Technology Experts Question BPL as ‘Serious’ Contender
Technology experts expressed doubts Fri. about broadband over power lines (BPL) ever reaching large-scale deployment. Niche applications may be possible, but “if the question is whether it will be competitive with DSL and cable, I doubt it,” Dale Hatfield, dir. of the U. of Colo.’s Interdisciplinary Telecom Program, said at the FCBA-Practising Law Institute conference. “I look at the capability [of BPL], at the condition of the power lines and I think it’s unlikely to deliver what cable or fiber is capable of delivering,” said Verizon Wireless Exec. Vp Richard Lynch.
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FCC Policy development chief Robert Pepper said BPL has interesting applications, for example in more efficiently bringing broadband services to high-rise apartment buildings through the grid inside the building. But Hatfield said that’s a niche application, and he questioned whether BPL has the potential for widespread application. BPL is “a technology that was not designed for that purpose, owned by companies that are not risk takers,” raising the danger of a “too little, too late,” approach, Hatfield said. Where BPL may excel is managing the electric power grid, said Bruce Franca, deputy chief of the FCC Office of Engineering Technology.
Some members of the group, appearing on a panel on the future of telecom, expressed similar doubts about Wi- Max becoming a leading technology. Lynch said he foresaw 3-G offered by LEC carriers as the dominant nationwide wireless transport network and Wi-Fi becoming the customer’s technology, leaving a question about the role of Wi-Max in between. “I'm not convinced yet that Wi-Max is a winner,” he said. “I'm not sure what the business model is.” Meanwhile, most of the panelists said they expected VoIP to overtake the circuit-switched network but probably not as quickly as some have said. “Total replacement of circuit switching will take a decade or more,” and “some carriers will ride as long as they can,” on the embedded circuit network, said Lynch. Clearly, the transition appears to be moving quickly, although some of the movement to VoIP is “driven by arbitrage opportunities,” said Hatfield. “Things take time,” said Pepper. “Mobile wireless took off slowly.”
Meanwhile, representatives of BellSouth and XO Communications agreed on the need for a Telecom Act rewrite and agreed on 2 key goals -- giving the FCC the necessary authority to fix the universal service and intercarrier compensation systems. Both emphasized that VoIP was driving a change to those systems. “It’s way past time for a change,” said BellSouth Vp Margaret Greene. XO Senior Vp Heather Gold said Congress should: (1) Apply performance measurements to the Bells’ provision of UNEs to competitors, with penalties for not meeting them. (2) Lessen state oversight of interconnection agreements, perhaps requiring they be filed and applying commercial arbitration standards. Greene urged paring down the role of state regulatory commissioners in reviewing retail rates and services.
Gold said she didn’t advocate “wholesale change” to the Telecom Act and knew few who wanted that. Both urged against Congress getting too specific in complex issues such as intercarrier compensation and universal service. Responding to an audience question, Gold said she didn’t think it was necessary “to guarantee broadband deployment at subsidized rates” as part of universal service policy. Instead, the policy should be limited to guaranteeing access, she said. Asked if they were concerned that there would be uncertainty during the rewrite process, Greene said “it is a terrifying process but I don’t see an alternative.”