A

Technical Seminar

On
PDHonline Course E454 (4 PDH)
INTERNET(BOARDBAND) OVER ELECTRIC LINES

Technical seminar Report submitted to the

Department of Electronics and Communication Engineering

in accordance with the academic requirement for thr award of the bachelor degree

Submitted By

V.VISHWANTH(215D1A0495)
2020

Under the esteemed Guidance of

Mr.M.NIKHIL SITHARAM

Asst.prof

PDH Online | PDH Center

Department of Electronics and Communicaton Enginnering

5272 Meadow Estates Drive

KASIREDDY NARAYAN REDDY COLLEGE OF ENGINNERING AND RESEARCH
Fairfax, VA 22030-6658
Phone: 703-988-0088
ABDULLAPUR(V),ABDULLAPUR MET(M), R.R(Dist)
www.PDHonline.com
Affiliated to, JNTUH,Kukatpally

An Approved Continuing Education Provider

 Department of Electronics and Communication Engineering

KASIREDDY NARAYAN REDDY COLLEGE OF ENGINEERING AND RESEARCH

ABDULLAPUR(V), ABDULLAPUR MET(M),R.R(Dist)

CERTIFICATE

This is certify that the Technical seminar entitled " INTERNET(BOARDBAND)OVER

ELECTRIC LINES" is a bonafied work carried out by Mr.V.VISHWANTH(215D1A0495), in

Electronics and Communication Engineering of KASIREDDY NARAYAN REDDY COLLEGE OF

ENGINNERING & RESEARCH, for the academic year 2021-2025.

supervisor Head of the Department

Mr.M.NIKHIL SITARAM Dr.N.ASHOK KUMAR

Asst.prof Assoc.prof

Pricipal

Dr.M.NARENDRA KUMAR
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any tasks would be incomplete

without the mention of the people who made it possible and whose encouragement and guidance has

been a source of inspiration the course of the seminar.

I am grateful to Mr. M. NIKHIL SITARAM Asst.prof ,our seminar guide for him

constant support and encouragement during the couse of the seminar.

I am thankful to Dr.N.ASHOK KUMAR Assoc.prof, Head of the Department ,ECE ,

kasirredy Nrayan Reddy College of Engineering and Research ,for his valuable guidance . I

also expresss our sincere thanks to all the staff members of our department.

I take this oppurtunity to express our gratitude to all those who helped u to carry out this

seminar successfully. we express our profound for thier valuable guidance and support. I sincere

gratitude to our principal Dr.M.NARENDRA KUMAR and also to our college faculty for giving

thier encouragement that helped us to complete the seminar work successfully.

finally, we express our sincere thanks to our parents and friends

who supported and encouraged as in many ways for successful completion of the seminar.

Mr.V.VISHWANTH(215D1A0495)
 BOARDBAND OVER ELECTRIC LINES

ABSTRACT

The use of power lines as a medium for communication services has been widely

discussed for many years. similar to the characteristics that led to the development of DSL
(digital subscriber line) , the use of surplus frequency space on power lines for communicaton

is a simole concept that has been difficult to implement.

In order to bring the high speed internet to areas where developing a

traditional boardband infrastructure would be cost prohibitive, boardband over power line

technology can deliver boardband internet signals over the existing power lines that carry

electricity.

keywords : Digital subscriber, boardband technology , AC power and data signals,

High speed internet.

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INDEX

CONTENT PAGE NO.

Lee Layton, P.E

Introduction 1

CHAPTER 1

Current status of boardband delivery 2-15

Table of Contents
CHAPTER 2

BPL Technology 16-26

CHAPTER 3
Introduction ……………………………………………… 3
Business Model for BPL 27-34

CHAPTER 4
Chapter 2, BPL Technology ……………………………. 19
Regulatory Issues 35-37

Chapter 3, Business Model for BPL …………………… 30

Chapter 4, Regulatory Issues …………………………... 38

Summary ………………………………………………. 46

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Introduction

Despite the spread of broadband technology in the last few years, there are significant areas of
the world that don't have access to high-speed Internet. When weighed against the relatively
small number of customers Internet providers would gain, the incremental expenditures of
building the necessary infrastructure to provide DSL or cable in many areas, especially rural, is
too great. But if broadband could be served through power lines, there would be no need to build
a new infrastructure. Anywhere there is electricity there could be broadband.

Technology to deliver high-speed data over the existing electric power delivery network is
available and is used in some parts of the world. Broadband over Powerline (BPL) is positioned
to offer an alternative means of providing high-speed internet access, Voice over Internet
Protocol (VoIP), and other broadband services, using electric power lines to reach customers’
homes and businesses. By combining the technological principles of radio, wireless networking,
and modems it is possible to send data over power lines and into homes at speeds up to 3
megabits per second (Mbps). By modifying the current power grids with specialized equipment,
the BPL developers could partner with power companies and Internet service providers to bring
broadband to everyone with access to electricity.

Broadband over powerlines (BPL) allows customers to get high-speed internet connections
through their electrical outlets. Users can plug a power line modem into an electric socket
anywhere in their home, without requiring any special installation or wiring. Broadband over
power lines (BPL) is the use of PLC technology to provide broadband Internet access through
ordinary power lines. A computer would need only to plug a BPL modem into any outlet in an
equipped building to have high-speed Internet access.

BPL may offer benefits over regular cable or DSL connections: the extensive infrastructure
already available allows people in remote locations to access the Internet with relatively little
equipment investment by the utility. Also, such ubiquitous availability would make it much
easier to connect other electronics, such as televisions or sound systems.

Variations in the physical characteristics of the electricity network and the current lack of
standards mean that provisioning of the service is far from being a standard, repeatable process.
And, the amount of bandwidth a BPL system can provide compared to cable and wireless is
somewhat of an unknown.

Deployment of BPL has illustrated a number of fundamental challenges, the primary one being
that power lines are inherently a very noisy environment. The system must be designed to deal
with these natural signaling disruptions and work around them.

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Chapter 1
Current Status of Broadband Delivery

Broadband access and services are delivered using a variety of technologies, network
architectures and transmission methods. The most significant broadband technologies include:

• Digital Subscriber Line (DSL)

• Fiber Technologies
• Coaxial Cable
• Wireless
• BPL (Broadband Over Power Lines)

The use of fast Internet connections has grown rapidly over the last few years. Currently, Coaxial
Cable (Cable Modems) and Asymmetric Digital Subscriber Line (ADSL) dominate the industry.
Table 1 shows a comparison of the various access technology options.

Table 1
Access Technology Options

Max
Technology Remarks
Speeds
Satellite 500 Kbps Requires clear view to the south
Weather can affect reception

BPL 5 Mbps Same speed for Upload/Download

Number of users affect speed

DSL 8 Mbps Limited to within 18,000 ft of DSL central station

equipment

Coaxial Cable 30 Mbps Number of users affect speed

Fiber Optic Cable 1 Gbps High costs to deploy

The following is a detailed description of each of the above referenced access technologies.

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Digital Subscriber Line (DSL)

DSL is a high-speed connection to Internet that uses the same wires as a regular telephone line.
A standard telephone installation in the United States consists of a pair of copper wires. This pair
of copper wires has sufficient bandwidth for carrying both data and voice. Voice signals use only
a fraction of the available capacity on the wires. DSL exploits this remaining capacity to carry
information on the wire without affecting the line’s ability to carry voice conversations.

Standard phone service limits the frequencies that the switches, telephones and other equipment
can carry. Human voices, speaking in normal conversational tones, can be carried in a frequency
range of 400 to 3,400 Hertz. In most cases, the wires themselves have the potential to handle
frequencies of up to several-million Hertz. Modern equipment that sends digital data can safely
use much more of the telephone line’s capacity, and DSL does just that.

Advantages of DSL

• Simultaneous Use - Phone line can be used for voice calls and the Internet connection at
the same time.
• A much higher speed when compared to regular modem (up to 8 Mbps vs. 56 Kbps).
• Does not necessarily require new wiring, the existing phone line can be used.
• Providers generally include modem as part of the installation.

Limitations of DSL

• The quality of connection depends upon the proximity to the provider’s central office,
closer the better.
• Receiving data is faster than sending data over the internet.
• DSL is not available everywhere.

There are several variations of DSL technology. Often the term “xDSL”, where “x” is a variable,
is used to discuss DSL in general. Listed below are descriptions of eight different versions of
DSL.

