Broadband over Power Lines or BPL

DirectTV may offer Broadband over the Power Grid

By Phil Tomlin

Dallas Texas (hyperwires) - The Satellite television provider DirectTV is thinking about adding broadband internet over power lines in some major US cities. They don't know yet as it is still in the early stages but they plan to test this technology out in a major US city and see just how possible it may be.

The problem for seen with this potential offering is the cost involved. In order to have the infrastructure in place on the lines and in the homes to provide this service you are looking at approximately $500 a home. The question is why someone would choose this service from what is already available. There is not a good justification for DirectTV to add this infrastructure to the power lines if customers have no incentive to buy it. It will certainly be interesting to see what happens. If however customers out in the boonies as is the case with many DirectTV customers want broadband internet but cannot get it then they are the ones most likely to shell out a $500 setup fee.

DirectTV is currently talking with several companies who have been working on BPL technology for several years. I am curious to know if they are talking to Luke Stewart who is in a class action lawsuit with several investors who gave him money to invest in this technology and then he used most of the money for his own personal luxury and gain. There has yet to be any proof that Luke Stewart's claims are even real. He claims a lot but has yet to show any proof. Hopefully no one else falls for his BPL investment scheme. Broadband through the Electric Grid is a legitimate technology but the companies that are wanting to make this happen need to be talking to legitimate businesses that have the proven capabilities to make it work.

DirectTV is among a handful of companies working on this new technology. There are several other companies that are doing tests and are trying to get a product and service together to offer broadband internet customers.

DirecTV plans to cover 50 major cities and at least half of the city would have access to this service if they so desired. I imagine there would be a hefty setup fee but I could be wrong. We will of course have to wait to find out.

Wall Street Analysts have watched closely has satellite TV company DirectTV has managed to keep adding new subscribers even though cable TV offers some competitive competition. The analysts have been actively interested in what way the satellite companies would begin competition with cable by offering a competitive broadband service offering..

DirectTV is interested in working with several other Retailer service companies in pushing a large investment in the roll out of broadband internet over power lines in order to get this market on the fast track. It would benefit the satellite TV company greatly to be able to offer a comparable broadband service to cable. It will probably take these extra companies to assist DirectTV in order for the investment to be worth their while. There is just too much money needed to get it off the ground..

If this technology continues to be a serious business growth strategy for DirectTV then you will most likely see the company ownership shifting to Liberty Media Group as they have a large investment in broadband over power lines and will be able to see this strategy through to its completion.

If broadband over power lines does not work out they are currently in the talks with several partners and other companies in making broadband accessible by other means. This could possibly be the beginning of the first wide scale use of broadband of power lines that we have seen. We will have to wait and find out!