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Internet via power lines
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February 22, 2001: 7:03 a.m. ET
Powerline Technologies ditches phone lines for electrical network
By David Lawlor
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NEW YORK (Business2.com) - It's the age-old battle of Alexander Graham Bell versus Thomas Edison --using new-age technology. The Internet is streamed out to millions of homes using telephone lines. And up to now, in the Internet Age, Bell has edged out his inventive counterpart.
Bell one, Edison zero. But Powerline Technologies, a subsidiary of PowerTrust and M@in.net Communications Ltd., has just completed successful U.S. field tests of new technology that transmits broadband services over the existing power grid infrastructure to homes and businesses, the company says.
Chalk one up for Edison.
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It would optimize the [power] lines already in place and eliminate the need to build extra lines, which should save on costs.
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Linda Byus |
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Powerline Technologies completed its trials over power lines utilizing both overhead and underground power lines, says Sean Collins, vice president of Powerline Technologies. The trials showed the technology could transmit broadband communications over low- and medium-voltage power lines -- like those found in residential neighborhoods. The Internet data would enter the home or office through a box plugged into an electrical outlet. The box has an Ethernet port that can then be connected to the computer.
Using the power lines instead of phone lines would allow customers to bypass such services as DSL or other high-speed Internet access. This means that people living and working in areas where DSL service is not available could still receive high-speed access. The new method is faster than both DSL and cable modems, Collins says.
The technology has already been adopted in Europe, where a commercial service is available in Germany and soon to be available in Spain, France, and Italy. The next step in courting the U.S. market, Collins says, is to offer select users service for a trial period. Then, Powerline Technologies must contract with each local electricity service provider to gain access to the power lines in any given area.
The idea of sending Internet data using the existing power grid has been around for a few years, says Linda Byus, a utility analyst for Dresden Kleinwort Wasserstein. She says while the concept is sound, the technology to make power grids a viable alternative has yet to fully develop.
"It sounds like a great idea," she says. "It would optimize the [power] lines already in place and eliminate the need to build extra lines, which should save on costs." 
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