Current builds out Internet overlay onto existing electric wires, allowing services that are traditionally provided via phone lines, cable modem and DSL connections. Using the Current BPL modem technology, DirecTV customers will be able to access the Internet and voice-over Internet protocol (VOIP) services simply by plugging a BPL modem into nearly any manner of electrical outlet in their home, according to a joint statement issued by the companies.
Under the agreement, DirecTV gains access to Current’s BPL network, initially limited to the Dallas/Fort Worth area. According to Current, that network will cover approximately 1.8 million homes and businesses in the Dallas area “over the next several years.” The deal also gives DirecTV the ability to add markets in other areas of the country as Current builds out its network.
“Consumers in Dallas will have a compelling new choice for their broadband service and, at the same time, feel good about the fact that the same Internet network is helping to improve the efficiency and reliability of the electric grid while reducing its environmental impact,” said Tom Casey, CEO of Current.
One of the primary benefits of the deal to DirecTV is that the BPL technology will allow the satellite provider to begin to compete with cable TV companies that offer “bundled” packages that include Internet access, TV and digital telephone services together.
While DirecTV currently partners with AT&T and Qwest to bundle its TV services with the voice and data products offered by those major telecoms, DirecTV CEO Chase Carey told the Reuters news service in May that his company wanted to test out BPL in a “top 50 city” in which the BPL service could be offered to more than half of the city.
Current — a company in which DirecTV’s parent company Liberty Media Holding Corp. owns an equity share — was a convenient match for DirecTV.
“Our agreement with Current gives our customers another high-quality, easy-to-use option to pair broadband services with DirecTV’s video offerings,” said Evan Grayer, vice president of broadband for DirecTV. “By choosing this bundled option, DirecTV customers will now be able to enjoy fast, reliable and secure high-speed Internet service anywhere they have a power outlet in their homes.”
In their joint statement, the companies described BPL as an “easy-to-use symmetrical service” that is capable of sending data faster than the “typical cable modem.” In a consumer market where interactive online gaming and the downloading of large digital content files — like high-quality adult videos, for instance — are increasingly popular uses of the Internet, speed is of the essence for any service provider.
According to the website for Current Communications, a subsidiary of the Current Group that provides service in the Cincinnati, Ohio area, basic BPL service starts at $19.95 per month for a package with a maximum speed of 512Kbps. More robust packages include an option priced $29.95 per month for a top speed of 1 Mbps, with the premium package set at $39.95 per month for a maximum rate of 3Mbps.
