International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC, Inc.285 Dunlop Blvd, Suite K
Huntsville, AL 35824256.492.1000www.ibec.net
Rural TeleCon ‘07
Introduction to IBEC’s BPL Solutions
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Overview
• IBEC’s Experience in Industry
• IBEC’s Equipment and Investment
Estimates
• IBEC’s Market Focus and Potential
• BPL Outlook
• Questions
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC’s Experience in Industry
• Established in 2003 for BPL; ISP Services Since 1995Offices in Huntsville and Hokes Bluff, AL
• Full-service Internet Service Provider, Serving Over 5,000 Customers in Northern Alabama and Georgia
• Existing ISP & Service Relationships with Utilities mostly Electric Cooperatives
• BPL 1st deployed in October of 2002
• Two commercial deployments- VA and IN, passing some 1,500 homes, via approximately 170 mile of power line, (average density is 9 homes/mile) and 300+ paying customers
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
• Model - Full-Service ISP Solutions at Competitive Prices With Modest Financial Investment by the Utilities
• Turnkey Solution - IBEC Provides Equipment and Services Utility Provides Infrastructure and
Customers
• Technology Delivers Fully-IP-Based, DS2 Based BPL wired connectivity and Wi-Fi Internet Solutions to Utilities & Their Customers
• Solutions are Optimized for Low-Density Marketplace
• Electric Cooperatives and Rural Utilities are IBEC’s Ideal Partners
IBEC’s Experience in Industry
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
DNS / Billing Servers
Internet OC-3 n x 45 Mbps
Power Substation
MV Distribution Feeders (3-4) 4-36 KV
MV Power Distribution LinesRegenerator
Unit
IP-based broadband Internet access over the existing electric power distribution network
• Data • Voice • Video Security
TypicalResidential Consumer
DistributionTransformer
&LV
Secondary
Wireless Router
Ethernet or USB
To Other Customers
The BPL System consists of the:1. Head End / ISP Access
Connection2. Substation Router/Couplers3. Regenerator Units 5. Wireless Router
Router / Gateway
PSTN n x T1 PRI Voice
Regional Communications
CenterOr
Utility Office
To OtherSubstations
Fiber
1
23
5 Substation Detail
Router
Head-End Modem & Fiber Xcvr
Fiber
MV Coupler
Fiber
802.11 Wi-Fi802.11 Wi-Fi
Regenerator Unit
Wireless Hybrid BPL Network
IBEC’s Experience in Industry
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
• Awarded $19.2 Million Loan from RUS Broadband Program in August 2005 (RUS’s 1st BPL Loan)
• Loan to fund deployment in 3 Cooperatives (Cullman AL, Central VA, and South Central IN) passing 105,000+ homes
• Submitted 2nd Application for $50+ Million in September 2006 to deploy 13 additional Electric Cooperatives passing more than 200,000 homes
• Currently working on 3rd Application with expectation of 20+
additional Cooperatives and approximately 400,000+ homes – to be submitted by mid 2008
IBEC’s Experience in Industry
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
• Tremendous Growth being experienced in BPL industry today
• Long-term benefits exist beyond broadband data services
• Current products offer bandwidth up to 80Mb of usable data
throughput, but like all IT, even greater things to come – SOON
• Power lines are the only truly ubiquitous “wires to the home”
IBEC’s Experience in Industry
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Commercial Deployment
Trial Deployment
City of Manassas
PPL
Cinergy
ConEd
DQE
PEPCO
Southern Company
Clyde
Consumers
Cullman Co-op
Ameren
South Central Indiana REMC
RPU Lebanon
Fayetteville
Indianola Municipal
OPPDAPS
Idaho Power
Hawaiian Electric
Sierra Pacific
PG&E
Santee Cooper
Progress Energy
Solvay Electric
Chelan PUD
Douglas PUD
Duke
Central Virginia Electric Co-op
AEP
SMECO
Avista
New Horizon
Bowling Green
Orange & Rockland
City of Salem
City of Sherril
Habersham EMC
HILCO Co-op
United Illuminating
Northeast Utilities
Courtesy:
City of Burnet
City of Weimar
CenterPoint
LADWP
San DiegoGas & Electric
Princeton
IBEC’s Experience in Industry
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Overview
• IBEC’s Experience in Industry
• IBEC’s Equipment and Investment
Estimates
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC Licenses Patented BPL Coupling & System Architecture Technology
IBEC Has Four (4) Pending U.S. Patents:
– BPL Regenerator System Architecture
– Enhanced MOV Capacitive Coupler Improvements and Methods
– Method of Coupling BPL Signals to Underground MV Power Lines
– High-Performance Impedance-Matching Device and Methodology
International Patent is Pending on the 2nd-Generation Architecture
The Company Expects to File Additional Patent Applications on:
– Feed Method for Delta Power Distribution Systems
– BPL AMR integration
– Additional New Technologies
IBEC’s Equipment and Investment Estimates
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Interference
Carriers
Nulled carriers
Frequency Spectrum
Notched carriers
OFDM Modulation
• Very Tolerant of Noisy Environments Seen in Power Lines
• Fixed Notching With Self-Notching Capability
• Remote Notching Capable (Required by FCC)
