WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 100 / 356
5.2.3.2 PLC cases in USA
For any electric utility considering entering the BPL market, it is strongly advised that a
properly constructed business case be developed. For example:
• Tier 1 (example: Minneapolis/St. Paul, MN). A hybrid wireless BPL system is most
attractive in a dense metro market, where this model demonstrates positive net
earnings within four years.
• Tier 3 (example: Syracuse, NY). As the market size becomes smaller, the classic
system architecture dominates currently, especially in terms of earnings margins,
which can exceed 60%.
• Tier 5 (example: Lynchburg, VA). In rural markets, capital costs for market entry can
be minimized by deploying a cellular or modular system. By contrast, high capital
expenses for a rural wireless-based BPL system result in a business case that is not
attractive.
Further market-based conclusions for the BPL business case include the following findings:
1. Key demographics of the market can in fact differentiate the potential take rates that
can be expected and should be studied prior to market rollout.
2. Density factors can drive the adoption of technology choice and can rule out some
technologies as being financially unattractive relative to others.
3. The importance of bandwidth delivery will differ based on the demands of the market
and the services being delivered.
4. Smart build. strategies should be employed whenever possible as a way to target
sub-markets in an optimal order to maximize financial returns and minimize funding
needs.
5.2.4 Technical Network Configuration and Equipment Suppliers
There are numbers of emerging BPL vendors in place today. In fact, a tally of potential
providers of systems in place in North America today includes more than 30 when one
considers the number of vendors in various stages of technology development. Eleven of the
leading BPL systems vendors in place today are: