Although the industry has long known about the possibility of using power lines to send Internet signals, the project represents the first large-scale rollout of broadband over power line (BPL) technology and services in the US. Cinergy and Current Communications believe that they will be able to offer lower prices and more convenience.
As part of its nationwide strategy, Current offers consumers and small businesses affordable and user-friendly high-speed Internet and voice over IP (VoIP) telephone services by using electric power lines as a more cost-effective alternative to cable and telephone lines.
Current, which is an industry leader in developing the latest technology to adapt electricity lines to deliver broadband access, has formed two joint ventures with Cinergy, a diversified energy company. The first venture will provide a bundle of broadband and voice services to Cinergy’s 1.5 million customers in Ohio, Indiana and Kentucky. The second venture will deploy BPL to smaller municipal and cooperatively owned power companies covering 24 million customers across the US.
In addition to the joint ventures, Cinergy has made an investment in Current as part of a larger round of financing led by Current’s existing investors, Liberty Associated Partners and EnerTech Capital. The aggregate amount of financial commitment to Current and the BPL joint ventures by all parties in these transactions exceeds $70 million.
The rollout of the integrated solution is already underway in the greater Cincinnati area. Initial deployment follows 14 months of trials, during which the network’s robust performance and reliability produced high customer satisfaction and a strong interest in enrolling in the commercial service.
The announcement by Current and Cinergy follows last week’s release by the Federal Communications Commission of proposed rules to facilitate the deployment of BPL over the electric power grid. The FCC’s leadership in focusing on the untapped capabilities of the nation’s power grid will help provide high-speed Internet access to all areas, including those in which there is a limited choice of broadband providers or no broadband coverage at all.
We fully anticipate that customers will be attracted to the total simplicity of our service. We don’t just bring broadband to the home; we bring broadband to where the customer wants it – in every room in the home. You just plug the computer into any outlet, and you have an instant, always-on connection to the Internet, said Ronald Boillat, president of Current Communications Services, Current’s broadband services subsidiary.
