Why Not Broadband over Powerline BPL

1
Why Not Broadband over Powerline
(BPL)? Regulatory Workshop Presented at
CompTel/ASCENT 2005 Spring Convention and
Exposition New Orleans, LA
February 17, 2005
2
Discussion Points

• Fonix Corporation Overview
• What is BPL?
• What is the current state of BPL?
• Utility regulatory challenges / questions
• Telecom regulatory challenges / questions
• Conclusions

3
Corporate Profile

• Fonix Corporation Headquarters in Sandy, UT
• (OTCB FNIX)
• LecSar Telecom sub. HQ in Atlanta, GA
• Integrated communications carrier
• Speech recognition leader
• Research and Development
• Alternate Access Methods
• Wireless
• BPL
• Other copper based alternatives

4
Utility POP
Utility Service Area
Carrier POP
Pad Mounted Xformer
Coupler
Transport over Fiber
Pad Mounted Xformer
Coupler
PSTN
(no Additional RpPlus Required)
Coupler
Pad Mounted Xformer
(Direct Tap to LV Side
of Transformer)
DHCP/Authentication Servers
VoIP Network
Fiber Distribution
VoIP Telephone
SONET Ring
Router
Pad Mounted Xformer
Router
Utility ADM
Analog Telephone
Pad Mounted Xformer
Internet
VoIP Telephone
Coupler
Pad Mounted Xformer
Transport over Distribution and
Transmission Infrastructure
Analog Telephone
BPL Infrastructure
5
Current State of BPL

• Testing by 20 electric utilities
• Limited Commercial rollout by 2 utilities
• not open access
• Speeds of approx 300 kbps on average
• Up to 1 Mbps depending on deployment
• New name brand manufacturers
• Mitsubishi
• Motorola
• Nokia
• Advanced chipsets emerging may permit higher
  speeds
• FCC clears BPL on interference issues

6
Utility Regulatory Issues

• Rights of Way / franchise rights
• State regulatory treatment
• Open Access to distribution infrastructure
• Affiliate transactions (brand, crews, equipment,
  etc.)
• Safety
• Capital investment
• Internal politics / inertia / culture
• FCC notching remote shut down database
• Reduced Capacity Margins
• FERC
• Regional Reliability Councils

7
Telecom Regulatory Issues

• FCC Final Rules transition period
• 12 months March 11 2006
• Universal Service Fund
• Inter-carrier Compensation
• Rights of way / pole attachment
• Utility
• ILEC
• Franchise rights

8
Conclusions

• Potential 3rd wire
• Cultural and speed to market issues
• Unresolved regulatory issues
• Bottom Line
• BPL is about 2-3 years away if utilities
  extract the value they have in the power grid.

9
Contact Information

• Michael Britt VP Regulatory Affairs Channel Dev
• LecStar Telecom, Inc.
• 4501 Circle 75 Pkwy Suite D-4200
• Atlanta, GA 30339
• email michael.britt_at_lecstar.com
• Cell 404-406-4812
• Phone [phone]
• Fax [phone]