1. Asymmetric DSL (ADSL)

It is called “asymmetric” because the download speed is greater than the upload speed. ADSL
works this way because most Internet users look at, or download, much more information than
they send, or upload.

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2. High bit-rate DSL (HDSL)

Providing transfer rates comparable to a T1 line HDSL receives and sends data at the same
speed, but it requires two lines that are separate from a normal phone line.

3. ISDN DSL (ISDL)

Geared primarily toward existing users of Integrated Services Digital Network (ISDN), ISDL is
slower than most other forms of DSL, operating at fixed rate of 144 Kbps in both directions. The
advantage for ISDL customers is that they can use their existing equipment, but the actual speed
gain is typically only 16 Kbps (ISDN runs at 128 Kbps).

4. Multi-Rate Symmetric DSL (MSDSL)

This is Symmetric DSL that is capable of more than one transfer rate. The transfer rate is set by
the service provider, typically based on the service (price) level.

5. Rate Adaptive DSL (RADSL)

This is a popular variation of ADSL that allows the modem to adjust the speed of the connection
depending on the length and quality of the line.

6. Symmetric DSL (SDSL)

Like HDSL, this version receives and sends data at the same speed. While SDSL also requires a
separate line from the phone, it uses only a single line instead of the two used by HDSL.

7. Very high bit-rate DSL (VDSL)

An extremely fast connection, VDSL is asymmetric, but only works over a short distance using
standard copper phone wiring.

8. Voice-over DSL (VoDSL)

A type of IP Telephony, VoDSL allows multiple phone lines to be combined into a single phone
line that also includes data-transmission capabilities.

Table 2 is a summary of the DSL variations and how they compare.

Table 2
DSL Technologies Comparison
DSL Type Sending Receiving Effective Lines
Speed Speed Distance Required

ADSL 800 Kbps 8 Mbps 18,000 ft 1

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HDSL 1.54 Mbps 1.54 Mbps 12,000 ft 2

IDSL 144 Kbps 144 Kbps 35,000 ft 1

MS DSL 2 Mbps 2 Mbps 29,000 ft 1

RA DSL 1 Mbps 7 Mbps 18,000 ft 1

SDSL 2.3 Mbps 2.3 Mbps 22,000 ft 1

VDSL 16 Mbps 52 Mbps 4,000 ft 1

Most homes and small business users are connected to an asymmetric DSL (ADSL) line. ADSL
divides up the available frequencies in a line on the assumption that most Internet users
download, much more information than they send, or upload. Under this assumption, if the
connection speed from the Internet to the user is three to four times faster than the connection
from the user back to the Internet, then the user will see the most benefit.

Precisely how much benefit a user will see depends on how far the user is from the central office
of the company providing the ADSL service. ADSL is a distance-sensitive technology: As the
connection’s length increases, the signal quality decreases and the connection speed goes down.
The limit for ADSL service is 18,000 feet, though for speed and quality of service many ADSL
providers place a lower limit on the distances for the service. At the extremes of the distance
limits, ADSL customers may see speeds far below the promised maximums, while customers
nearer the central office have faster connections.

ADSL technology can provide maximum downstream (Internet to customer) speeds of up to 8

megabits per second (Mbps) at a distance of about 6,000 feet, and upstream speeds of up to 640
kilobits per second (Kbps). In practice, the best speeds widely offered today are 1.5 Mbps
downstream, with upstream speeds varying between 64 and 640 Kbps.

Distance is a limitation for DSL but not for voice telephone calls. This is because the voice
signals are amplified with loading coils. These loading coils are incompatible with ADSL
signals, so a voice coil in the loop between a telephone and the telephone company’s central
office will disqualify a user from receiving ADSL. Other factors that might disqualify a user
from receiving ADSL include:

• Bridge taps - These are extensions, between the user and the central office, that extend
service to other customers. While the users would not notice these bridge taps in normal
phone service, they may take the total length of the circuit beyond the distance limits of
the service provider.

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• Fiber-optic cables - ADSL signals cannot pass through the conversion from analog to
digital and back to analog that occurs if a portion of a telephone circuit comes through
fiber-optic cables.

ADSL uses two pieces of equipment, one on the customer end and one at the provider end:

1. At the customer’s location, there is a DSL transceiver, which may also provide other
services. Most residential customers call their DSL transceiver a DSL modem. However
the correct term is an “ATU-R”, which stands for ADSL Transceiver Unit - Remote.
Regardless of what it is called, the transceiver is the point where data from the user’s
computer or network is connected to the DSL line. The transceiver can connect to a
customer’s equipment in several ways, though most residential installations use Universal
Serial Bus (USB) or 10BaseT Ethernet connections. Most of the ADSL transceivers are
simply transceivers, but the devices may combine network routers, network switches or
other networking equipment in the same box.

2. The DSL service provider has a DSL Access Multiplexer (DSLAM) to receive customer
connections. The DSLAM at the access provider is the equipment that enables DSL. A
DSLAM takes connections from many customers and aggregates them onto a single,
high-capacity connection to the Internet. DSLAMs are generally flexible and able to
support multiple types of DSL, as well as provide additional functions such as routing
and dynamic IP address assignment for customers. VDSL is seen by many as the next
step in providing a complete home communications/ entertainment package.

VDSL operates over the copper wires in much the same way that ADSL does, but there are a
couple of distinctions. VDSL can achieve incredible speeds, as high as 52 Mbps downstream and
16 Mbps upstream. That is much faster than ADSL, which provides up to 8 Mbps downstream
and 800 Kbps upstream. However, VDSL’s is distance sensitive. It can only operate over the
copper line for a short distance, about 4,000 feet.

Compared to a maximum speed of 8 Mbps for ADSL or cable modem, it is clear that the move
from current broadband technology to VDSL could be as significant as the migration from a 56K
modem to broadband. However, the key to VDSL is that the telephone companies are replacing
many of their main feeds with fiber-optic cable. Some phone companies are planning Fiber to
the Curb (FTTC), which means that they will replace all existing copper lines right up to the
point where a phone line branches off to a house. Most companies expect to implement Fiber to
the Neighborhood (FTTN). Instead of installing fiber-optic cable along each street, FTTN has
fiber going to the main junction box for a particular neighborhood.

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By placing a VDSL transceiver in a home and a VDSL gateway in the junction box, the distance
limitation is overcome. The gateway takes care of the analog-digital-analog conversion problem
that disables ADSL over fiber-optic lines. It converts the data received from the transceiver into
pulses of light that can be transmitted over the fiber-optic system to the central office, where the
data is routed to the appropriate network to reach its final destination. When data is sent back to
the computer, the VDSL gateway converts the signal from the fiber-optic cable and sends it to
the transceiver.

Coaxial Cable

Cable modems allow subscribers to access high-speed data services over cable systems that are
generally designed with hybrid fiber-coaxial (HFC) architecture. Cable modem service is
primarily residential, but may also include some small business service.

Cable modems compete with technologies like Asymmetrical Digital Subscriber Lines (ADSL).
Following is a look at how a cable modem works and how cable television channels and web
sites can flow over a single coaxial cable.

In a cable TV system, signals from the various channels are each given a 6-MHz slice of the
cable’s available bandwidth and then sent down the cable to the house. The coaxial cable used to
carry cable television can carry hundreds of megahertz of signals and therefore, a large number
of channels. In some systems, coaxial cable is the only medium used for distributing signals. In
other systems, fiber-optic cable goes from the cable company to different neighborhoods or
areas. Then the fiber is terminated and the signals move onto coaxial cable for distribution to
individual houses.

When a cable company offers Internet access over the cable, Internet information can use the
same cables because the cable modem system puts downstream data—data sent from the Internet
to an individual computer—into a 6-MHz channel. On the cable, the data looks just like a TV
channel. So Internet downstream data takes up the same amount of cable space as any single
channel of programming. Upstream data—information sent from an individual back to the
Internet—requires even less of the cable’s bandwidth, just 2 MHz, since the assumption is that
most people download far more information than they upload.

Putting both upstream and downstream data on the cable television system requires two types of
equipment: a Cable Modem on the customer end and a Cable Modem Termination System
(CMTS) at the cable provider’s end. Between these two types of equipment, all the computer
networking, security and management of Internet access over cable television is put into place.

