Dec 27, 2001 : Yankee Group Sees Signs of PLC Growth

📅 December 27, 2001 - Powerline communications (PLC) is a promising but stilldeveloping technology that aims to provide broadband connectivity to homesand businesses using medium- and low-voltage powerlines. Though talked aboutfor several years, it is beginning to see commercial success primarily inEurope, according to Yankee Group (yankeegroup.com) research.

The United States has proved an unsupportive environment for PLC. Even so,interest in PLC here has persevered. Drivers include the growing appetitefor broadband connectivity, the inability of incumbent telcos to meet thisdemand in a timely manner, and the competitive advantage befalling utilitiesable to satisfy some of this demand with existing distributioninfrastructure. In the recent Yankee Group report entitled "Watt's Up withPowerline Communications," analyst Seth Libby provides a look at PLC byreviewing the technology, discussing its applications and recent commercialgains, and profiling current U.S. PLC vendors.
According to Libby, "At this point, it's clear that PLC works. Where itworks well, however, is a different question." PLC is "not yet ready forwide-scale deployment in the United States, and won't be until acommercially viable medium-voltage PLC solution is available," says Libby.He points out, however, that owing to recent advances for PLC in Europe, andthe efforts of a handful of U.S. PLC vendors - including one backed byAmerican Electric Power , a major U.S. power company - "PLC is closer tobeing a commercial reality in the United States than ever before."
Libby believes that beta tests scheduled by each of these firms over thenext 12 months will be crucial to resolving outstanding technical hurdles,standardizing equipment and deployment techniques, and building interest andpartnerships with utilities.

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