BPL May Boost Utilities' Bottom Line, says ABI Research.

OYSTER BAY, N.Y. -- Broadband networking over power lines - whether in the home or in the wider area - remains a niche market, but it may prove a boon to power utilities. A fringe benefit of using a region's power grid to carry broadband access networks is that it makes the electricity distribution and monitoring system visible to managers as never before.

BPL (Broadband over Powerline) has the general blessing of governments and a reservoir of underdeveloped markets in eastern Europe, China, India and other regions lacking in strong communications infrastructure. But, according to Vamsi Sistla, ABI Research's director of broadband, digital home and media, such disruptive technologies, while they address emerging markets, can also benefit legacy businesses such as power utilities in the industrialized world.

"Innovation in powerline technologies may or may not add to power utilities' revenues immediately," he says, "but the cost savings they enable will certainly help their bottom lines."

Take the ability to remotely monitor electric meters. Traditionally, a human "meter reader" would visit every customer's household to log power use manually. Even with the later development of "drive-by" meter reading, a driver, a truck and some specialized equipment were required. All of those cost money and time, and ultimately drive up prices.

Grafting a broadband network onto the power grid, on the other hand, means completely remote, automated meter reading, as well as instant reporting of outages and system failures. "ABI Research believes the utility industry should focus on these low hanging fruits, even more than building BPL capabilities to generate additional revenue," notes Sistla.

ABI Research's recent study, "The Future of HomePlug/In-house PLC and Access BPL" examines overall market viability and its challenges, while focusing on individual vendors and providers. Detailed market forecasts are included for HomePlug/PLC shipments, BPL subscribers, CPE analysis and more.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For information visit www.abiresearch.com, or call +1.516.624.2500.