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The first users to connect to the Internet through a particular cable channel have virtually the
entire bandwidth of the channel available for their own use. The disadvantage of coaxial cable
however, is as new users, especially heavy-access users, are connected to the channel all users
will have to share bandwidth, and may see performance degrade as a result. It is possible that, in
times of heavy usage with many connected users, performance will be far below the theoretical
maximums. The cable company can resolve this particular performance issue by adding a new
channel and splitting the base of users.

Another benefit of the cable modem for Internet access is that, unlike ADSL, its performance
does not depend on distance from the central cable office. A digital CATV system is designed to
provide digital signals at a particular quality to customer households. On the upstream side, the
burst modulator in cable modems is programmed with the distance from the head-end, and
provides the proper signal strength for accurate transmission.

Cable industry has extended the broadband services offering to over 90 percent of homes passed
by cable systems. The cable industry expects that industry-wide facilities upgrades enabling the
provision of broadband Internet access to residential customers will be completed in the near
future.

Fiber Technologies

In recent years, carriers have begun constructing entirely fiber optic cable transmission facilities
that run from a distribution frame in an incumbent local exchange carrier’s (ILEC’s) central
office to the loop demarcation point at an end-user customer premise. These loops are referred to
as fiber-to-the-home (FTTH) loops. FTTH technology offers substantially more capacity than
any copper-based technology. One example is a company that has a FTTH system today using
commercially available equipment that delivers transmission speeds up to 500 Mbps shared over
a maximum of 16 subscribers. This system can also provide up to 500 Mbps symmetrically to
one subscriber if desired. The speed an actual user will experience depends upon the time of day
and the number of users online. A typical FTTH system can deliver up to 870 MHz of cable
television video services or IP video services along with multiple telephone lines and current and
next-generation data services at speeds in excess of 100 Mbps.

There are three basic types of architectures being used to provide FTTH. The most common
architecture used is Passive Optical Network (PON) technology. This technology allows multiple
homes to share a passive fiber network. In this type of network, the plant between the customer
premises and the head-end at the central office consists entirely of passive components – no
electronics are needed in the field. The other architectures being used are Home Run Fiber or

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Point-to-Point Fiber, in which subscribers have a dedicated fiber strand, and active or powered
nodes are used to manage signal distribution, and hybrid PONs, which are a combination of
home run and PON architecture.

Although FTTH technology is still in its infancy, the deployment of FTTH is growing
significantly. Also, the equipment costs for FTTH have decreased significantly. In addition to
FTTH technologies, some carriers are constructing fiber-to-the-curb (FTTC) facilities that do not
run all the way to the home, but run to a pedestal located within 500 feet of the subscriber
premises. Copper lines are then used for the connection between the pedestal and the network
interface device at the customer’s premises. Because of the limited use of copper, FTTC
technologies permit carriers to provide high-speed data in addition to high definition video
services.

Wireless

Wireless broadband alternatives include unlicensed wireless such as WiFi and WiMax, Fixed
Wireless, such as MMDS and LMDS, and Satellite delivery systems.

Unlicensed Wireless
Since the FCC first allocated spectrum in the 902-928 MHz band for use on an unlicensed basis
there has been an increasingly rapid expansion of products and markets in bands designated for
unlicensed use. This Industrial, Scientific, and Medical (ISM) band was the first to experience
the large-scale introduction of devices such as cordless phones, security alarms, wireless bar
code readers, and data collection systems. A number of original equipment manufacturers
continue to provide equipment for point-to-point and point-to-multipoint systems for such
applications as Supervisory Control and Data Acquisition (SCADA). In addition, there are
several providers of wireless local area network equipment in this band.

Wi-Fi, short for Wireless Fidelity, is a term that is used generically to refer to any product or
service using the 802.11 series standards developed by the Institute of Electrical and Electronics
Engineers (IEEE) for wireless local area network connections. Wi-Fi networks operate on an
unlicensed basis in the 2.4 and 5 GHz radio bands and provide multiple data rates up to a
maximum of 74 Mbps. The bandwidth is shared among multiple users. Wi-Fi enabled wireless
devices, such as laptop computers and smart phones, can send and receive data from any location
within signal reach of a Wi-Fi equipped base station or access point (AP). Typically, mobile
devices must be within approximately 300 feet of a base station.

The Wi-Fi technology features a creation of a “wireless cloud” that covers a hot-spot area. The
specific dimensions of the coverage area vary based on environmental and power specifications
of the equipment in use. Typically, coverage radius is in the range of 300-500 feet.

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Environmental conditions, like weather and line of site, can affect the ability to reach target
customers.

With the expansion of Wi-Fi access to the Internet there has been a rapid growth of hot-spots.
Networks of hot-spots consisting of many access points have been constructed to cover larger
areas such as airports.

The IEEE 802.11 wireless LAN standards describe five radio link interfaces that operate in the
2.4 GHz or 5 GHz unlicensed radio bands. These are summarized in Table 3.

Table 3
IEEE 802.11 WLAN Radio Link Interfaces and Highlights
Max Bit Typical
Standard Frequency Remarks
Rate Rates
802.11 2Mbps 1 Mbps 2.4 GHz -
Short range
802.11a 54 Mbps 23 Mbps 5 GHz Not compatible with 802.11b
Doesn’t penetrate walls well.
802.11b 11 Mbps 4.5 Mbps 2.4 GHz -
Compatible with 802.11b
802.11g 54 Mbps 19 Mbps 2.4 GHz
Strong signal delivery
802.11n 300 Mbps 74 Mbps 2.4/5.0 GHz -

Wireless Local Area Networks (LANs) based on the IEEE 802.11 or Wi-Fi standards have been
quite successful, and therefore the focus in wireless is moving towards the wide area. While
WiFi dominates in the local area, the wide area market is still very much open.

The cellular carriers got into this market first with their 2.5G/3G data services, but they were
positioned to offer essentially add-on to voice service. The real competition to cellular data
services may come from emerging data-oriented technology, WiMax.

Worldwide Interoperability for Microwave Access, or WiMax, refers to any broadband wireless
access network based on the IEEE 802.16 standards.

WiMax includes fixed systems employing a point-to-multipoint architecture operating between 2

GHz and 66 GHz. WiMax based broadband wireless access (BWA) or, also known as wireless
DSL, will offer data rates between 512 Kbps and 1 Mbps. The key will be to deliver low-cost,

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indoor, user installable premises devices that will not have to be aligned with the base station i.e.,
the antenna in the premises equipment would be integrated with the radio modem.

WiMax is designed to deliver a metro area broadband wireless access (BWA) service. The idea
behind BWA is to provide a fixed location wireless Internet access service to compete with cable
modems and DSL. WiMax systems could support users at ranges up to 30 miles and is intended
as the basis of a carrier service.

The WiMax standards include a much wider range of potential implementation to address the
requirements of carriers around the world. The original version of the 802.16 standard, when
released addressed systems operating in the 10 GHz to 66 GHz frequency band. Such high
frequency systems require line-of-sight (LOS) to the base station, which increases cost and limits
the customer base. Also, in LOS systems, customer antennas must be realigned when a new cell
is added to the network. Since the initial release, the 802.16a standard has changed the playing
field. The standard 802.16a describes systems operating between 2 GHz and 11 GHz. These
lower frequency bands support non-line-of-sight (NLOS), thereby eliminating the need to align
the customer unit with the base station. Table 4 presents a summary of WiMax (802.16) radio
links.

Table 4
Summary of WiMax (802.16) Radio Links
Channel Cell
Configuration Bit Rate
Standard Spectrum Mobility Bandwidth Radius
Line of Sight (Mbps)
(MHz) (Miles)
802.16 10-66 GHz Yes 32-134 Fixed 20, 25, 28 1-3
1.25 – 20
802.16a 2 – 11 GHz No 74 Fixed 3-5
Selectable
1.25-20
802.16e < 6 GHz No < 15 < 75 MPH With sub- 1-3
channels

Wi-Fi implementations use unlicensed frequency bands. WiMax, on the other hand can operate
in either licensed or unlicensed spectrum. Within 802.16a’s frequency range (2-11 GHz), there
are four bands that are especially attractive:

• Licensed 2.5 GHz MMDS: The FCC has allocated 200 MHz of licensed radio spectrum
between 2.5 – 2.7 GHz for Multichannel Multipoint Distribution Service (MMDS).

