IBM powers up broadband grid

HALLOWEEN MAY BE over, but IBM seems set on resurrecting ideas from the dead, this time putting its money on broadband Internet access via ordinary power lines.

The computing giant is teaming up with small-time International Broadband Electric Communications (IBEC) in an attempt to bring broadband to rural communities which otherwise wouldn’t have access to the necessary infrastructure.

It’s something many have tried and failed to achieve in the past due to technical problems, angry opposition from radio operators who claim the technology interferes with their signals and budget constraints.

The way the technology works is by sending data along the same wires that provide electricity. Every couple of kilometres, a device fixed to the power line passes the signal forward. All customers have to do is plug a modem into their wall socket and log on.

Stats from the Federal Communications Commission for 2006, the most recent year available, reckoned less than 5,000 people in the US got broadband access through power lines or wall outlets.

But with improved technology, $70 million in low-interest loans from the Department of Agriculture and IBM now on-board, IBEC reckons it has a shot with punters left behind in the scramble for high-speed Internet.

IBM's head of advanced networking, Ray Blair, knows that competing head-on with big cable or DSL providers will not be the way forward, noting, "Broadband service by any of the major utilities doesn't make sense."

In rural areas, however, where the big boys of broadband can’t be bothered to provide the infrastructure, Blair reckons IBEC’s power line model is really economical enough to take off.

Radio interference may also no longer be much of an issue, according to Blair, who says a key innovation in the last few years allows for remotely controlling the devices on the power lines and being able to switch its frequency when it meets interference.

The deal with IBM is apparently worth $9.6 million to IBEC, which covers equipment and installation costs. IBEC’s Chief exec, Scott Lee reckons the whole infrastructure should take about two years to lay down and cost $70 million. Infrastructure in place, IBEC should have access to 340,000 homes in Alabama, Indiana, Maryland, Pennsylvania, Texas, Virginia, and Wisconsin, about 86 percent of which have no cable or DSL access, according to Lee.

This would be a massive leap for IBEC which currently only has a broadband customer base of 1,400. IBEC says its basic service will cost about $30 a month, with more expensive plans for higher speeds. µ

L'Inq
AP