BPL given the 'green light' by FCC

Federal regulators on Thursday gave the go-ahead to a new
technology that enables powerlines to offer Internet access.

They also adopted a rule that makes it easier for the Bell local phone companies to replace their copper wires with fiber.

Michael Powell, the Republican chairman of the Federal Communications Commission, said the rules are aimed at speeding up the construction of high-speed networks.

His point was illustrated shortly after the FCC vote, when SBC Communications said it would "dramatically" speed up its plan to construct a fiber-based network that reaches 18 million households.

Yet critics such as FCC Commissioner Michael Copps, a Democrat, argue the new rules will limit competition, keep prices unnecessarily high and confuse investors.

Electric issue
The power line decision was meant to address concerns about interference. The FCC set specific rules for power companies on how to avoid interference, especially with amateur radio operators.

The agency avoided the imposition of stricter rules regarding emergency 911, disability access and contributions to universal service, a fund that subsidises phone service in areas where it is expensive to deliver.

"By crafting a minimal regulatory framework," Powell said, the FCC is advancing a pro-competition agenda that will make high-speed Internet access a reality for almost every American. He noted that power lines go into nearly every U.S. home.

Copps, who partly dissented with the decision, argued that the FCC's failure to address the stickier issues might actually hinder growth of powerline technology. He said the threat of future regulation may make investors leery of
getting involved. "If we want investment in broadband over power line, we need certainty and predictability," he said.

Fiber rules
Copps also objected to a new rule that exempts fiber "loops" in all residential neighborhoods from an FCC requirement that guarantees open access to competing
Internet service providers.

The local loop is the mass of wires that extend from the nearest central switching office of a local phone company to the homes and businesses it serves.
The new exemption only applies to high-speed Internet service delivered by fiber connections to homes. It expands on a prior rule that exempted new residential developments hooked up with fiber.

Yet network operators still have to let rivals use copper and fiber wires to sell regular phone service to consumers. That rule stems from a major 1996 law whose aim was to foster competition in the local phone market.

Still, the vote reflects a big victory for the Bells. They have argued that there's little incentive to spend big bucks to replace copper with fiber if rivals can use those fiber connections as well. Fiber offers much greater Internet speeds and the promise of new services such as pay TV over phone lines.

The three Republicans on the five-member FCC board proved sympathetic to that argument. They say fiber loops ought to be exempted so investment won't get stifled.

Still, the FCC board did require the local carriers to ensure that the fiber loops extend to within 500 feet of residential homes.

Industry reaction
Copps and fellow Democrat Jonathan Adelstein said the rule is a setback to competition.
"The local loop represents the prized last mile of communications," Copps said. "Putting it beyond the reach of competitors can only entrench incumbents who already hold sway."

Consumer groups also blasted the decision.
"The FCC today took our country one giant step closer toward solidifying a two-company domination -- the local cable and telephone providers -- over the consumer Internet market," said Gene Kimmelman, senior policy director of Consumers Union.

The Bells, on the other hand, reacted with jubilation. Shortly after the FCC vote, SBC said it will "dramatically accelerate" plans to build a fiber-based network "in two to three years rather than five years as previously announced."
The fiber would replace copper in many parts of the network and offer the promise of "super high-speed data, video and voice services," SBC said.

This story was supplied by CBSMarketWatch.
For further information see www.cbsmarketwatch.com.

Additional from ARNewsLine:

AUDIO AVAILABLE OF FCC DECISION TO PROCEED WITH BPL

The FCC has acted to approve the implementation of Brodband Over Powerline technology (BPL) for widspread Internet access in the United States. We were able to get in and record part of the October 14th proceeding which is now posted as a downloadable MP3 file at our website: www.arnewsline.org/quincy under the title of "EXTRA".

The speakers you will hear inorder of their appearance are FCC Commissioners Michael Copps, Kevin Martin, Jonathan Adelstein and FCC Chairman Michael Powell. The presentation concludes with the actual vote to proceed with the implementation of BPL

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