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• Licensed 3.5 GHz Band: A band of licensed spectrum approximately equal to MMDS has
been allocated in the 3.4 to 3.7 GHz range in most of the world.

• Unlicensed 3.5 GHz Band: The FCC has opened an additional 50 MHz of unlicensed
spectrum in the 3.65 to 3.7 GHz range for fixed location wireless services.

• Unlicensed 5 GHz U-NII Band: In the U.S., 555 MHz of unlicensed frequency has been
allocated in the 5.15 to 5.35 GHz and 5.47 to 5.825 GHz bands. This spectrum is called
the Unlicensed National Information Infrastructure (U-NII) band, the same band used for
802.11a wireless LANs.

Wi-Fi and WiMax represent wireless applications from two completely different perspectives.
Wi-Fi is a local network technology designed to add mobility to private wired LANs. WiMax, on
the other hand, is designed to deliver a metro area broadband wireless access (BWA) service.

The idea behind BWA is to provide a fixed location wireless Internet access service to compete
with cable modems and DSL. While Wi-Fi supports transmission ranges up to a few hundred
feet, WiMax systems could support users at ranges up to 30 miles. While Wi-Fi is targeted at the
end-user, WiMax is intended as the basis of a carrier service. Besides the difference in
transmission range, there are a number of improvements in the radio link technology that
separate WiMax from Wi-Fi. Table 5 presents a comparison of Wi-Fi and WiMax Technologies.

Table 5
A comparison of WiMax and Wi-Fi

Wi-Fi Wi-Fi Wi-Fi Wi-Fi WiMaz

(802.11a) (802.11b) (802.11g) (802.11n) (802.16a)

Primay Wireless Wireless Wireless Wireless Broadband

Application LAN LAN LAN LAN Wireless

2.4 – 5.0 2 GHz

5 GHz 2.4 GHz 2.4 GHz (licensed)
Frequency GHz
U-NII U-NII U-NII 11 GHz
U-NII
(un-licensed)
Bandwidth 20 MHz 25 MHz 20 MHz 20/40 MHz 1.25 – 20 MHz

Duplex Half Half Half Half Full

Technology OFDM Direct OFDM OFDM OFDM*

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(64-channels) Sequence (64-channels) (256-channels)

Spread
Spectrum

In In In In
Mobility Mobile WiMax
Development Development Development Development

Fixed Wireless Technologies

Point-to-point microwave connections have a long history in the backhaul networks of phone
companies, cable TV companies, utilities and government agencies. In recent years, technology
has advanced to enable higher frequencies and smaller antennas. This has resulted in lower cost
systems that could be sold by carriers for the last mile of communications.

Multi-channel multipoint distribution service (MMDS) is located at 2.5GHz and was initially
used to distribute cable television service. Now MMDS is being developed for residential
Internet service.

MMDS wireless technology can be deployed to offer “two-way” service at throughputs ranging
from 64 kbps to 10Mbps. However, MMDS systems require line of sight between transmitter and
receiver. The lower MMDS frequencies (2 GHz) do not attenuate very quickly and services can
be provided at up to 30 miles from the hub, equivalent to coverage of approximately 2,800
square miles. This is one of the largest coverage areas of any point-to-multipoint
communications system available today.

Local multipoint distribution service (LMDS) is located in the bands of 27.5GHz to 28.35 GHz,
29.1GHz to 29.25 GHz and 31GHz to 31.3 GHz and is being used for point-to-multipoint
applications similar to the 39GHz band - Internet access and telephony. LMDS, though, only has
a 3-mile coverage radius and uses TDMA (Time-Division Multiple Access) so that multiple
customers can share the same radio channel.

The technology uses a cellular like network architecture of microwave radios placed at the
client’s location and at the company’s base station to deliver fixed services, mainly telephony,
video and Internet access. The use of time-division multiple access (TDMA) and frequency-
division multiple access (FDMA) technologies allows multiple customers within a 3-5 mile
coverage radius to share the same radio channel. Customers can receive data rates between
64kbps to 155Mbps.

An LMDS system consists of four parts:

1. The network operations center (NOC) houses the network management system (NMS)
equipment that manages large regions of the customer network.

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2. A fiber-based infrastructure connects separate NOCs.

3. The base station, usually located on a cellular tower, is where the conversion from fiber
infrastructure to wireless infrastructure occurs.
4. The customer premises equipment (CPE) typically includes microwave equipment
mounted on the outside of a consumer’s home or business as well as equipment located
within the building, providing modulation, demodulation, control, and interface
functionality.

Advantages of LMDS include:

• Low entry and deployment costs - Due to the fact that a large part of a wireless network’s
cost is not incurred until the CPE is installed, the operator is able to stage capital
expenditures gradually with new customer acquisition.
• Speed of deployment - A fiber-less network requires no only a radio at the customer’s
location and another one on a tower in a central location. This enables a quicker
deployment schedule than most broadband services.
• Demand-based build out - LMDS uses a scalable architecture combined with industry
standards to ensure service can be expanded as customer demand increases.
• Variable component cost - Most wireline systems require a large capital investment for
the infrastructure component. LMDS systems shift the cost to the CPE, which means the
operator only spends money when a revenue-paying customer signs on.

Limitations of LMDS:

• The system requires line-of-site (LOS) between the CPE and base station hub. This could
require the use of repeaters to forward signals over obstacles.
• LMDS signals are affected by moisture, which could result in “rain fade,” or the
disruption of signals as a result of heavy rain. Increasing the power used to transmit the
signals can usually alleviate problems associated with rain fade.

Satellite Delivery Systems

Satellite Internet access is ideal for rural Internet users who want broadband access. Satellite
Internet does not use telephone lines or cable systems, but instead uses a satellite dish for two-
way data communications. Upload speed is about one-tenth of the 500 kbps download speed.

Two-way satellite Internet consists of approximately a two-foot by three-foot dish, two modems,
and coaxial cables between dish and modem. The key installation-planning requirement is a clear
view to the south, since the orbiting satellites are over the equator area. And, like satellite TV,
trees and heavy rains can affect reception of the Internet signals.

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Two-way satellite Internet uses Internet Protocol (IP) multicasting technology, which means that
a maximum of 5,000 channels of communication can simultaneously be served by a single
satellite. IP multicasting sends data from one point to many points (at the same time) in a
compressed format. Compression reduces the size of the data and the bandwidth. Usual dial-up
land-based terrestrial systems have bandwidth limitations that prevent multicasting of this
magnitude.

The satellite data downlink is just like the usual terrestrial link, except the satellite transmits the
data to the user via the same dish that used to receive TV signals. An example of a satellite
delivery system is shown in Figure 1. As you can see in this figure, a second satellite is used to
provide the data path to the Internet.

Figure 1

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Chapter 2
Broadband over Powerline Technology

BPL is also sometimes called Power-line Communications or PLC and many people use the
terms PLC and BPL interchangeably. The FCC has chosen to use the term “broadband over
power line” for consumer applications. In order to make use of BPL the subscriber just installs
a modem that plugs into an ordinary wall outlet and pays a subscription fee similar to those paid
for other types of Internet service.

By combining the technological principles of radio, wireless networking, and modems,

developers have created a way to send data over power lines and into homes at speeds equivalent
to those of DSL and cable. By modifying the current power grids with specialized equipment, the
BPL developers could partner with power companies and Internet service providers (ISPs) to
bring broadband to everyone with access to electricity.

BPL technology has the ability to enable electric power lines to function as a “third wire” into
the home, and create competition with the copper telephone line and cable television coaxial
cable line. BPL is categorized as either Access BPL or In-Home BPL and they are defined as,

• Access BPL is a technology that provides broadband access over medium voltage power
lines.

• In-house BPL is a home networking technology that uses the transmission standards
developed by the HomePlug Alliance. In-house BPL products can comply relatively
easily with the radiated emissions limits in the FCC’s Rules, because the products
connect directly with the low voltage electric lines inside a home or office.

Access BPL is used over what is called the “middle mile” and “last mile” of a
telecommunications circuit. This is the portion of the network that connects end users, such as
homes and business, to high-speed services and the Internet. For residential broadband service
customers who get cable modem service, for example, the drop wire connecting the interface on
a house to the cable company network and the wire from the interface connecting to the wall
plates in the home would all be part of the last mile.

