Wednesday, November 12, 2008
First cable operators had to worry about satellite providers, next came telcos, and now power companies. "Under the $9.6 million agreement, IBM will install IBEC’s broadband-over-power-line networks at electric cooperatives in seven states within the next two years." And while IBM is working with rural electric companies to provide broadband deployment, there is nothing to prevent them from taking this technology and deploying across the entire country. For these rural markets, it has not been cost effective to wire these homes for cable. At less than 10 homes a mile, the cost is extravagant. Existing power lines make deployment easier and helps connect the entire country, "closing the digital divide that exists between well-served and underserved America." As the technology improves, broadband over power lines will be able to provide a competitive product that could provide not only data, but phone and video as well, to all consumers.
Posted by Andy Hunn