®

IBEC BPL Solutions

Bridging the Digital Divide
Maryland Broadband – January 4, 2006

® IBEC, Inc.
290 Dunlop Blvd., Suite I
Huntsville, AL 35824
256.492.1000
www.ibec.net
 Overview

• IBEC History and BPL Overview

• BPL Internet Access Market & Opportunity Analysis

• IBEC BPL Technology and Architecture

• IBEC BPL Pilot Programs in AL, VA, and IN

• BPL Opportunities in the State of Maryland

® ®
 IBEC, Inc.
• Established in 2003 for BPL; ISP Services Since 1995

• Offices in Huntsville and Hokes Bluff, AL

• Full-service Internet Service Provider, Serving Over 3,000

Dial-up Customers in Northern Alabama and Georgia, USA

• Existing ISP & Service Relationships with Electric Utilities

• Mission - Close the “Digital Divide” Between Well-Served

and Underserved Markets Via BPL by Empowering the
World’s Broadband ®

® ®
 IBEC BPL Model & Solutions
• Model - Full-Service ISP Solutions at Competitive Prices or
Equipment Sales Under License and/or Franchise Agreement

• Turnkey Solution - IBEC Provides Equipment and

Services; Utility Provides Infrastructure and Customers

• Technology Delivers Fully-IP-Based, Always-On BPL and

Wi-Fi Internet Solutions to Utilities & Their Consumers

• BPL Internal Utility Grid and Surveillance/Security Applications

• Solutions are Optimized for Low-Density Marketplace

® ®
 BPL Receives President’s Support
"There needs to be technical standards to make possible new
broadband technologies, such as the use of high-speed
communication directly over power lines.
“Power lines were for electricity; power lines can be used for
broadband technology. So the technical standards need to
be changed to encourage that."

President George W. Bush

® ®
April 2004
 BPL - the Future is Bright…
“Powerline technology holds the great promise
to bring high-speed Internet access to every
power outlet in America.

The future is bright for powerline

broadband.”

FCC Chairman Michael Powell

® ®

July 2004
New FCC Chairman’s Comments on BPL

“Because power lines are ubiquitous — reaching

virtually every community and every home —

BPL systems have the potential to become a

last-mile solution throughout the United States.”

New FCC Chairman Kevin Martin

April, 2005

® ®
 Broadband for Underserved Markets - USA
Availability of Residential Access to DSL or Cable Data Service
40 37
35
Percent Available

30
24
25
21
20 18 Underserved
15 47 Million
10 Residences
5
0
Sources: Yankee Group & Gartner Group

Both Limited Waiting Never

61% of U.S. households are “waiting” or will “never” have cable or DSL.
Source: Hughes Network Systems, 6/03
® ®
The Digital Divide in the USA
Rural vs. National Broadband Adoption
Broadband Users At Home

50
45
40
Millions of Users

35
30
25
20
15
10
5
0
2000 2001 2002 2003 2004
Year
Nation Rural

Source: Pew Internet & American Life Project, 2004

® ®
 BPL Deployments in the USA
Avista Princeton South Central
Douglas PUD
Indiana REMC
Indianola Municipal Solvay
Chelan PUD Bowling Green
AEP Electric
RPU Lebanon Orange & Rockland
Idaho Power Consumers City of Sherril
Cinergy
Clyde
Northeast Utilities

United Illuminating
ConE
d

DQE
PG&E
PEPCO
SMECO
Sierra Pacific City of Manassas
Central Virginia Co-op

LADWP Duke City of Salem

Progress Energy

San Diego Santee Cooper

Gas & Electric
New Horizon
Cullman Co-op
APS OPPD
Fayetteville Habersham EMC
Ameren
Southern Company
Hawaiian Electric City of Burnet CenterPoint
HILCO Co-op City of Weimar
Courtesy:
Commercial Deployment
® ®

Trial Deployment
 USA Co-op Member Broadband Preferences
Preferences of Co-op Members for Broadband Service Providers

60 50
Provider Preference, %

50

40

30 25

20 15
10
10

Local Phone National ISP Satellite Electric Coop

50% of Co-op Households Prefer to Buy Broadband from Their Co-op
Source: Touchstone Energy Services Survey, 10/03
® ®
 IBEC BPL Technology Summary
• Fully Internet-Protocol Based Solutions
– Fully “Open” Broadband Network on Power Line
– Maximum Flexibility in Adding New Features
– Takes Full Advantage of Other IP Possibilities
– Makes Future Upgrades Quick and Easy
– Solution Fits Almost Any Existing Power Network
– Provides Lowest-Cost BPL Solution Available

• Maximum Reuse of Existing Equipment

– Capacitive Coupling of Signals Onto Power Lines
– Bypasses Transformers to Connect to Customers

® ®
 IBEC BPL Technology Summary
• Customer Interface Flexibility with BRADs
– BPL to the Power Outlet Via Small Powerline Modems
– BPL to the PC Via IEEE 802.11 Wi-Fi Modems

• Regenerators to Boost Signals to the End of All Feeder

Circuits (Universal Coverage)

• MV Backbone Data Rates Up to 85 Mbps

• In-Premises Customer Data Rates Up to 8 Mbps

• Internal Utility Grid Applications and Homeland Security

Available Via BPL Video Services

• Solution is Conditionally-Approved by the RUS

® ®
 How the BPL System Works
Medium Voltage
Distribution Lines

Low-Cost
IBEC Coupler
&
Impedance
Matching
Regenerator
Units

110 V

In-House
Internet Customer Access
Unit
(BPL Modem)

