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RE: [RFI] From Communications Daily re: BPL

To: <aa6yq@ambersoft.com>, "Ford Peterson" <ford@cmgate.com>
Subject: RE: [RFI] From Communications Daily re: BPL
From: "EDWARDS, EDDIE J" <eedwards@oppd.com>
Date: Wed, 1 Sep 2004 08:02:46 -0500
List-post: <mailto:rfi@contesting.com>
You are all missing one important detail that could make BPL worthwhile
even if it doesn't get but a small share of the internet business; as I
and others have mentioned here on "RFI" before, the real reason for the
"data pipe" into the home is to provide value-added electric services
that can be added to the electric bill.  

Once there's a data link to most homes, an electric utility can provide
Outage Detection (faster restoration), Outage Notification, Distribution
Automation, Automated Meter Reading (saves utility $), Energy Load
Management (for discount in rate), not to mention other more futuristic
possibilities.  Some of these are services that electric customer want
according to some polls, and others are functions that utilities desire
to reduce operating costs.  

The only question is which "data pipe" will be the least expensive
overall including capital, operating and maintenance costs.  The only
way for them to find out is for some of them to roll out the different
systems and see which ones meet the budget projections and which ones do

73, de K0iL

-----Original Message-----
From: rfi-bounces@contesting.com On Behalf Of Dave Bernstein

I agree that we should stay out of the financial projection business,
Ford. We should be in the "raise reasonable doubts" business; for

-----Original Message-----
From: rfi-bounces@contesting.com [mailto:rfi-bounces@contesting.com] On
Dave-AA6YQ wrote:
"One doesn't need expertise in economics to point out the flaws in BPL's
economics any more than one needs expertise in calculus to point out the
flaws in 2+2=22; they are equally glaring and egregious. Attempting to
compete with cable and DSL in urban and suburban areas, for example, is
ludicrous; for a latecomer to displace a dominant product with an
undifferentiated product would require hundreds of millions of dollars
in marketing expense alone, ignoring the rollout, deployment, and
still-unscoped RFI mitigation costs. In rural areas, the fiction that
BPL is a "last mile" solution becomes obvious in the need to deploy
repeaters, transformer bypasses, and other pole-mounted equipment to
access a sparse user population; WiMax will have the clear advantage

Dave, and others...

The ARRL has taken the position to not attack BPL on its financial
merits.  This is the correct position to take since the ARRL has NO
basis to understand the economics of being an ISP.

As an accountant, I am very familiar with the $$$ behind the ISP
business.  ...snip

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