IBEC’s Equipment and Investment Estimates
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC’s Equipment and Investment Estimates
Access BPL Equipment
BRU CAU
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC’s Equipment and Investment Estimates
In-home / Customer Premises BPL Equipment
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC’s Equipment and Investment Estimates
IBEC’s Patent-Pending BPL Coupling Technology
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC’s Equipment and Investment Estimates
Medium-Voltage
Access BPLEquipmentInstallation
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC’s Equipment and Investment Estimates
• The average Electric Cooperative has approximately 2,200 miles of distribution power lines
• The average Electric Cooperative has approximately 18,900 Members
• IBEC’s current medium-voltage products require signal regenerator placement approximately every half-mile
• IBEC projects a conservative ~ 20% Member subscription rate
• IBEC projections based on the above numbers correspond to an ~ $5 Million BPL investment per average Cooperative
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Overview
• IBEC’s Experience in Industry
• IBEC’s Equipment and Investment Estimates
• IBEC’s Market Focus and Potential
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Mission Statement
“To become the leading provider of Internet Protocol (IP)–based
Broadband communications over electric Power Lines (BPL) to
rural and underserved markets in North America”
IBEC’s Market Focus and Potential
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Electric cooperatives are private, independent, member-owned electric utility companies
– Established in early 1900s to deliver at–cost electric service to rural consumers
There are 865 distribution electric cooperatives in the U.S.
– Serve more than 39 million people and 17 million homes and businesses
– Cover more than 2.4 million miles, which is 44% of the U.S. electric distribution grid and over 75% of the nation’s land mass
– Span 47 states and more than 2,500 counties
IBEC’s Market Focus and Potential
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Courtesy: NRECA
Approximately 75% of the US Land Mass and 44% of the US Distribution Miles are Co-Ops
IBEC’s Market Focus and Potential
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Rural Consumers Prefer to Receive Broadband from Their Cooperative
Co- op Member Broadband Preferences
25
1015
50
0
10
20
30
40
50
60
Local Phone National ISP Satellite Electric Co- op
% o
f Pro
vid
er
Pre
fere
nce
Source: Touchstone Energy Broadband Internet Survey, 2003
IBEC’s Market Focus and Potential
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Rural vs. National Broadband AdoptionBroadband Users At Home
05
101520253035404550
2000 2001 2002 2003 2004
Year
Mill
ions
of
Use
rs
Nation Rural
Source: Pew Internet & American Life Project, 2004
IBEC’s Market Focus and Potential
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Overview
• IBEC’s Experience in Industry
• IBEC’s Equipment and Investment Estimates
• IBEC’s Market Focus and Potential
• BPL Outlook
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
BPL Market Growth Projections
BPL is expected to grow by a compound annual
growth rate (CAGR) of 106% from 2006 to 2012,
with 33% of new broadband customers choosing
BPL and 12% of existing broadband customers
switching to BPL by 2012 (Research Reports
International, 2005)
BPL Outlook
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
IBEC has “signed” contracts equaling 07 projection
BPL Outlook
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
(Aggregate Value of Achieved Intelligrid)
$0
$100
$200
$300
$400
$500
$600
$700
Reliability
Productivity
Capacity
Bill
ions
Safety
Security
Quality of Life
Cost
Environment
Quality
Why do Utilities want BPL?
$671 Billion
Source: Electric Power Research Institute
Note: 20 year period
Intelligence
BPL Outlook
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
BPL is a Growing, Viable “Third Wire” option for Broadband Delivery Anywhere, but especially applicable to Rural Areas
Industry is still Young and Growing; Opportunities Abound not only in U.S., but Worldwide
IBEC currently has 16 Electric Cooperatives under Contract passing some 200,000+ homes, of which ~86% currently have ONLY dial-up service as an Internet Option
IBEC has received RUS Broadband funding for 3 Co-Ops; 13 More are now in Application Review, with More to Follow
Electric Utility Applications are a Huge Long-term Opportunity
BPL Outlook
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Overview
• IBEC’s Experience in Industry
• IBEC’s Equipment and Investment
Estimates
• IBEC’s Market Focus and Potential
• BPL Outlook
• Questions ??
International Broadband Electric Communications
285 Dunlop Boulevard SW, Suite K – Huntsville, AL 35824
256-492-1000 – [email protected]
Thank You
Contact Information:
International Broadband Electric Communications, Inc.
285 Dunlop Boulevard SW, Suite K
Huntsville, Alabama 35824
Telephone: 256.492.1000
Facsimile: 256.456.1406
Email: [email protected]