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Google, Goldman Sachs and the Hearst Corporation
have ponied up a combined $100 million to
invest in Current Communications Group,
hoping to rapidly expand the reach of broadband
throughout the country.
Current Communications, a Germantown, Md.-based
company providing broadband over power lines
(BPL), said the investment would offer consumers
a faster alternative outlet for voice, video
and data services.
"These investments provide us with
both capital and operating assistance as
we continue to roll out Broadband-over-Power
Line services to provide voice, video and
data services," William Berkman, chairman
of Current Communications, said in a statement.
BPL as a way of delivering high-speed Internet
access was scoffed at not so long ago. Broadband
transmissions over electric power lines
were a major hurdle for the industry, because
they are not shielded to prevent radio interference
in the same way as telephone and cable lines
are.
Without any such shield, BPL can cause interference
with certain radio frequencies, prompting
protests from amateur radio operators, in
particular.
However, in 2004, the Federal Communications
Commission (FCC) approved rules clearing
the way for commercial deployment of BPL.
The decision classified BPL as an unlicensed
service, with the rules primarily aimed
at limiting interference with licensed radio
services.
The FCC established "exclusion zones"
in areas near sensitive operations, such
as Coast Guard stations, where BPL must
avoid operating on some frequencies. Amateur
radio operators received no exclusions,
but the rules require the establishment
of a publicly available BPL notification
database to help identify and resolve harmful
interference claims.
Now with the powerful and diverse triumvirate
of Google, Goldman and Hearst -- new media,
Wall Street and old media -- tossing $100
million at the technology, the idea is likely
to gain speed. It is especially of growing
interest in rural areas where DSL and cable
service are not prevalent.
"With roughly two-thirds of the nation
still without broadband and many utilities
looking for means to upgrade their distribution
networks, the acceleration of Current build-out
is a clear win-win for consumers,"
Berkman said.