® ®
 BPL Network Diagram
Broadband To Other
MV Distribution Regenerator
Feeders (3-4) Customers Distribution
BR Units
4-36 KV BR
U (BRUs) Transformer
2 U Broadband
Regenerator
&

3 Unit (BRU) 4 LV
Secondary
MV Power Distribution Lines
Power 85 Mbps Broadband IP Backbone
Substation ~ 3500’ 0’ - 3500’
~ 3500’
BR BR BR
U U U
802.11 Wi-Fi 802.11 Wi-Fi (~300’)
SM Fiber 802.11 Wi-Fi
12 Strands
Gig-E To Other
Substations
110 V
Substation Detail < 300 ft

Regional BRAD 5
Cisco 7200-Series
Access Router / Gateway
Communications Ethernet
Center or USB
Or
1 DNS /
Billing Utility Office
MV Coupler
Servers
Typical
Residential
MM Fiber Consumer
100M-Ethnt Head-End Modem
& Fiber Xcvr
Interne The BPL System consists of the:
PSTN
t n x T1 1. Head End / ISP Access Connection
OC-3 Cisco 3600
n x 45
PRI 2. Substation Router/Couplers
Voice IP-based broadband Internet access over the Router 3. Regenerator Units (BRUs)
existing electric power distribution network
4. Customer Access Coupling
Mbps • Data • Voice • Video SM Fiber
Security 5. Broadband Access Device (BRAD)
Gig-E

® ®
IBEC BPL Pilot Programs

and Equipment

® ®
 Cullman Electric Co-op Pilot Program
Technical Pilot: Outdoor Field Laboratory on Two-Mile Run
• CEC serves more than 36,000 homes and businesses
in over 16 incorporated townships and 3 counties in
Alabama with 3,000 line miles

• Deployed early 2003; Serves as IBEC’s Outdoor Lab

– Operational since May 2003

– Always–on, 256+ Kbps bi-directional service

– Recorded bi-directional data throughput rate of 7.2 Mbps

– Incorporates video surveillance and Homeland Security applications

– Experiencing increased demand spurred by word of mouth

® ®
BPL Equipment for Medium-Voltage Lines

1st- Generation Unit 2nd-Generation Unit

IBEC BPL Regenerator Units

® ®
 Typical Customer BPL Access Scenarios

BPL Internet Access Using BPL Internet Access Using

1st-Generation HomePlug Modem 2nd-Generation UPA Modem

® ®
 Wireless Internet Access via the BPL
Regenerator Network Along the Powerline
® ®
 CVEC Market Pilot Program
• Operating a “Market Pilot” with Central Virginia Electric
Cooperative – Nelson County, VA – Since June 2004
– Passes Approximately 900 Customers On 111 Miles of Line
– Longest Single BPL Feeder Circuit in the World - ~ 13 Miles Long
– Pre-Deployment Surveys Indicated 30+ % Subscription Rate
– Service Offered to CVEC Members at $29.95 Per Month
– For Further Information, Visit CVEC’s Web Site - www.forcvec.com

• Goal Was to Prove the Market Demand With a Much Larger

BPL Deployment and To Test Service Model with Utilities

• Contract in Place for Full System Deployment Following Pilot

® ®
 CVEC Pilot Customer Feedback

“I’m Really Delighted.

It’s Fast and It’s Really Simple.

It’s the Completion of Paradise!”

Ms. Ellie Withers
CVEC Pilot Customer
® ®
 SCI-REMC Market Pilot Program
• Market Pilot with SCI-REMC – Martinsville, IN – Operating Since Dec. 2004
– Largest Electric Cooperative in Indiana - 34,000 Members Over 3,000 Miles of Line
– Passes Approximately 700 Members Over About 59 Miles of Line
– Serving 174 Paying Customers at $29.95 Per Month; Many More Waiting
– Pre-Deployment Surveys Indicate Very Strong Member Interest
– For Further Information, Visit SCI’s Web Site - www.sciremc.com

• Goal Was to Prove Market Demand in Second Locale and Begin Full
Deployment of BPL Services to Cooperative Members

• Contract in Place for Full System Deployment Following Pilot

® ®
SCI-REMC Pilot Customer Feedback

“We Really Appreciate Your

Bringing This To Us.

This Has Been a God-send!”

Walt and Karen Dolzall
SCI-REMC Pilot Customers

® ®
 The Keys to IBEC’s BPL Solution
• Proven IP-Based Technology, Tested Over Live Electric Circuits

• Solution is Conditionally Approved by RUS for Full System Deployment

• Turnkey Solution With Minimized Financial Investment and Risk by Utility

• An Established, Experienced Broadband Service Provider

• 24 x 7 ISP Customer Support and Back Office Already In Place

• Existing, Successful, Long-Established Electric Utility Partnerships

• Rapid Deployment of BPL Services Using Existing Power Lines

® ®
 The Keys to IBEC’s BPL Solution
• IBEC’s BPL Solution Inherently Encompasses Both Wired and Wireless
Solutions With No Additional Infrastructure

• High-Speed, Always-On “Broadband Internet to the Power Outlet”

Capability Delivered to Every Power Outlet in the Customer Premises

• Wi-Fi/802.11 BPL Solutions Direct From the Pole to the PC if Preferred

• IP Video Surveillance System for Advanced BPL-Based Security

• Host of New Applications To Provide Electric Utility System Improvements

• Solution is Optimized for Underserved Markets and Low Customer Density

® ®
International Broadband Electric
Communications, Inc. (IBEC)

290 Dunlop Blvd., Suite I

Huntsville, AL 35824
256.492.1000 - voice
256.456.1406 - fax
Email: info@ibec.net
Internet: www.ibec.net
®