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Nortel Digital Power Line Joint Venture

The story is picking up speed. (See UFTO Note March 6 for the last installment.) Nortel and United Utilities have formed a joint venture to pursue the Digital PowerLine Technology worldwide. Part of the Nortel group in Atlanta will form the nucleus for the joint venture’s North American effort.

As last week’s press release explains, 10 major utilities around the world are already committed to deploy DPL. The situation in North America is less far along, due to the technical issues that need to be resolved, however the forming of the joint venture will certainly accelerate the momentum.

Considerably more technical information is now available on the new website at:
http://www.nortel.com/powerline/menu.htm

As explained in the March 6 UFTO Note, two unnamed US utilities are already providing system data, as Nortel continues to work on the details on their business case for N. America. Many utilities have contacted Nortel and indicated a readiness to get involved immediately. The company is keeping a list, but will go slow until it feels it has enough information to proceed.

If your utility hasn’t contacted them yet, it might be wise to get on the list, if not pursue it a bit more aggressively.

The contact is: Barbara Warren, Senior Manager, Digital PowerLine Marketing
770-708-5117, bswarren@nortel.com

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Here’s the text of the latest press release:

Nortel: Joint Venture Formed to Market Digital PowerLine Technology Worldwide; Initial Agreements Reached — Serving More Than 35 Million Homes

March 26, 1998

LONDON, March 25 /PRNewswire/ via NewsEdge Corporation — Nortel (Northern Telecom) and United Utilities PLC today announced the formation of a joint venture company, NOR.WEB DPL, to develop and market Digital PowerLine solutions on a worldwide basis.

Digital PowerLine, which was developed jointly by Nortel and Norweb Communications, part of United Utilities PLC, enables data communications, including Internet traffic, to be transmitted over electrical power distribution networks at speeds of more than one Megabit per second-up to 10 times faster than ISDN, currently the fastest speed generally available.

Nortel and United Utilities will each take a 50 percent stake in the joint venture, which will develop and market Digital PowerLine equipment, software and services. John Beckitt of United Utilities will serve as chairman and Steve Pusey of Nortel has been named chief executive officer.

In conjunction with the formation of the joint venture, NOR.WEB is also announcing that to date, 10 international utilities have signed agreements declaring their commitment in proceeding with initial market deployment of the Digital PowerLine technology.

The potential market for Digital PowerLine through these agreements is more than 35 million homes in seven European and Asian countries.

“We believe that the roll-out of Digital PowerLine will enable the mass deployment of high-speed data access and applications on an unprecedented scale in these markets,” said Steve Pusey, chief executive officer of NOR.WEB. “This first wave of customer agreements demonstrates the scale of global interest in Digital PowerLine.”

“NOR.WEB takes the collaboration between Nortel and Norweb Communications on Digital PowerLine to a new level of commercial activity,” said John Beckitt, chairman of NOR.WEB. “NOR.WEB power utility customers will find that Digital PowerLine provides a low-risk, high-return investment that can be implemented step by step in line with demand.”

A new version of the Digital PowerLine technology (DPL 1000) was launched on March 18, 1998 at the CeBIT ’98 exhibition in Hannover, Germany. Applications over DPL 1000 are planned to support bundled information and energy services. Examples include high-speed Internet access, multimedia, smart applications/remote control, home automation and security, on-line banking/shopping, data back-up, telecommuting, entertainment, and planned IP telephony.

The new Digital PowerLine solution consists of a network interface at the substation, a data unit on the side of the subscriber’s house, and a stand-alone PowerLine communications module. In addition, a complete software and management capability adds functionality and flexibility to the system. The total package provides a competitively positioned access network which integrates seamlessly into today’s WAN networks.

Today, NOR.WEB is announcing agreements with the following seven companies: Norweb Communications of the UK, Vattenfall and Sydkraft of Sweden, RWE and EnBW of Germany, Singapore Power, and EDON of the Netherlands.

NOR.WEB will utilize Nortel, and its associated joint ventures, as one of its primary, worldwide channels-to-market-leveraging Nortel’s extensive capabilities to integrate total network solutions.

Norweb Communications provides an extensive range of advanced voice and data services and has achieved significant success in providing resilient networks for businesses throughout the north west of the UK. The company plans to use power line technology to provide public access networks for residential customers in the region. United Utilities has a combined capability in water and waste water, electricity, gas and telecoms, employing 10,000 people worldwide with revenues of pnds. stlg. 2.4 billion in 1997. This new technology will strengthen its competitiveness as a multi-utility service provider.

Nortel works with customers in more than 150 countries to design, build and integrate their communications products and advanced digital networks. Customers include public and private institutions; Internet service providers; local, long-distance, cellular mobile and PCS communications companies; cable television companies; and utilities.
Nortel had 1997 revenues of $US15.5 billion and has approximately 73,000 employees worldwide.

