Internet on the power line

Few people realise that if you have a mains power line to your home or business - and who doesn't? - fast internet access connections of up to two megabits per second can be delivered over it.

That's right, a broadband internet service that doesn't require a telecommunications cable, Jetstream-enabled phone line, microwave link or radio frequency.

Companies experimenting with broadband over power lines (BPL) technologies promote it as an inexpensive-to-deploy alternative and a way for broadband to reach rural and other broadband-starved areas because of the near ubiquity of power lines. Sounds great, but who would buy it?

Well, I would. As a freelance journalist working from home, I need a fast, reliable internet connection for research, document exchange and email. However, where I live, there is no mobile data network coverage, no wireless or satellite services, and no ADSL (Jetstream) for the phone line.

I spend a lot of time fidgeting with paper-clips while I wait for data to download and begging people not to send me large files by email.

Throughout the world there are a lot of people like me who exist in that "last mile" of connectivity broadband providers can't quite reach, and many businesses that value having a choice of broadband services and pricing.

And since both home and business markets are attractive to utilities companies, BPL services should be springing up all over the place. So why aren't they?

There are some barriers, and these differ between countries. In the United States, technical barriers nearly eliminated commercial BPL as it was found the signals interfered with short wave radio broadcasts, such as those made by airlines and emergency services.

The battle between those who wanted BPL and those who wanted to protect short wave radio raged until October 2004, when the US Federal Communications Commission (FCC) adopted a model to allow commercial companies to develop BPL while safeguarding short wave services.

So far, so good. There are now several commercial trials under way for BPL in the United States.

But it's Europe that most BPL developers are keeping an eye on. There, hundreds of BPL business trials are under way, most notably in Germany and Spain but also in Britain, Switzerland, France and Finland.

So what about New Zealand? In keeping with our pioneering spirit, we've already tried it. In 2002 a joint venture between Buller Electricity and ISP Tasman Solutions saw a BPL trial to supply the Westport region. That trial was apparently abandoned through radio frequency "leakage".

Around the same time United Networks initiated a trial to Northland homes, which was continued by Vector after its takeover of United. That trial was also wound down early last year when Vector found the service wasn't commercially viable.

Maxine Elliott, head of Vector Communications, says though she is familiar with the latest FCC ruling, Vector Communications has looked at broadband technologies across the world and found BPL wanting.

"Unfortunately our research has indicated that power line carrier technology is not commercially viable as it only covers small areas and is very expensive."

Other BPL service barriers include the potential for increased competition in the market from the likes of Telecom and Vodafone, and the excessive requirements of energy industry regulators.

Considering this and the fact utilities companies lay their own fibre optic cable for telecommunications sales, you'd expect the concept of providing BPL services in New Zealand to be dead in the water. But it isn't.

"We are still proactive in that area but like to keep a low profile about it," says Neil Simmonds, CEO of Counties Power.

Simmonds says while BPL "really struggles" technically, it has the potential to work well commercially in New Zealand.

"While it never quite catches up with the speed of wireless options and is extremely short-range, there is a model that could work. We could use our fibre to get to the areas, then the mains power lines to get to individual homes and businesses."

He says he wouldn't be surprised to see chipset manufacturers like Intel start to support BPL initiatives overseas, considering that BPL local area networks (those without an outside connection to the internet) can be set up using store-bought devices.

Rob Jamieson, general manager commercial for Christchurch utilities company Orion New Zealand, says Orion technicians are observing the European trials with interest.

"We're not quite ready to shut the door on it but there are enough fast-enough telecommunications services in New Zealand to make initial subscriber uptake slow."

He says a large volume of subscribers is important for New Zealand, which has small providers who need to justify the expense of placing BPL devices in transformers and substations to allow data signals to travel with less interference to homes.

In other words, if BPL is trialled in New Zealand in the future, and you're interested, remember you'll have to "use it or lose it".