Platform X: The Power of PLC

Following the FCC's February ruling announcing it will phase out RBOC line-sharing requirements over three years, competitive providers of broadband local services that don't own their own plant are no doubt looking around for last mile alternatives.

One option, of course, would be for competitive carriers to attempt to build out new local infrastructure.

A second option, as suggested by Gregg Smith, CEO and chairman of Z-Tel Communications Inc., would be to move customers over to a UNE-P-based CLEC partner and then do line-sharing with that CLEC.

A third option could be for competitive service providers to ally with energy companies to get local loop access.

The first option doesn't seem to be realistic for most competitors, which are strapped for cash in this era of closed capital markets.

The second option seems like a good one, if companies like Z-Tel offer line-sharing capabilities to fellow CLECs. But the availability in this scenario could be limited based on what UNE-P providers offer this option and where.

The third option, however, seems pretty promising if power line communications systems work as sources say they do. Just consider the ubiquity of the power grid.

There are at least three possible scenarios for CLECs getting into the PLC local access game. There are CLECs like PPL Telcom that are subsidiaries of energy companies that are exploring PLC. There are independent CLECs that could simply sit back and wait until utilities roll out PLC services on a wholesale basis and buy those services. But there is a third, little explored, option that would require independent CLECs to be more aggressive in pushing PLC forward. In this option, the CLEC could partner with a utility to get access to electrical wires and then invest in and make plans to deploy the PLC equipment themselves.

Of course, I understand that most CLECs are short on cash and resources, and the promise of new technologies often disappears into smoke. But companies' whose lives depend upon finding a new path to customer homes and businesses might want to consider PLC as one alternative.

Until next time,

Paula Bernier
Editor in Chief

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