BPL modems use electronics designed to send signals over electric power lines, much like cable
and DSL modems send signals over cable and telephone lines. Advances in processing power
have enabled new BPL modems to overcome difficulties in sending communications signals over
the electric power lines.

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Overview of BPL

At a high-level, a powerline telecom network consists of three key segments, the backbone, the
middle mile, and the last mile as shown below in Figure 2.

Figure 2

From the end user’s perspective, BPL technology works by sending high-speed data along
medium or low voltage power lines into the customer’s home. The signal traverses the network
over medium and low voltage lines either through the transformers or by-passes the transformer
using bridges or couplers. The technology transports data, voice and video at broadband speeds
to the end-user’s connection. The user only needs to plug an electrical cord from the “BPL
modem” into any electrical outlet then plug an Ethernet or USB cable into the Ethernet card or
USB interface on their PC. The data signal can also interconnect with wireless, fiber or other
media for backhaul and last mile completion. The actual hardware used for the deployment
varies by manufacturer but typically feature some common characteristics.

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The Internet is a huge network of networks that are connected through cables, computers, and
wired and wireless devices worldwide. Typically, large Internet Service Providers (ISPs) lease
fiber-optic lines from the phone company to carry the data around the Internet and eventually to
another medium – such as, phone, DSL or cable line - into the homes. Trillions of bytes of data a
day are transferred on fiber-optic lines because they are a stable way to transmit data without
interfering with other types of transmissions.

The idea of using AC (alternating current) power to transfer data is not new. By bundling radio-
frequency (RF) energy on the same line with an electric current, data can be transmitted without
the need for a separate data line. Because the electric current and RF vibrate at different
frequencies, the two don’t interfere with each other. Electric utilities have used this technology
for years to monitor the performance of power grids. There are even networking solutions
available today that transfer data using the electrical wiring in a home or business. But this data
is fairly simple and the transmission speed is relatively slow.

There are several different approaches to overcoming the hurdles presented when transmitting
data through power lines. The power lines are just one component of electric companies' power
grids. In addition to lines, power grids use generators, substations and transformers that deliver
electricity from the power plant all the way to a plug in the wall. Figure 3 shows an overview of
an electric power system in the United States. When power leaves the power plant, it travels to a
transmission substation and is then distributed to high-voltage transmission lines. When
transmitting broadband, these high-voltage lines represent the first hurdle.

Figure 3
The transmission voltages are in the range of 100,000 to 765,000 volts. This voltage level is
unsuitable for data transmission. It's too "noisy." In order for data to transmit cleanly from point
to point, it must have a dedicated band of the radio spectrum at which to vibrate without
interference from other sources.

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Hundreds of thousands of volts of electricity don't vibrate on just one frequency. That amount of
power jumps all over the spectrum. As it spikes and hums along, it creates all kinds of
interference. If it spikes at a frequency that is the same as the RF used to transmit data, then it
will cancel out that signal and the data transmission will be dropped or damaged en route.

BPL bypasses this problem by avoiding high-voltage power lines all together. The system drops
the data off of traditional fiber-optic lines downstream, onto the much more manageable
7,200/12,470 volts of medium-voltage power lines.

Once dropped onto the medium-voltage lines, the data can only travel so far before it degrades.
To counter this, devices are installed on the lines to act as repeaters. The repeaters take in the
data and repeat it in a new transmission, amplifying it for the next leg of the journey.

In one model of BPL, two other devices are on the power poles to distribute Internet traffic. The
Extractor allows the data on the line to bypass transformers, and the
Bridge, a device that facilitates carrying the signal into the homes

The transformer's job is to reduce the 7,200 volts down to the 120/240-
volt standard that makes up normal household electrical service. It is
difficult for low-power data signals to pass through a transformer, so a
coupler is needed to provide a data path around the transformer. With the
coupler, data can move easily from the 7,200-volt line to the 120/240-
volt line and into the house without any degradation.

The last mile is the final step that carries Internet into the
subscriber's home or office.

In the various approaches to last-mile solutions for BPL,

some companies carry the signal in with the electricity
on the power line, while others put wireless links on the
poles and send the data wirelessly into homes. A Bridge
device facilitates both.

The signal is received by a powerline modem that plugs

into the wall. The modem sends the signal to the in-
Figure 4 home electrical devices.

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BPL modems use silicon chipsets specially designed to handle the work load of pulling data out
of an electric current. Using specially developed modulation techniques and adaptive algorithms,
BPL modems are capable of handling powerline noise on a wide spectrum.

As shown in Figure 4, a BPL modem is plug-and-play and is roughly the size of a common
power adapter. It plugs into a common wall socket, and an Ethernet cable running to the
computer finishes the connection. Wireless versions are also available.

BPL Architecture

Access BPL equipment consists of injectors (also known as concentrators), repeaters, and
extractors. BPL injectors are tied to the Internet backbone via fiber or T1 lines and interface to
the medium voltage power lines feeding the BPL service area. Medium voltage power lines may
be overhead on utility poles or buried underground.

Overhead wiring is attached to utility poles that are typically 35 feet above the ground. Three
phase wiring generally comprises a medium voltage distribution circuit running from a
substation, and these wires may be physically oriented on the utility pole in a number of
configurations (e.g., horizontal, vertical, or triangular). This physical orientation may change
from one pole to the next. One or more phase lines may branch out from the three phase lines to
serve a number of customers. A grounded neutral conductor is generally located below the phase
conductors and runs between distribution transformers that provide low voltage electric power
for customer use. In theory, BPL signals may be injected onto medium voltage power lines
between two phase conductors, between a phase conductor and the neutral conductor, or onto a
single phase or neutral conductor.

The following is a description of some of the

equipment used to provision BPL.

Inductive couplers are used to connect BPL modems

to the medium voltage power lines. See Figure 5.
An inductive coupler transfers the communications
signal onto the power line by wrapping around the Figure 5
line, without directly connecting to the line. A major
challenge is how to deliver the signal from the medium voltage line to the low voltage line that
enters the house since the transformer that lowers the electric power from around 7,200 volts
down to 120/240-volts is a potential barrier to the broadband signal.

A Router is a device that acts as an interface between two networks and provides network
management functions.

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A Repeater is a physical-layer hardware device used on a network to extend the length, topology,
or interconnectivity of the physical medium beyond that imposed by a single segment. See
Figure 6.

A Concentrator/Injector is a device that aggregates the end-

user CPE data onto the medium voltage grid. Injectors are tied
to the Internet backbone via fiber of T1 lines and interface to
the medium voltage power lines feeding the BPL service area.

Figure 6 Extractors (also known

at customer access units)
provide the interface between the medium voltage power
lines carrying BPL signals and the households within the
service area. BPL extractors are usually located at each
low-voltage distribution transformer feeding a group of
homes. Some extractors boost BPL signal strength
sufficiently to allow transmission through low-voltage Figure 7
transformers and others relay the BPL signal around the
transformers via couplers on the proximate medium voltage and low-voltage power lines. Other
kinds of extractors interface with non-BPL devices (e.g., WiFi) that extend the BPL network to
the customers’ premises. See Figure 7.

There are a number of types of BPL systems, using different approaches and architecture. All are
Carrier-Current systems, a term used to describe systems that intentionally conduct signals over
electrical wiring or power lines.

Part 15 of the FCC’s Rules governs interference issues between unlicensed devices, including
BPL modems, and other electronic devices. All electronic devices sold in the U.S. have to meet
FCC radio frequency (RF) emissions limits. When BPL modems are installed on underground
electric lines, the communications signal is shielded by the conduit and the earth and as a result
is unlikely to cause interference to other communications services. The FCC is more concerned
about the interference potential of BPL signals transmitted on exposed, overhead medium
voltage power lines.

For long runs of power lines, signal attenuation or distortion through the power line may lead
BPL service providers to employ repeaters to maintain the required BPL signal strength and
fidelity. Figure 8 illustrates the basic BPL system, which can be deployed in cell-like fashion
over a large area served by existing medium voltage power lines. Medium voltage lines, typically
carrying 7,200 – 34,500 volts, bring power from an electrical substation to a residential

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neighborhood. Low voltage distribution transformers step down the line voltage to 240/120 volts
for residential use.

Figure 8

There are three different network architectures used by BPL equipment vendors. These
architectures are described below.

