Economics ueber alles. From the ARRL Letter:
==> BPL: CITY OF MANASSAS TO END BPL SERVICE
Once touted as "the most successful BPL deployment in the nation,"
the City of Manassas has decided to get out of the BPL business, once
and for all. At a Special Meeting on Monday, April 5, the Manassas City
Council -- acting on a recommendation from the Manassas Utilities
Commission -- unanimously voted to discontinue Broadband over Powerline
(BPL <http://www.arrl.org/tis/info/HTML/plc/>) Internet service as of
July 1, 2010 to the approximately 520 residents and businesses who
currently subscribe to the service; these customers were told that they
have three months to find a new Internet service provider.
According to Manassas City Clerk Andrea Madden, there was no discussion
on the resolution to discontinue service and the motion was passed
"without incident."
With the motion made by Councilman Jonathan Way and seconded by Mark
Wolfe, the City Council cited three reasons for discontinuing BPL
service: a declining customer base, an annual income deficit of almost
$166,000 from providing Internet service, and a determination that AMI
<http://en.wikipedia.org/wiki/Advanced_Metering_Infrastructure>
[Advanced Metering Infrastructure] platforms don't require BPL. Way and
Wolfe favored shutting down the BPL system in November 2009
<http://www.arrl.org/news/stories/2009/11/19/11206/?nc=1>, the last
time this matter was brought to the Council's attention. "The City
needs to get out of BPL forthwith," Way said back in 2009. "It's not a
good product. The whole business is not financially sound and it never
has been."
Manassas residents pay $24.95 each month to receive Internet service
via BPL. In November 2009, the Utility Commission showed the Council
that little more than 500 residents and 46 businesses currently
subscribed to the service, which since 2008, has been run by the City
<http://www.arrl.org/news/stories/2008/10/16/10391/>. "It's costing a
little more to maintain the system than we projected in the budget,"
Manassas Director of Utilities Michael Moon told the Council. "The
original projections were that the customer base would be double this."
In September 2008, the Manassas City Council voted to assume control of
the BPL service from COMTek <http://www.comtekbroadband.com/>, the
private company that served (back then) approximately 675 residents.
In January 2009, there were 637 residential and 51 commercial BPL
subscribers in Manassas. In February 2010, those numbers had shrunk to
457 residential and 50 commercial subscribers. The Utilities Commission
said that the total revenue brought in by BPL for FY2010 was almost
$186,000, but the expense of keeping up the City-owned system was
costing the ratepayers a little more than $351,000, resulting in a net
loss of almost $166,000.
"In October 2003, the Manassas City Council was told that it could
expect as much as $4.5 million in revenue from awarding a 10 year BPL
franchise," said ARRL Chief Executive Officer David Sumner, K1ZZ.
"Instead, six months later, BPL had turned into a money pit for the
City of Manassas. Anyone thinking of investing in BPL would do well to
learn from the Manassas experience."
In November 2009, Manassas' Assistant Utilities Director (Electric)
Gregg Paulson told the ARRL that they had "every intention of putting
BPL Internet service in the budget and the Council can decide its fate
as they work through the budget process." Paulson also said that while
Internet service to consumers would "probably" be the only thing that
would be cut if the Council decided to forego BPL, he left the door
open as to using the BPL infrastructure for other purposes: "We still
own the BPL network, but we may or may not use this network for utility
monitoring or other AMI purposes."
But according to the resolution passed by the Council, the Manassas
Utilities Department will not be using BPL for AMI, but instead will
use "a combination of fiber and wireless technology exclusive of the
BPL." According to the Agenda Statement for the Special Meeting, the
BPL equipment will be removed from the system and "inquiries will be
made regarding the salvage value."
Sumner said that the ARRL's concern was not with the business plan --
that he termed "obviously flawed" -- but with "the interference to
licensed radio services -- and in particular the Amateur Radio Service
-- inevitably caused by putting radio frequency energy on unshielded,
unbalanced conductors. Manassas was touted as 'the most successful BPL
deployment in the nation' when FCC Chairman Michael Powell visited the
site with much fanfare -- and, the ARRL maintains, in violation of the
FCC's own rules -- on the eve of the FCC's vote to adopt inadequate
protection for licensed radio services against interference from BPL
systems. The taxpayers and ratepayers of Manassas are not the only ones
who benefit from the end of this ill-considered foray into BPL. Radio
amateurs in the Manassas area have good reason to celebrate, for they
have spent countless hours documenting the widespread interference
caused by the system."
BPL technology uses the electricity grid in a city and the wiring in
individual homes to provide direct "plug in" broadband access through
electricity sockets, rather than over phone or cable TV lines. Because
BPL wiring is physically large, is often overhead and extends across
entire communities, these systems pose a significant interference
potential to over-the-air radio services, including Amateur Radio.
