Broadband Over Power Line Hype Doesn't Match Reality, According to Energy Insights Study.

FRAMINGHAM, Mass. -- Despite the hype surrounding broadband over power line (BPL) technology, analysts with Energy Insights are taking a conservative stance in their forecast of BPL subscribers in the United States. "We believe that a lack of utility expertise in running commercially successful consumer telecom businesses and a poor track record of success, combined with utility reluctance to rapidly adopt new technologies, and competition from DSL, cable modems, and other emerging technologies will limit the growth of BPL," said Rick Nicholson, vice president of research for Energy Insights. "Even in markets currently underserved by DSL and cable modems, the lack of customer density makes achieving scale and favorable economics a challenge."

Nicholson authored the Energy Insights study entitled Broadband over Power Line: Impact for Utility Companies (Doc #EI10050). The study presents an assessment of broadband over power line technology and its potential impact on utility companies. It looks at the basics of BPL technology and presents a comparison with competing technologies, analyzes the relevant regulatory environment, and explores alternative business models and current technology deployments. The study also provides a forecast of BPL subscriptions and profiles of major technology vendors, and includes specific recommendations for utilities.

Nicholson asserts that the largest challenge facing utilities that are considering deploying BPL or that are actively doing so is turning BPL into a commercially successful business. Utilities must find a way to obtain sufficient revenue and other benefits from BPL to offset the deployment and operating costs. "Successful BPL deployments by utilities will hinge on carefully choosing the right business model and markets, finding the right partners for these markets, and leveraging BPL capabilities for utility-related purposes," Nicholson said.

About Energy Insights, an IDC Company

Energy Insights, an IDC Company, provides energy industry executives with research-based advisory and consulting services that enable energy companies to maximize the business value of their technology investments, minimize technology risk through accurate planning, benchmark themselves against industry peers, adopt industry best practices for business/technology alignment, make more informed technology decisions and drive technology-enabled business innovation.

Energy Insights provides full coverage of the energy industry value chain from upstream to retail activities. Staffed by senior analysts with significant technology experience in the energy industry, Energy Insights provides a portfolio of offerings that are relevant to both IT and business needs.

Founded in January 2005, Energy Insights is headquartered in Framingham, Mass. Visit http://www.energy-insights.com for more information.

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