Architecture 1 - OFDM
This architecture employs Orthogonal Frequency Division Multiplexing (OFDM) to distribute
the BPL signal over a wide bandwidth
Orthogonal frequency-division multiplexing (OFDM) is
using many narrow-band sub-carriers. At a frequency-division multiplexing (FDM) scheme used as a
the BPL injector, data from the Internet digital multi-carrier modulation method. A large number of
backbone is converted into the OFDM closely spaced orthogonal sub-carrier signals are used to
carry data on several parallel data streams or channels.
signal format and is then coupled onto Each sub-carrier is modulated with a conventional
one phase of the medium voltage power modulation at a low symbol rate, maintaining total data
line. An injector also converts BPL rates similar to conventional single-carrier modulation
schemes in the same bandwidth.
signals on the medium voltage power

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lines to the format used at the Internet backbone connection. The two-way data are transferred to
and from the low-voltage lines, each feeding a cluster of homes, using BPL extractors to bypass
the low-voltage distribution transformers. The extractor routes data and converts between access
and in-house BPL signal formats. The subscribers access this BPL signal using in-house BPL
devices. To span large distances between a BPL injector and the extractors it serves, repeaters
may be employed. See Figure 9.

Figure 9

The injector and extractors share a common frequency band (F1) on the medium voltage power
lines, different than the frequency band (F2) used on the low-voltage lines by the subscriber’s in-
house BPL devices. In order to minimize contention for the channel, Carrier Sense Multiple
Access (CSMA) is used with Collision Avoidance (CA) extensions. This type of system is
designed to accept some amount of co-channel interference between quasi-independent BPL
cells without the use of isolation filters on the power lines, as all devices on the medium voltage
lines operate over the same frequency band. The BPL signal may be sufficiently tolerant of co-
channel BPL interference to enable implementation of two or three of these systems
independently on adjacent medium voltage power lines. This system couples BPL signals into
one phase line.

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Architecture 2 – OFDM/WiFi

The OFDM/WiFi model uses OFDM as its modulation scheme, but differs from the first model
in the way it delivers the BPL signal to the subscribers’ homes. Instead of using a device that
uses Low-voltage power lines, this model extracts the BPL signal from the medium voltage
power line and converts it into an IEEE 802.11 WiFi signal for a wireless interface to
subscribers’ home computers as well as local portable computers (see Figure 10). Technologies
other than WiFi might also be used to interface to subscribers’ devices with the BPL network,
the important point being that BPL is not used on low-voltage power lines.

Figure 10

This system uses different radio frequency bands to separate upstream and downstream BPL
signals, and to minimize co-channel interference with other nearby access BPL devices. To span
large distances between a BPL injector and the extractors it serves, repeaters may be employed.

Like the injectors, BPL repeaters transmit and receive on different frequencies, and they use
different frequencies from those used by the injector and other nearby repeaters. Repeaters may
also provide the capabilities of an extractor when outfitted with a WiFi transceiver. This model
couples BPL signals onto one phase of the medium voltage power line.

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Architecture 3 - DSSS
This model uses Direct Sequence Spread Spectrum (DSSS) to transmit the BPL data over the
medium voltage power lines. All users within a BPL cell share a common frequency band. In
order to minimize contention for the channel, Carrier Sense Multiple Access (CSMA) is used.

Like the first model, this type of system is Direct-sequence spread spectrum (DSSS) is a
designed to accept some amount of co- modulation technique where the transmitted signal
takes up more bandwidth than the information
channel interference between cells, as all
signal that modulates the carrier or broadcast
devices operate over the same frequency frequency. The name 'spread spectrum' comes
band. Each cell in the system (see Figure 11) from the fact that the carrier signals occur over the
full bandwidth (spectrum) of a device's
is comprised of a concentrator (injector) that transmitting frequency.
provides an interface to a T1 or fiber link to
the Internet backbone, a number of repeaters (extractors) to make up for signal losses in the
electric power line and through the distribution transformers feeding clusters of dwellings, and
customer premises BPL equipment, used to bridge between the user’s computer and the electrical
wiring carrying the BPL signal. Adjacent cells typically overlap and the customers’ BPL
terminals and repeaters are able to communicate with the concentrator that affords the best
communication path at any time.

Figure 11

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This system couples the BPL signal onto the power line using a pair of couplers on a phase and
neutral line.

Future Systems
BPL manufacturers and service providers anticipate a wide range of applications that may be
offered to their subscribers. High quality, multi-channel video, audio, voice over Internet
Protocol (VoIP), and on-line gaming applications are expected to rapidly increase the demand for
additional bandwidth. To support the typical subscriber at 1 Mbps, BPL systems are expected to
operate at speeds of 100 Mbps or more on the medium voltage power lines in the future.

A number of BPL vendors have suggested use of frequencies up to 50 MHz At least one vendor
is considering use of 4 MHz to 130 MHz, while excluding frequencies that are actively in use by
licensed services. One solution put forward in an attempt to mitigate interference with licensed
services is to attenuate or “notch” BPL signals in frequency bands where licensed services are in
nearby use. Future BPL systems may be able to accomplish this automatically without system
operator intervention. To implement this solution while simultaneously maximizing the useable
bandwidth, BPL systems are expected to use new modulations that can support more subcarriers
that are more finely spaced.

As data rates and bandwidth requirements grow, the BPL systems may require operation at
greater transmitted power levels but not necessarily with higher power density than is used
today. BPL may employ techniques to dynamically adjust the power level to maintain a
minimum signal-to-noise ratio (SNR) over the entire BPL spectrum, while limiting emissions to
levels compliant with FCC Part 15 rules. One proposed solution is to adjust the transmitted
power to maintain a constant SNR across the BPL spectrum, with a hard limit based on Part 15
rules. The challenge will be to develop the control mechanism that can maximize transmitted
power while simultaneously limiting the radiated emissions, perhaps in conjunction with
frequency agility.

The judicious use of blocking filters will enable optimal segmentation of BPL networks into cells
of various sizes having low conducted co-channel interference from neighboring cells. This will
enable a greater level of frequency reuse than what is currently available.

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Chapter 3
BPL Business Model

The current focus of most electric utilities is using BPL for an intelligent electric distribution
grid. Power companies have often employed low-speed power line communication for their own
internal use—to monitor and control equipment in the power grid. This could result in lower
electric power costs, greater reliability and increased security.

Some electric utilities have considered entering the end-user BPL communications business
either singularly or with a telecommunications provider such as an ISP, a Competitive Local
Exchange Carrier (CLEC), or a long distance
company looking for an alternative last mile path to A competitive local exchange carrier
(CLEC), is a telecommunications provider
their customers.
company competing with other, already
established carriers such as an ILEC.
Each utility must assess BPL according to its own
business objectives, risk tolerance, and procedures. The factors to evaluate are cost, market size
and price, differentiating features of BPL, bundled services and average revenue per user, and
the utility applications. While broadband Internet access may be the primary application that is
the impetus for deployment of BPL networks, the range of potential applications using such a
communications network is enormous and needs to be considered as the business model is
developed.

The Broadband market is generally divided into the following categories though providers may
operate in one or more segments:

• The last mile: This is the portion of the network that connects end users, such as homes
and business, to high-speed services and the Internet. For residential broadband service
customers who get cable modem service, for example, the drop wire connecting the
interface on a house to cable company’s network and the wire from the interface
connecting to the wall plates in the home would all be part of the last mile.

• The middle mile: This portion of the network consists of high-speed fiber backbones and
other “middle-mile pipes” that connect computers to networks, connect those networks
into the complex that constitutes the Internet, and deliver traffic among ISPs, content
providers, online service companies, and other customers.

• Internet service providers (ISPs): These are companies that receive and translate internet-
bound data and help customers obtain online information from the Internet.

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• Content providers: This part of broadband consists of companies that provide

information, goods, and services available to consumers through the Internet.

These characteristics and distinctions are based on network functionality and the fact that each of
these categories has its own economic properties with distinct regulatory issues. Currently there
is very little competition in the provision of middle-mile services, which means existing
providers can discriminate against their customers. Content providers, on the other hand, raise
competitive issues in terms of their ability or willingness to engage in exclusive contracts for the
carrying of their content, as well as posing challenges in the area of consumer protection and free
speech.

The last mile and the middle mile are most relevant for utilities because they relate to the wires
portion of the electricity network, the industry’s easiest entry into the broadband industry.

