1. Broadband Over Power Line July 28, 2003 Steven E. Collier Vice President, Emerging Technologies National Rural Telecommunications Cooperative

2. May 23, 2003PLC HSI Overview2

3. May 23, 2003PLC HSI Overview3 Some History Pre 2000 - Generally bad experience with broadband via power line carrier (PLC)

4. May 23, 2003PLC HSI Overview4 Some History Pre 2000 - Generally bad experience with broadband via power line carrier (PLC) –Physics

5. May 23, 2003PLC HSI Overview5 Some History Pre 2000 - Generally bad experience with broadband via power line carrier (PLC) –Physics –Vendors

6. May 23, 2003PLC HSI Overview6 Some History 1997 - NRECA Cooperative Research Network project report

7. May 23, 2003PLC HSI Overview7 Some History 1997 - NRECA Cooperative Research Network project report –dim prospects for broadband communications via power line carrier (PLC).

8. May 23, 2003PLC HSI Overview8 Some History 2001 - NRECA & NRTC update project report

9. May 23, 2003PLC HSI Overview9 Some History 2001 - NRECA & NRTC update project report –Prospects still dim for PLC broadband for rural utilities.

10. May 23, 2003PLC HSI Overview10 Recent Events 2001 - 2003 –PLC broadband vendor and developer activity increased considerably.

11. May 23, 2003PLC HSI Overview11 Recent Events 2001 - 2003 –Cooperatives contacted by developers to solicit field trials, pilot projects, capital investment.

12. May 23, 2003PLC HSI Overview12 Recent Events 2002 - 2003 –Several vendors claiming to be commercial now or later this year.

13. May 23, 2003PLC HSI Overview13 Recent Events Trade Associations –1998 - United Telecommunications Council’s (UTC) Power Line Telecomm Forum (PLTF), founded.

14. May 23, 2003PLC HSI Overview14 Recent Events Trade Associations –1998 - United Telecommunications Council’s (UTC) Power Line Telecomm Forum (PLTF), founded –December 5, 2001 - Power Line Communications Association (PLCA) formed by electric utilities interested in offering PLC broadband.

15. May 23, 2003PLC HSI Overview15 Recent Events Trade Associations –1998 - United Telecommunications Council’s (UTC) Power Line Telecomm Forum (PLTF), founded –December 5, 2001 - Power Line Communications Association (PLCA) formed by electric utilities interested in offering PLC broadband. –Early 2002 - PLTF became independent United Power Line Council (UPLC).

16. May 23, 2003PLC HSI Overview16 Recent Events Numerous utilities worldwide trying BPL –trials involving a few hundred to a few thousand customers.

17. May 23, 2003PLC HSI Overview17 Recent Events A few “field tests” and “pilot projects” are underway in the U.S. –each involving a small number (  100) of retail customers.

18. May 23, 2003PLC HSI Overview18 Recent Events Federal Communications Commission –FCC Chairman Michael Powell and his colleagues publicly express enthusiasm for PLC broadband.

19. May 23, 2003PLC HSI Overview19 Recent Events Federal Communications Commission –FCC Chairman Michael Powell and his colleagues publicly express enthusiasm for PLC broadband. –UPLC and PLCA jointly asked the FCC to adjust its rules, particularly the power limitations of Part 15, to encourage PLC broadband.

20. May 23, 2003PLC HSI Overview20 Recent Events Federal Communications Commission –FCC Chairman Michael Powell and his colleagues publicly express enthusiasm for PLC broadband. –The UPLC and PLCA jointly asked the FCC to adjust its rules, particularly the power limitations of Part 15, to encourage PLC broadband. –Notice of Inquiry (NOI) initiated on April 23, 2003

21. May 23, 2003PLC HSI Overview21 FCC NOI Seeks information, comment, and technical data –Current state of high speed broadband over power line (BPL) technology

22. May 23, 2003PLC HSI Overview22 FCC NOI Seeks information, comment, and technical data –Current state of high speed broadband over power line (BPL) technology –Test results from BPL experimental sites

23. May 23, 2003PLC HSI Overview23 FCC NOI Seeks information, comment, and technical data –Current state of high speed broadband over power line (BPL) technology –Test results from BPL experimental sites –Interference effects on authorized spectrum users

24. May 23, 2003PLC HSI Overview24 FCC NOI Seeks information, comment, and technical data –Current state of high speed broadband over power line (BPL) technology –Test results from BPL experimental sites –Interference effects on authorized spectrum users –Measurement procedure for testing emission characteristics

25. May 23, 2003PLC HSI Overview25 FCC NOI Seeks information, comment, and technical data –Current state of high speed broadband over power line (BPL) technology –Test results from BPL experimental sites –Interference effects on authorized spectrum users –Measurement procedure for testing emission characteristics –Changes that may be needed in Part 15 technical rules and the equipment approval process

26. May 23, 2003PLC HSI Overview26 FCC NOI Initial Comments filed July 7, 2003 Reply Comments due August 6, 2003 Notice of Proposed Rulemaking (NPR)?

