More Trouble for Telcos

If telecom carriers didn't have enough problems, the Federal Communications Commission adopted rules earlier this week that will let eletrical utilities provide high-speed Internet access services. This is very troubling news for carriers – and cable companies, for that matter – because high-speed access has been one of the few high-growth/revenue generating markets. If electrical utilities decide to get into the broadband powerline (BPL) game, it will no doubt mean reduced consumer prices and fewer customers for carriers and cable companies.
BPL works by connecting computers to the Internet through electrical sockets. Using a specialized modem, computer users can get speeds of one to three three megabits/second. So far, the biggest roll-out of BPL has been done by Current Communications Group and Cinergy Corp., which launched a service in March. To date, the service has attracted more than 16,000 customers. The New York Times reports that widespread BPL service will likely be avaiable for more than a year.