Two Enter Internet Battle

Consumers understand that when there is more competition in a market, there are lower prices. This is especially true in the computer industry where it is reported that 68% of households have a computer. According to the Computer Industry Almanac, the worldwide number of Internet users will exceed 1 billion this year with the United States leading with over 185 million users. The number of users will continue to increase as well as competitors, forcing companies to offer faster connections at a cheaper price. Two technologies that will lend a hand in allowing new players into the Broadband market are BPL and WIMAX.

Broadband Over Power Lines, BPL

BPL is a technology that allows Internet data to be transmitted over utility power lines and is also referred to as Power-line Communications or PLC. The technology works by modulating high-frequency radio waves with the digital signals from the Internet. These radio waves are fed into the utility grid at specific points, then travel along the wires and pass through the utility transformers into homes and businesses. One main concern by officials in the National Telecommunications and Information Administration (NTIA) and the Federal Emergency Management Administration (FEMA), is that BPL will interfere with radio systems including fire, police, short-wave and land mobile. There are other groups who are taking the initiative in realizing this potential including the IEEE which has begun to develop IEEE P1675, "Standard for Broadband over Power Line Hardware."

This technology has gained national attention with reports by the Wall Street Journal that industry powerhouses Google and Goldman Sachs have invested nearly $100 million into Current Communications Group, a company that provides high-speed Internet access over electrical power lines. According to Reuters, CCG will use the financing to deploy voice, video and data services in domestic and global markets. IBM is also currently researching the use of electrical power lines to provide internet access by opening a BPL center in Houston with CenterPoint Energy although IBM has declined to put a dollar value on the amount invested.

Worldwide Interoperability for Microwave Access, WIMAX

WiMAX, also known as IEEE 802.16, is a standards-based wireless technology that provides broadband connections over long distances and is intended for wireless