27. May 23, 2003PLC HSI Overview27 What Is BPL? A high frequency signal carries broadband IP on a utility power line.

28. May 23, 2003PLC HSI Overview28 The Distribution System Insert Power Line Carrier at middle voltage Backhaul to NAP (fiber, DSL, wireless, satellite) Getting beyond the transformer

29. May 23, 2003PLC HSI Overview29 What Is BPL? The high frequency signal is coupled directly onto the power line, not via modulation of the power waveform.

30. May 23, 2003PLC HSI Overview30 What Is BPL? The effective power is < 1 Watt.

31. May 23, 2003PLC HSI Overview31 What Is BPL? The high frequency signal –1.7 Mhz to 100 Mhz

32. May 23, 2003PLC HSI Overview32 What Is BPL? The high frequency signal –1.7 Mhz to 100 Mhz –Digital spread spectrum

33. May 23, 2003PLC HSI Overview33 What Is BPL? The high frequency signal –1.7 Mhz to 100 Mhz –Digital spread spectrum –Unlicensed

34. May 23, 2003PLC HSI Overview34 What Is BPL? The high frequency signal –1.7 Mhz to 100 Mhz –Digital spread spectrum –Unlicensed FCC Part 15 dictates a very low power transmitter to avoid unintentional radiation.

35. May 23, 2003PLC HSI Overview35 What Is BPL? A high frequency transmitter/receiver (power line modem) is coupled to the power line

36. May 23, 2003PLC HSI Overview36 What Is BPL? “Middle” Voltage –34.5 KV or less

37. May 23, 2003PLC HSI Overview37 What Is BPL? Point of signal coupling –In substation –Along the distribution line –In distribution transformer cabinet

38. May 23, 2003PLC HSI Overview38 What Is BPL? Method of signal coupling –Capacitive –Inductive

39. May 23, 2003PLC HSI Overview39 What is BPL? At the subscriber’s premises: –Bypass the distribution transformer with fiber, wireless or coax and inject PLC on the low voltage service drop wires, or

40. May 23, 2003PLC HSI Overview40 What is BPL? At the subscriber’s premises: –Bypass the distribution transformer with fiber, wireless or coax and inject PLC on the low voltage service drop wires, or –Bypass the distribution transformer with fixed wireless to the premises, or

41. May 23, 2003PLC HSI Overview41 What is BPL? At the subscriber’s premises: –Bypass the distribution transformer with fiber, wireless or coax and inject PLC on the low voltage service drop wires, or –Bypass the distribution transformer with fixed wireless to the premises, or –Transmit PLC through the distribution transformer to the premises.

42. May 23, 2003PLC HSI Overview42 What Is BPL? “Low” Voltage –120 V Connect through power line modem

43. May 23, 2003PLC HSI Overview43 Inside the Home or Business Power Line Modem

44. May 23, 2003PLC HSI Overview44 Inside the Home or Business Fixed Wireless

45. May 23, 2003PLC HSI Overview45 BPL Potential Advantages Power lines reach every consumer

46. May 23, 2003PLC HSI Overview46 BPL Potential Advantages Power lines reach every consumer –the most remote rural consumer

47. May 23, 2003PLC HSI Overview47 BPL Potential Advantages Power lines reach every consumer –the most remote rural consumer –unmanned sites (water wells, oil wells, street lights, etc.)

48. May 23, 2003PLC HSI Overview48 BPL Potential Advantages Power lines reach every consumer –the most remote rural consumer –unmanned sites (water wells, oil wells, street lights, etc.) –multiple locations within a building

49. May 23, 2003PLC HSI Overview49 BPL Potential Advantages Broadband is available anywhere there is utility power –Broadband is available along the middle voltage line for utility applications. AMR, SCADA, security, etc.

