With the telecoms shakeout threatening the traditional ways of
building networks, some companies are looking for alternatives to
the tried-and-tested - but also financially risky - telecoms
model.
Startup networking vendor Amperion is a case in point. Rather than
leasing lines from telecoms or laying down new fibre, Amperion's
planned solution will ride over the largest network infrastructure
in the world: the US utility power grid.
The company is developing hardware and software that will let
utility companies send high-speed data over medium-voltage power
lines. These connect low-voltage lines, which deliver power
directly to buildings and to the rest of the network over distances
ranging to as much as 30 miles.
The equipment will launch and repeat signals on the wire, according
to Philip Hunt, Amperion's president. Other parts of the
technological puzzle will be provided through a partnership with
Cisco Systems.
This means that customers in search of broadband connectivity have
a new alternative to the incumbent broadband providers - an
attractive bonus in hard-to-serve suburban and rural areas, since
most of the country is connected to the power grid - and utility
companies can generate new revenue from their existing networks.
Amperion's bandwidth could also be sold to digital subscriber line
(DSL) and cable providers, said David Diamond, an Amperion board
member.
"Medium voltage is available, and you're already connected to it
for your power. Why not use it for [Internet traffic]?" Hunt
said.
The company's solution is being designed for long-haul traffic. But
according to Hunt, the system is "last-mile agnostic". DSL
providers could serve areas that are too far from the central
office to receive service by placing DSLAMs (DSL access
multiplexers) into neighbourhoods and backhauling the traffic onto
power lines.
Amperion will target its solution at the power utilities'
unregulated telecoms subsidiaries as well as traditional players
such as incumbent local exchange carriers; competitive local
exchange carriers; and wireless providers.
Expected bandwidth speeds have not been announced, but Hunt said
they would be in the "multiple megabit range". He added that the
service would be delivered in ranges that customers are familiar
with. "You'll see a T1 lookalike service and a DS3 lookalike
service," Hunt said.
Product demonstrations are expected within five to eight months,
according to Hunt.
Whether or not power lines are the answer remains to be seen, but
most industry watchers agree that something has to be done to shake
up the struggling telecoms business.