DirecTV partnering on a BPL technology

August 15, 2007

Broadband over Powerline (BPL) technology hasn't received a significant amount of media attention as a competitor to DSL and cable services, but with DirecTV partnering on a BPL technology that will first be rolled out in the Dallas-Fort Worth and Cincinnati areas, BPL technology might emerge as a viable alternative to other access methods.

DirecTV has concluded a wholesale distribution agreement with Current Group that will enable the satellite broadcaster to begin offering high-speed Internet and VoIP services over Current's Broadband over Powerline (BPL) networks, which are currently under construction in Dallas-Fort Worth and Cincinnati.

The new agreement is expected to enable DirecTV's subscribers to pair the company's standard and high definition TV offerings with the new broadband service, the broadcast satellite operator said.

"By choosing this bundled option, DirecTV's customers will be able to enjoy fast, reliable, and secure high-speed Internet service anywhere they have a power outlet in their homes," explained DirecTV vice president Evan Grayer.

Making a Triple-Play

BPL connections are sent right down the community's AC power lines at data speeds that are significantly faster than what today's typical cable modems are capable of providing. The symmetrical nature of BPL networks means that the higher upload speeds required for playing interactive games or uploading significant volumes of digital content will become available to BPL subscribers, who will merely need to plug in a modem-like device to any electrical outlet in the home in order to access the network.

This week's announcement represents just part of the satellite broadcaster's strategy to have the same "triple play" capabilities that rival cable companies already have: the ability to sell video, voice, and data services to customers.

Although satellites are certainly broadband platforms, the high cost of building, launching, and maintaining them places them on an uneven footing with rivals on the ground. To compensate for the higher costs, today's broadband-satellite operators HughesNet, StarBand, and WildBlue place restrictions on how much bandwidth a subscriber can access in any given billing period.

As time goes on, these bandwidth restrictions are expected to become more odious to consumers wanting the same video-download capabilities that subscribers to wire-line broadband systems enjoy. In addition to the restrictive bandwidth caps, voice communications through satellites can be problematic because of latency -- the significant time delay that occurs when signals travel over the 44,000-mile path between the ground stations and the satellite.

An Initial Test Bed

Current's Dallas-Fort Worth BPL network is expected to reach about 1.8 million homes and businesses once the network is completed in the next several years. At the same time that Current builds out its broadband network, it will be deploying new Smart Grid utilities designed to improve efficiency and reliability of electric service.

Initially, however, the coverage in Dallas-Fort Worth will be far smaller than the total build-out planned, which is not all bad for DirecTV because it would give the satellite operator a chance to use the network as a test bed before fully committing itself to the technology. The satellite operator's agreement with Current includes the addition of the other geographic markets that will come into play as Current builds out its network.

The FCC gave the formal go-ahead to BPL technology last November as a way to foster competition with today's DSL and cable broadband services. Given BPL's current fledgling status, it would not be surprising if DirecTV continued to explore other triple-play options, such as the forthcoming 700-MHz spectrum auction of frequencies formerly used by the nation's analog TV broadcasters.