50. May 23, 2003PLC HSI Overview50 BPL Potential Advantages Broadband is available anywhere there is utility power –On end-to-end BPL systems, broadband is available on consumers premises anywhere there is a power line. Internet appliances for premises monitoring and control.

51. May 23, 2003PLC HSI Overview51 BPL Potential Advantages Scalable. –Can be built one feeder at a time. –To a lesser extent can be built out on an individual feeder as customers sign up.

52. May 23, 2003PLC HSI Overview52 BPL Potential Advantages Bandwidth can be controlled. –Upload & download speeds can be provisioned symmetrical or asymmetrical for each individual subscriber

53. May 23, 2003PLC HSI Overview53 BPL Potential Advantages Vendors claim speeds comparable to or better than DSL or cable. –As much as 45 Mbps bulk transfer, >1 Mbps to individual subscribers –Double? this with next generation electronics

54. May 23, 2003PLC HSI Overview54 BPL Potential Advantages CPE is plug & play –Some vendors compatible w/ Home Plug Alliance (HPA) –Some vendors have proprietary CPE

55. May 23, 2003PLC HSI Overview55 BPL Potential Advantages For electric utilities: –Utility owns and controls the power line infrastructure.

56. May 23, 2003PLC HSI Overview56 BPL Potential Advantages For electric utilities: –Utility owns and controls the power line infrastructure. –BPL may be a good opportunity for diversified service.

57. May 23, 2003PLC HSI Overview57 BPL Potential Advantages For electric utilities: –Utility owns and controls the power line infrastructure. –BPL may be a good opportunity for diversified service. –BPL network may also support utility applications (AMR, SCADA, security, etc.)

58. May 23, 2003PLC HSI Overview58 BPL Advantages For telecomm utilities: –Opportunity to assist electric utilities with access to Internet backbone.

59. May 23, 2003PLC HSI Overview59 BPL Advantages For telecomm utilities: –Opportunity to assist electric utilities with access to Internet backbone. –Opportunity to assist electric utilities with telecom network management support.

60. May 23, 2003PLC HSI Overview60 BPL Advantages For telecomm utilities: –Opportunity to assist electric utilities with access to Internet backbone. –Opportunity to assist electric utilities with telecom network management support. –Opportunity to assist electric utilities with voice and video content.

61. May 23, 2003PLC HSI Overview61 BPL Challenges Technology Systems Institutional Economics

62. May 23, 2003PLC HSI Overview62 BPL Technology Challenges Not in full commercial production – Part I –There may be unforeseen design & manufacturing issues.

63. May 23, 2003PLC HSI Overview63 BPL Technology Challenges Not in full commercial production – Part I –There may be unforeseen design & manufacturing issues. –May not work as intended in full deployment in a wide variety of environments and utility system characteristics.

64. May 23, 2003PLC HSI Overview64 BPL Technology Challenges Not in full commercial production – Part I –There may be unforeseen design & manufacturing issues. –May not work as intended in full deployment in a wide variety of environments and utility system characteristics. –May not be adequately durable for notoriously adverse utility environments.

65. May 23, 2003PLC HSI Overview65 BPL Technology Challenges Utility power systems are adverse environments for broadband communications. –Network characteristics (topology, impedance, splices, terminations, grounding) and –devices (regulators, capacitors, re-closers) can adversely affect signal strength and quality.

66. May 23, 2003PLC HSI Overview66 BPL Technology Challenges Utility power systems are adverse environments for broadband communications. –Electronic loads and nearby high frequency radiation sources may cause high frequency noise that interferes with BPL.

67. May 23, 2003PLC HSI Overview67 BPL Technology Challenges Utility power systems are adverse environments for broadband communications equipment. –Equipment will be exposed to extreme weather.

68. May 23, 2003PLC HSI Overview68 BPL Technology Challenges Utility power systems are adverse environments for broadband communications equipment. –Equipment will be exposed to extreme weather. –Equipment will be exposed to severe lightning and switching surges.

69. May 23, 2003PLC HSI Overview69 BPL Technology Challenges Utility power systems are adverse environments for broadband communications equipment. –Equipment will be exposed to extreme weather. –Equipment will be exposed to severe lightning and switching surges. –Equipment will be exposed to rough handling.

70. May 23, 2003PLC HSI Overview70 BPL Technology Challenges Some PLC systems may not be fully operable at very low or no load without battery backup.

