Another agency regulates Internet connection via power grid

Diego Remus on September 02, 2009

aneelOn August 25, the board of the National Electric Energy Agency (ANEEL) approved  rules for using the power grid for data, voice and image transmission and broadband Internet access via the technology of Power Lines Communications (PLC). In April, the National Telecommunications Agency had already approved the regulation of Broadband over Power Lines (BPL) technology, which allows broadband over the power grid.

The grid supplies 63.9 million customers in Brazil. What does this step mean, then, for the democratization of digital access? What does it mean for digital entrepreneurs?

The resolution that establishes conditions for sharing distributors’ infrastructure will allow significant advances in the nation, with significant stimulus of digital inclusion, since 95% of the Brazilian population has access to electricity through 63 utility companies and 24 cooperatives, bringing power to 63.9 million customers.

Other gains are also expected. Significant portions of the distributors’ earnings from the lease of the network for data transmission will be used to seek more equitable rates for consumers. The resolution states that part of the extra revenue from this service is marked for lowering rates. Moreover, it will offer another option for internet access, increasing the competition for existing forms (3G, WAP, cable, DSL, dial-up, etc.), which may help lower prices overall.

The PLC regulation involved the technical contributions of various technical areas of ANEEL, such as Regulation of Distribution, Economic Regulation, Economic and Financial Audits, and Concessions and Authorizations of Transmission and Distribution. The subject has been on ANEEL’s plate since 2006. The subject received public hearings from March 12th - May 13th, 2009. During this period, the regulating body received 163 contributions from officers in the electrical and telecommunications sectors, and from trade associations and consumers.

According to Link, AES Electropaul (through the newly created Electropaulo Telecom) already offers Broadband over Power Lines in the neighborhoods of Moema, Cerqueira Cesar and Pinheiros in São Paulo.

What do you think? Learn more in Questions & Answers about PLC, and leave your comments here on Startupi. There will be more posts to come: participate!

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