Perhaps the most important regulation addresses signal interference -- BPL's biggest stumbling block. Amateur radio operators and some federal safety agencies have raised concerns about the effect of BPL on their communications signals. Without the right technology, it could create more static on lines that people are already using.
"Any time you put a signal on top of a metallic object such as a power line, it's going to radiate and I'm going to hear it," said Jim Heynie, president of the American Radio Relay League, a national amateur radio association. "The industry has not addressed the reception problem."
The FCC itself is trying to temper expectations for BPL. After the technical issues, it faces major regulatory hurdles.
Power companies are not regulated by the FCC, but by local public utilities commissions (PUCs). The FCC just creates rules to open the door for companies to offer broadband through their wires, but doesn't create rules for the wire itself. If power companies decide to push broadband aggressively into the household, a regulatory battle would likely ensue.
"There's very serious debate between the power companies and the local PUCs," the FCC's Thomas said. "We can foresee a situation where regulations could kill the infant business before it's born."
BPL proponents counter that the technology has improved to the point that communities can safely flip the switch. If the FCC's proposed rules take off, these people argue, there's a good possibility that power lines will begin delivering data into homes.
"The only knowledge it takes is to find a wall plug," Thomas said.
Putting BPL to the test
From an industry point of view, the FCC's decision could open up a new front in the escalating war to sell broadband to households across the country. Power lines would join coaxial cable, telephone lines and emerging "last mile" wireless technology as conduits for delivering data to homes.
The testing of reworked BPL service is already under way in a handful of communities, including Cincinnati; Allentown, Pennsylvania; and Manassas, Virginia.
Opening the broadband access market to a third industry with considerable clout could stir up an already bubbling pot. Cable companies currently lead providers of telephony-based DSL services in broadband market share in US households. However, figures from the fourth quarter of 2003 show that cable's growth rate has begun to slow, relative to DSL, according to a study conducted by Leichtman Research Group.
Even so, DSL still has a long way to go to catch up. It accounts for 36 percent of the US broadband market, with the remaining 64 percent served by cable. Much of DSL's recent gains stem from low-price plans designed to compete against a more expensive, though faster, cable service.
"The FCC wants to see a third broadband provider out there, and they want it to be facilities-based," said Brett Kilbourne, the director of regulatory services at the United Power Line Council, an organisation of electric companies interested in BPL.
CNET News.com's John Borland contributed to this report.