71. May 23, 2003PLC HSI Overview71 BPL Technology Challenges Physics limit ultimate bandwidth in densely penetrated areas.

72. May 23, 2003PLC HSI Overview72 BPL Technology Challenges BPL in wide deployment may cause unacceptable RFI.

73. May 23, 2003PLC HSI Overview73 BPL Technology Challenges None of the existing vendor’s systems are interoperable.

74. May 23, 2003PLC HSI Overview74 BPL Technology Challenges Other unforeseen issues may arise in wide deployment.

75. May 23, 2003PLC HSI Overview75 BPL Systems Challenges A substantial BPL infrastructure must be planned, installed and maintained. –May have to be customized for specific power system topologies and characteristics.

76. May 23, 2003PLC HSI Overview76 BPL Systems Challenges A significant telecomm network must be planned, installed and maintained.

77. May 23, 2003PLC HSI Overview77 BPL Systems Challenges A significant ISP business must be planned, installed and maintained.

78. May 23, 2003PLC HSI Overview78 BPL Institutional Challenges There remains some question about the credibility of BPL Industry. –There is still a negative Media Fusion legacy. –The industry is still in its infancy. –Startup vendors tend to over promise and under deliver.

79. May 23, 2003PLC HSI Overview79 BPL Institutional Challenges Regulatory issues –Electro-magnetic emissions & radio frequency interference Changes to FCC Part 15? –Competition for spectrum utilization –Joint use of utility plant –Existing hardware standards & codes (FCC, ANSI, IEEE, NESC, UL) may not be adequate or appropriate.

80. May 23, 2003PLC HSI Overview80 BPL Economic Challenges BPL Vendors –Does the company have adequate funding, competencies, experience to complete development and continue operations until sustainable finances? –Can the company produce and distribute the components at target costs? –Can the company provide adequate training and support services.

81. May 23, 2003PLC HSI Overview81 BPL Economic Challenges Not in full commercial production – Part II –What are the components really going to cost? –Acceptable hardware price points may not be reached until sufficient quantities are manufactured. –Backwards compatibility not certain. –Competing systems are not interoperable.

82. May 23, 2003PLC HSI Overview82 BPL Economic Challenges Each injection point must be connected to a high speed (>>T1) network access point (NAP). –Requires capital investment. –Requires significant recurring access expense.

83. May 23, 2003PLC HSI Overview83 BPL Economic Challenges Market Issues –Market demand for broadband appears to be extremely sensitive to price point. –Value added upstream services will be necessary to stimulate demand for broadband. –Value added upstream services may be necessary to achieve profitability for BPL business.

84. May 23, 2003PLC HSI Overview84 BPL Economic Challenges Market Issues –There will be competition between and among PLC vendors with systems that are not inter- operable. –There will be competition from other broadband technologies (fixed wireless, DSL, fiber, cable, satellite).

85. May 23, 2003PLC HSI Overview85 BPL Economic Challenges Public Utilities –Does the utility have commitment to launch and continue operations until sustainable, acceptable financial viability? –Can enough subscribers be signed up to be economically viable? –Can equipment be procured at competitive price points? –Can ISP and upstream value-added services be offered at prices that are acceptable to market? –Can the utility provide adequate technical support and training?

86. May 23, 2003PLC HSI Overview86 BPL Economic Challenges Rural Cooperatives –Sparsely populated service areas mean that the capital investment will be spread over fewer total subscribers. –Broadband market penetration may be lower, initially or in the long term than in urban and suburban areas. –There is limited availability of high speed network access points near necessary injection points in many cooperative’s service territories.

87. May 23, 2003PLC HSI Overview87 Conclusions BPL appears technically feasible. There are many as yet unresolved technical, systems, institutional and economic issues. BPL is not yet in commercial implementation in the U.S. M@in.net, Current Technologies and Amperion appear closest to commercial launch.M@in.net An economically feasible solution is not certain for electric cooperatives.

88. May 23, 2003PLC HSI Overview88 Conclusions We don’t know what we don’t know...

89. May 23, 2003PLC HSI Overview89 NRTC Activities Closely monitor industry developments. Continue discussions with existing and new PLC developers. Collaboration with NRECA CRN on special research project beginning April 2003 to investigate the leading vendors and design field trials for cooperatives. Closely monitor utility trials, pilots and pre- commercial deployments. Commission NRTC Member field trials and pilot projects in 2003/2004.