SOURCE Northern Telecom Limited
/CONTACT: Frank McNally, 703-712-8374 or frank.mcnally@nortel.com, or Michelle Murray, 770-708-4434 or michelle_murray@nortel.com, both of Nortel/ /Company News On-Call: http://www.prnewswire.com or fax, 800-758-5804, ext. 122158/ /Web site: http://www.nortel.com/powerline/ (NTL. NT)

Progress: Nortel/Norweb UK Digital Powerline

Last Oct 8, Nortel and Norweb in the UK made a big announcement about a breakthrough in putting data over the powerline at up to 1 megabit/sec. UFTO Notes on Oct 8 and 22 supplied information that was available at that time. (See the UFTO Database-do a search for “nortel” to get a copy of these two notes.) In mid December, another press release was issued on the test being run at a school in Manchester, England. The system is operational.

Understandably, UFTO’s initial query to Nortel back in October got lost in the chaos that followed their first announcement. Now with a recent follow up, we have new information and a unique opportunity to get involved at the front end of this remarkable development.

1. More details about the system now officially named “Digital Powerline” are available on Nortel’s website at:

http://www.nortel.com/broadband/reference/norweb.html

2. Nortel and Norweb will announce in the coming weeks how they intend to pursue worldwide commercial deployment of this product.

3. Nortel North America, headquartered in Atlanta, has a group that sells networking equipment and services to the electric utility industry. This group has lined up two US utilities for a preliminary study of their distribution system configurations, to be able to begin the process of understanding the best prospects for deployment — i.e. markets, locations, niches, and technical issues, etc.

The system serves as the communications link to the customer’s premises, and provides an “always on” internet connection. A small box next to the meter connects via coax cable to the customer’s computer. The ISP would connect to the utility’s backbone which connects via fiber or other dedicated high-bandwidth transport means. As the website explains, one big issue for N. America is the number of customers per distribution transformer (8-10, vs. 100 or more in the UK), and the possible need for some kind of bypass technology.

More technical details beyond what appears on the website can be made available only under a non-disclosure.

The Nortel group in Atlanta would welcome the opportunity to enter into discussions with UFTO utilities. Contact: Barbara Warren, 770-708-5117, bswarren@nortel.com

Followup re UK internet on Powerline

Here are two comments on the Nortel Norweb press release of Oct. 8. The first is from Wired Magazine’s website, and points out some of the reasons why this technology may not take the world by storm right away. The second from Reuters gives a bit more technical and business detail.

No response as yet to my inquiries to the company.

The Boy Who Cried ‘Net Access!’
by Chris Oakes WIRED

4:45am 10.Oct.97.PDT Some sizable questions surround Wednesday’s announcement by Canada’s Northern Telecom and Britain’s Norweb Communications of a technology Nortel has developed that enables high-speed Net access through existing electric lines – giving utilities an apparent easy-in to becoming communication providers via their own power-line infrastructures.

To convert power grids to data networks, says Nortel vice president of market development Graham Strange, the company’s design “modulates the data signal onto the power line and creates what is essentially a LAN environment.”

Having created a transmission protocol sufficiently robust to make its way through the heavy-duty noise of an electrical line at up to 1 Mbps, the company says, any power line can do the job. Yet there are some not-so-small technical and economic issues that may keep the local power company from rolling out the tech without some careful analysis. Especially those in North America.

The Nortel layout leverages a power grid’s tree-and-branch structure of substation-to-transformer-to-customer. A data signal can comfortably travel over existing lines from a customer’s house to the local transformer, but a problem arises then. Data won’t survive a trip through the extra-heavy noise of electrical current at the transformer, necessitating the construction of an alternate route to shuttle the data signal further up the network. And unless the power company already has separate communications lines running to that transformer node, new lines will have to be installed to finish the data circuit.

“You do have to split it out, because you can’t get it through the transformer,” Strange said. But that cost can be justified, he said, when each transformer is serving 100 to 300 customers. This is usually the case in the UK, but when each transformer only serves a handful of people – commonly 10 to 12 people in North America – the network’s tree-and-branch structure is too small for the job. And for those utilities that might choose to invest in new communications lines to their transformers, the prospect starts to lose its payoff.

Acknowledging that this could represent a significant investment for some, Strange points out that many power companies already have usable communication lines running into their transformers – and in many cases they are fiber-optic lines, which are ideal for carrying the data signal. “But other utilities will have to invest in infrastructure at the sites,” Strange said. “The economics of this becomes a challenge for some utilities – it’s a tougher business case when you try to fit it into that environment.”

A potential solution is to somehow bypass the transformer with the data signal, requiring it to make a jump between low- and high-voltage lines. Strange says there are a series of issues in making that work, and that Nortel will be trying to come up with a solution in concert with UK electric utility Norweb. “There are issues. They will take time.”

Meanwhile, Strange reports that calls by interested British and North American utilities have been pouring in.

Another variable is the system’s supported data speeds. Nortel says symmetric data rates of 500 Kbps to 1 Mbps have been achieved. But Strange says the consistency of these rates will depend on the noisiness of local lines. “With a lot of noise on the lines, the protocols will slow down. It dynamically deals with that.” To boot, as with cable-modem access, available bandwidth at the transmitter will have to be shared, presenting the possibility that during heavy traffic periods, each user’s speed will be affected. Still, under even bad conditions, a minimum speed of 500 Kbps can reasonably be expected, Strange says.

