MANHASSET, N.Y. — Broadband over power lines, the use of the existing power grid to provide high-speed broadband communication services, is on the verge of becoming a viable competitor to existing cable and DSL Internet services, said several speakers during a news conference Thursday (Feb. 24).

Sponsored by an industry group called the New Millenium Research Council, the conference discussed a newly-released report by the council titled "Powering the Broadband Market in 2005 and Beyond."

Though the speakers painted a rosy future for the technology, they also conceded infrastructure, regulatory, and other issues need to be ironed out. Moreover, none of them presented clear statistical evidence of the technology''s growth, instead providing anecdotal examples of strong interest in broadband over power.

Moreover, with technologies such as WiMAX rapidly gaining momentum, broadband over power faces an uphill battle establishing a clear business case for companies to invest in.

"We need a strong business case and a cost analysis," said Barry Goodstadt, vice president and senior consultant for Harris Interactive, which is looking at market opportunities for the technology.

Goodstadt added that if broadband over power line service could be offered for $30 monthly, it could potentially wind up in 13 million households and present a $4.5 million revenue opportunity.

Already offering broadband over power line service is Communications Technologies Inc. (COMTek), which is deploying the technology in Manassas, Va., according to president and chief executive Joseph Fergus.

"We have a waiting list of 1,200 for BPL services," said Fergus, noting the service costs $28.95 per month. Fergus added that rival broadband providers in the area have been forced to reduce prices to compete.

Costs aside, the issue of what role utility companies would play in supplying broadband over power line services looms as a possible hurdle.

"Most utility regulation occurs at state levels," said Allen Hepner, executive director of the New Millennium Research Council. "It is unclear how broadband over power service would be regulated." He said considerations such as rights-of-way and pole access could create obstacles as each state could decide to impose widely divergent regulations.

Using the existing power grid structure to serve remote and underserved areas could also run into problems, speakers noted.

While the FCC clearly favors broadband over power to provide Internet access to rural America, issues such as home proximity and service distribution points emerge with existing equipment, according to Fergus.

"There needs to be repeaters every thousand feet, Fergus said. "As equipment improves, distance can become longer and wider."

A significant roadblock to broadband over power line implementation is interference from radiation of signals that have been known to affect transmissions of ham radio operators.

"This is a wild card," said Robert Olsen, professor of electrical engineering at Washington State University and the lone speaker to clearly express skepticism for broadband over power lines.

"The FCC requires that broadband over power line operators not provide harmful interference to users, but a standard has not yet been established for harmful interference," Olsen warned.

Harris Interactive''s Goodstadt replied that interference concerns would be minimized in newer power grids, which tend to bury lines underground rather than locate them overhead.