A partnership between a utility and an external third party service provider offers strategic value
as each player can focus on what it does best. Utilities have operated as monopolies and, while
good at building infrastructure they lack experience in competitive environment. On the other
hand, ISPs operate in a very competitive environment. The key success factors include
effectively marketing to customers, cost effective customer acquisition and a high quality
customer service.

Current broadband environment is competitive with both cable modem providers and DSL
providers aggressively marketing their services and other alternate providers looking at entering
the market. Customer service appears to be a key differentiator with most of the consumers. A
utility partnership with an ISP or CLEC might leverage key strengths: The utility could focus on
network management while the ISP could focus on marketing. The opportunity to work together
could also involve shared investment.

BPL may offer a number of significant benefits in the delivery of broadband services to homes
and businesses. This technology could increase the availability of broadband and improve the
competitiveness of the broadband services market. Access BPL could facilitate the ubiquitous
availability of broadband services and bring valuable new services to consumers, stimulate
economic activity, improve national productivity, and advance economic opportunity. The very
nature of BPL is expected to create the opportunity for providing new and innovative services to
virtually any location with electric outlets. The National Telecommunications and Information
Administration (NTIA) states that “BPL holds great promise as a new source of innovation and
competition in the broadband marketplace”. It believes that BPL has the potential to open new
avenues of Internet access, to enable new and expanded services for utility companies, and to
create a new platform for further advances in communications technology

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Consumer Benefits

The supporters of BPL expect it to improve the competitiveness of the market for broadband
services. It offers the long sought third wire (other two being telephone and cable) for last-mile
delivery of broadband communication services to residences and small businesses. In the areas
already served by other broadband providers, BPL will increase competition, which in turn will
bring better service and lower prices for consumers.

BPL is likely to be slightly more expensive for the consumer than traditional services such as
coaxial cable, DSL, or even wireless. However, it promises to be significantly less expensive
than either satellite or FTTH systems. See the graph in Figure 12 for the expected relative cost
comparisons among the different technologies.

Technology Comparison
Relative Cost per Subscriber
(mulitiples of CATV rates)
2.03
2.00

1.56
1.50

1.12
1.00
1.00 0.89 0.92

0.50

-
Wireless DSL Cable BPL Satellite FTTH

Figure 12

An interesting aspect of BPL is that every electric device is connected to the electric distribution
network. Potentially, BPL could let the electronics in every electric device talk to each other. Of
course, a Wi-Fi, Bluetooth or other wireless device could be placed in every appliance. But BPL

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may be a better solution. Those who had PC’s before the Internet exploded remember the
difference in functionality between a standalone PC and a networked PC. Networking every
electric device together over the power lines might result in a similar growth in productivity and
convenience for the home and office.

BPL Business Models

Several potential models have been proposed for BPL. Some utilities may make their lines
available to a third party that would then install BPL equipment. Others may decide to offer
broadband directly. Listed below are three fundamental business models available to electric
utilities including: a Landlord Model, Developer Model, and the Service Provider Model.

The Landlord Model

The Landlord Model emphasizes partnering with an existing communications company which
would give an electric company immediate access to operations and marketing expertise and
personnel without having to invest in either the expenses or the personnel. The value brought to
the table by the electric company, of course, would be its power line network.

Cautious utilities that want to avoid capital or operating exposure will look to enter into such
partnership arrangements as part of a landlord strategy. The landlord business model is a very
stable structure and can be risk-free if positioned correctly. This model allows for small returns
for small investment and effort. The benefits of the Landlord Model for an electric utility
include,

• No need to invest funds in building out the broadband network,

• The utility doesn’t have to operate the BPL system, and
• Regulations can be managed to allow for value creation to be maintained by the utility
without requiring that all proceeds are returned to the ratepayer base.

The Developer Model

The Developer Model involves building the infrastructure and offering wholesale access.
Utilities seeking to leverage their core competencies in building and maintaining networks will
look to this model.

Those electric companies that are reluctant to incur the marketing costs associated with selling
retail broadband services may want to consider marketing to a smaller group of customers—
traditional broadband companies. Traditional broadband companies are those that primarily or
exclusively sell communications services, such as broadband. There are many companies that
already have personnel experienced in the marketing and selling of broadband services but that

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have failed to thrive due to the high costs of building networks. In fact, many of these companies
must rely on ILECs to provide broadband
service to their customers. An incumbent local exchange carrier (ILEC), is a
local telephone company was in existence at the
time of the breakup of AT&T into the Regional Bell
BPL presents electric companies with the Operating Companies (RBOCs).
opportunity to sell broadband services to
these companies. By upgrading their electricity networks to include broadband capabilities,
electric companies could make ready-made last-mile broadband networks for competitive
broadband companies that seek to eliminate their dependency on ILECs, which are their direct
competitors for customers. The benefits of the Developer Model for an electric utility include,

• Regulations do not prevent opportunities to leverage the utility’s position in the market,
• Internal skills are present to construct a BPL network that is economically able to
compete with other players,
• Viable candidates to serve as the BPL service provider are available in the market,
• Interest or capability does not exist in running the network and the operations, and
• Attractive segments of the market exist, enabling select build opportunities.

The Service Provider Model

The Service Provider Model is one in which the utility interfaces with the customer. Aggressive
utilities seeking to offer retail broadband services may consider the service provider model. The
service provider business model involves the highest risk, but can feature tremendous upside.

Electric utilities are certainly poised to provide this service because they already own the poles
and lines that access virtually every residential and business customer in the United States.
Providing broadband service to these customers would simply require adding equipment to their
wires. The feature of BPL that would make it more attractive than DSL or cable modem is that
BPL customers would immediately have in-house networks without having to purchase and
install additional wiring in their homes.

The challenge with providing retail service, however, is that there are marketing costs that some
companies may be unwilling or unable to absorb. The cost of advertising to create market share
where none exists can be overwhelming. An electric company deciding to enter this retail market
would also have to hire or retrain staff with expertise in marketing broadband services. Any
utility interested in pursuing the service provider model will need to address market, operational,
and network build issues. The benefits of the Service Provider Model include,

• Regulations allow for joint marketing, thus enabling a superior projected market
penetration performance,
• Internal skills are present to construct a BPL network and maintain it during operations,

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• Skills needed to support marketing, operations, and network management are in house,
and
• The market is an attractive one that offers solid promise for financial returns.

Competitors

The main competitors to BPL – or maybe we should say those that BPL will be a competitor
with – include Cable TV companies, ILEC DSL services, and wireless services provided by
either a CLEC or ILEC.

Cable as a competitor
Cable is a shared medium and all subscribers from the Head-End share the available bandwidth.
Many cable networks have been upgraded to Hybrid Fiber Co-axial (HFC) networks and
therefore many products and services can be bundled through cable such as video, data and
voice.

As the dominant providers of broadband access, cable companies are seeking ways to solidify
their position. One trend is the continued emergence of tiered service levels as a way of enticing
lower potential customers while retaining margins on higher value customers. Among the
offerings by cable companies are VoIP and digital cable.

Cable has extended the broadband services offering to over 90 percent of homes passed by cable
systems. The cable industry expects that industry-wide facilities upgrades enabling the provision
of broadband Internet access to residential customers will be completed soon.

In addition to expanding the reach of upgraded broadband facilities, cable operators have
increased download transmission speeds from 200 kbps to over 30 Mbps. Cable companies have
also continued to upgrade equipment used to deliver broadband services. Data over Cable
Service Interface Specification or DOCSIS, has continued to develop the critical interface
requirements for cable modems and cable modem termination systems used for high-speed data
distribution and connection to the Internet.

The cable industry is also pursuing Next Generation Network Architecture (NGNA), which is in
part a competitive response to wireline broadband providers and in part a response to Direct
Broadcast satellite’s (DBS) Digital Video Recorder (DVR) technology. The NGNA project seeks
to define the features of a next-generation all-digital cable network, which could have broad
implications for functionality and cost. The effort involves rethinking cable’s basic technologies,
including everything from encryption strategies to set-top boxes that can be dramatically
upgraded via software uploads, to create more carriage capacity by completely migrating cable
service from analog-to-digital transmission so that all services could be provided utilizing IP.

