group LLC.

Google’s interest ostensibly is fostering the proliferation of broadband
and, thus, is garnering more customers for Google’s search engine and other
services. More realistically, Google has been making money hand over fist,
putting it in a position to invest some of the cash in promising ventures.

As reported by sister publication Broadband Business Forecast, BPL is in
just such a position, following the Federal Communications Commission’s
ruling last fall setting out policy for use of the technology (BBF, Oct. 19,
2004). The BPL industry had been in low gear as it awaited that ruling,
which rejected most of the objections to BPL from various quarters, the most
vociferous of which were amateur radio operators fearing that BPL would
disrupt their communications.

Current Communications, meanwhile, has emerged as one of the leaders in the
nascent BPL market, calling itself the market leader. With only a handful of
BPL deployments nationwide by the entire industry combined, market
leadership is, in any case, a moot point. Current can boast of what is
thought to be the largest single BPL deployment – in Cincinnati, Ohio –
through a partnership with Cinergy, which also holds a minority stake in the
company. It also has smaller deployments – basically testbeds – in Maryland
and Hawaii.

“With roughly two-thirds of the nation still without broadband, and many
utilities looking for the means to upgrade their distribution networks, the
acceleration of Current’s buildout is a clear win-win for consumers,” said
Chairman William Berkman in a prepared statement. "These investments provide
us with both capital and operating assistance as we continue to roll out
broadband-over-power line services to provide voice, video and data
services."

In addition to Google, Goldman and Hearst, Current says the financing round
also included additional investments from two of its existing investors:
EnerTech Capital and Current’s principal stakeholder Liberty Associated
Partners LP, an investment partnership between Liberty Media Corporation and
the Berkman family. Current did not disclose details of the investment
round, including the amount each investor tossed into the kitty.

Gregory S. Williams
k4hsm at knology.net