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A number of cost factors effectively form the pricing floor for cable companies. These factors
include:

• Programming and labor costs have been rising steadily, and in excess of inflation rates,
• Cable companies have collectively invested over $75 billion, or over $1,000 per customer
in network upgrades, and
• Cable companies view satellite providers and not DSL providers as key competitors for
pricing.

DSL as a Competitor
DSL technology can be provisioned on most of the existing phone networks and comes in many
different versions. ADSL is the most common DSL-type currently deployed by service
providers.

DSL deployments have lagged behind that of cable modem. Once projected to exceed the
penetration of cable modem, DSL’s market penetration today is barely one-half of its broadband
counterpart. Key Issues are:

• DSL is primarily a low-margin product; providers view DSL as a mechanism to sell

Value Added Service (“VAS”),
• ILECs effectively controlled the provisioning process and prevented data local exchange
carriers (DLECs) from being able to effectively serve customers,
• ILECs have been relatively slow to aggressively deploy DSL for fear of cannibalizing
their T1 business, and
• DSL is slow with 1.5 Mbps to 3.0 Mbps in most areas.

Wireless as a competitor
Hot spot coverage is growing dramatically and this trend is expected to continue. This continued
growth affords the industry opportunities to benefit from economies of scale, as already low
equipment costs will continue to push downward. While Wi-Fi application is moving forward,
there are several concerns that are also being addressed:

• Convenience and simplicity vs. Network security - Radio signals typically extend beyond
the physical boundaries that are part of planned signal propagation. In many instances
network security breaches have occurred when users failed to implement Wired
Equivalent Privacy (WEP).
• Limited market reach due to short range - A concern for developers is that customer
reach may be limited to extend the business beyond a pure hot spot. However, new

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technologies are expected to increase reach and offer a greater chance to develop a
broadcast access market play.
• A format to establish IP roaming has not yet been established – This is essential for a
viable long-term growth strategy. A pure hot spot market approach does not necessarily
depend on roaming agreements to be in place; however a growth strategy necessitates
roaming agreements.
• Interference issues - High degrees of deployment can cause interference in the Industrial,
Scientific, and Medical (“ISM”) spectrum band.

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Chapter 4
Regulatory Issues

BPL technology provides the opportunity to have true competition for broadband service. Given
the applications and services it can offer it is incumbent upon regulators to adopt a uniform set of
rules and regulations that will facilitate the provision of BPL service in the United States while
ensuring that public interest concerns are protected. In order to provide broadband access to all
citizens, the FCC and the states are defining and adopting a regulatory scheme that removes
unnecessary barriers to market entry and permits electric companies to be competitive in the
marketplace.

Even though the Telecommunications Act of 1996 mandated that broadband service be widely
available in the United States, the actual market for that service today is a duopoly—with
customers in most jurisdictions connecting to the internet through either their incumbent local
exchange carrier (ILEC), which provides broadband service through digital subscriber lines
(DSL), or their local cable operator, which provides the service through a cable modem. Duopoly
does not necessarily provide consumers the opportunity to get the best combination of rates and
services, and many now are looking to electric companies as a third competitive provider of
broadband.

The Federal Communications Commission (FCC) promulgated rules in 2004 that provides
regulatory guidelines for the provisioning of BPL. In this ruling, the FCC has clearly established
the rules and, some say, illustrates an endorsement of BPL by the FCC. The FCC and others
have hailed BPL as a potential “third wire” that may help increase the availability and
affordability of broadband services in a market dominated by digital subscriber line (DSL) and
cable modem service. As part of the federal effort to remove barriers to BPL implementation, the
FCC issued a change to Part 15 rules for measures to mitigate radio interference caused by
broadband over powerline. The FCC ruling in 2004 would essentially help overcome BPL’s
potential to cause interference with radio and telecommunications signals.

However, a number of jurisdictional and classification issues remain open. For example, are the
broadband services offered via BPL considered an information service or a telecommunications
service? This has implications since telecommunications services are subject to regulations under
the Telecommunications Act of 1996, most notably common carrier requirements.

Reliability and safety of the power delivery system and provision of quality service are the main
concerns for state commissions. In addition, affiliate transaction policies and cross subsidization
issues are major concerns. State Commissions are obligated to prevent the unfair use of an asset
developed with ratepayer funds for the benefit of shareholders. They are also obligated to ensure
that electric utilities do not have an unfair advantage over competitors. Thus several solutions

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such as creation of unregulated BPL subsidiaries or implementation of accounting rules that

guard against cross subsidization may be considered.

The state regulators will also need to address rights of way, and access to poles issues. For
instance, some municipalities may seek to charge fees for BPL rights of way. Pole attachment
rules may also need to be addressed because of potential interference problems.

In this ruling, FCC recognized the legitimate concerns of licensed radio services, and therefore,
established new technical requirements for BPL devices that require, among other things, that
BPL avoids specific frequency bands and frequency exclusion zones.

The FCC explained that the rules would require the equipment to mitigate interference by either
notching (reducing power) or shifting frequencies of operation, or by shutting down remotely.
Many of the BPL technologies already have that capability. At the same time, the FCC will also
exclude BPL from operating on certain frequencies on a local or nationwide basis in order to
protect certain licensed operations that are life and safety related. The FCC also will only require
limited disclosure of BPL operations for a publicly accessible database to provide notice and
BPL operator contact information to licensees that experience interference. Finally, there will be
new measurement guidelines that are “consistent and repeatable” and that BPL equipment
authorization will be subject to a certification process rather than simple verification by the
manufacturer. According to the FCC, these rules remove uncertainty and ensure licensed services
are protected.

The FCC believes that the revised Part 15 rules will help promote and foster the development of
the BPL technology with its associated benefits while at the same time ensure that existing
licensed operations are protected from harmful interference.

Frequency Spectrum

Let’s take a quick look at where BPL operates in the frequency spectrum and where conflicts are
likely to occur. A number of BPL vendors have suggested use of frequencies up to 50 MHz At
least one vendor is considering use of 4 MHz to 130 MHz, while excluding frequencies that are
actively in use by certain licensed services. One solution put forward in an attempt to mitigate
interference with licensed services is to attenuate or “notch” BPL signals in frequency bands
where licensed services are in nearby use. Future BPL systems may be able to accomplish this
automatically without system operator intervention. To implement this solution while
simultaneously maximizing the useable bandwidth, BPL systems are expected to use new
modulations that can support more sub-carriers that are more finely spaced.

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Another BPL technology utilizes the 2.4 GHz and 5.8 GHz unlicensed bands. An implementation
using multiple IEEE 802.11b/g WiFi chips sets has been used to demonstrate the concept of
carrying data over medium-voltage power lines at rates exceeding 200 Mbps.

Currently, the frequency band breaks down as follows,

• AM radio: 535 kHz to 1.7 MHz

• Short-wave radio: 5.9 to 26.1 MHz. This is the only part of the radio spectrum that
supports long-distance, intercontinental radio communication. The short waves are used
for international broadcasting, aeronautical, maritime, disaster relief, and other services
including the military
• Citizens-band (CB) radio: 26.96 to 27.41 MHz
• Television stations: 54 to 88 MHz for channels 2 through 6
• VHF: The “low-band VHF” frequency range is heavily used by volunteer fire
departments, police, and other first responders
• FM radio: 88 to 108 MHz
• Television stations: 174 to 220 MHz for channels 7 through 13

See Figure 13 for a graphic of this portion of the frequency spectrum.

VLF LF MF HF VHF UHF SHR EHF IR Visible

100 KHz 1 MHz 10 MHz 100 MHz 3 GHz 10 GHz 100 GHz

Figure 13
Interference and Radio Static

Powerline system is a type of carrier current system that electric utility companies have
traditionally used for protective relaying and telemetry. They operate between 10 kHz and 490
kHz, although today many utilities rely on the 1-30 MHz bandwidth for BPL transmission. A
carrier current system transmits radio frequency energy to a receiver by conduction over the
electric power line.

BPL operates under Part 15 of the FCC’s rules for A carrier-current device is any
unlicensed devices, as an unintentional, carrier- device that intentionally conducts
current emitter. Although carrier-current devices signals onto the ac-mains or
meet radiated emissions limits, not conducted limits distribution electrical wiring.
like other broadband technologies, the power levels
typically used by BPL systems are approximately 30 to 40 dB greater than the FCC limits for
other unintentional emitters. It is not surprising that BPL poses a much higher interference threat
than almost all other types of unlicensed emitters of RF noise.

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