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Norweb, Nortel To Plug Clients Into Internet

By Kirstin Ridley, Reuters

LONDON – Canada’s Northern Telecom (Nortel) and Britain’s Norweb Communications today unveiled new technology allowing reliable, low-cost, high-speed access to the Internet computer network through the domestic electricity supply.

In a move heralding the first competition between electricity companies and telecommunications carriers, the two groups said their patented technology would allow power firms to convert their infrastructures into information access networks.

Having “fixed the fuzz” of electrical interference on power lines, the companies said they could shunt data — and possibly voice — over power lines into the home at up to one megabit per second.

This is up to ten times faster than ISDN, the fastest currently available speed for domestic users.

Although it is slower than rival ADSL technology being developed by British Telecommunications , which upgrades copper wires, Norweb and Nortel’s technology is much cheaper for operators to install.

All consumers need is the equipment developed by Nortel and Norweb — an extra card for personal computers, some software to handle subscription, security and authentication services and a small box which is installed next to the electricity meter.

This will send and receive data and is in turn linked to a personal computer through an ordinary coaxial cable.

Peter Dudley, vice president of Nortel, said the groups had had an “absolutely spectacular” amount of interest from electricity companies in Britain and abroad who are keen to offer the service to consumers.

“The race is on to be first,” he told Reuters.

Prices will be set by electricity companies who offer the service. But consumers currently spend an average of 20 to 30 pounds ($48.6) per month for Internet access — and the new service offers permanent access without telephone costs.

“Assuming they continue to spend at that rate, it is not unreasonable to assume that is the kind of tariffing that may be submitted,” Dudley said.

The Canadian telecoms equipment maker and Norweb, part of England’s multi-utility United Utilities, said their technology was fast enough for most future domestic or small office applications and was cost effective enough to allow operators returns on investments.

“As one of the first practical, low cost answers to the problem of high speed access to the Internet, this technology will unleash the next wave of net growth,” Dudley said.

The two companies have developed a “specialized signaling scheme” which allows them to carry data traffic between local power substations and homes, effectively turning the electricity supply into a communications network.

Each substation is then linked by fiber-optic circuits to a central switch — and from there into the world-wide computer network.

After 18 months of refining and upgrading a prototype and promising “oodles of bandwidth”, the companies said they planned to market the technology in Europe and the Asia Pacific region.

“We are ready to ship in volume,” said Ian Vance, vice president and chief scientist at Nortel Europe.

Banking on high growth and good economic returns, Norweb hopes to attract around 200 customers in a marketing pilot in north western England in the second quarter of 1998 before rolling out the service.

Telecomm over the power line in UK

(I don’t normally just pass along press releases, but this one looked too important and I didn’t want to take the chance that you would miss seeing it.)

Wednesday October 8 4:55 AM EDT
Company Press Release

Nortel (Northern Telecom) and Norweb Communications Achieve Technology Breakthrough That Will Open a New Wave of Internet Growth

LONDON, Oct. 8 /PRNewswire/ – Nortel (Northern Telecom) and Norweb Communications, a business unit of United Utilities plc. of Great Britain, today announced that they have developed jointly a new technology that allows data to be transferred over electrical power lines into the home at speeds of more than one megabit per second-up to 10 times faster than ISDN, currently the fastest generally available speed. The breakthrough has the potential to open a new wave of demand for Internet services in the UK and Europe.

Nortel has developed the technology at its European Research and Development laboratories in Harlow, UK, in co-operation with Norweb Communications. Recent trials on the Norweb Communications network have been completed successfully and the technology is available for deployment.

The technology, which enables electrical companies to convert their power infrastructures into information access networks, will be initially marketed in the UK, Europe and Asia Pacific.

It allows electrical companies to provide a service that solves the three major problems facing international Internet market acceptance-access to consumers’ homes, data transmission rates and capital cost:

– By giving customers access to the Internet through their existing electrical supply system, the technology is available to virtually anyone. It offers permanent on-line connection with the potential for lower charges;

– The new technology enables data to be transmitted at rates of more than one megabit per second by using a patented technology that screens the data from electrical interference on the host power line, a long sought-after goal in telecommunications;

– Investment costs for the electrical companies are low compared to those envisioned for other broadband data access systems. Due to the nature of this technology, it can be rolled out in discrete, targeted phases. Utilities not wishing to operate data services also have the option of charging a right-to-use fee to an operating company for accessing their plant. End users require a computer card comparable in cost to a conventional ISDN terminal adapter, but offering 10 times the peak bandwidth.

The new technology will enable the introduction of Internet-based applications such as electronic commerce, teleworking, web broadcast media, entertainment and Internet telephony on a mass market scale.

The two companies have been working together on this development for the last three years and it is subject to a number of patents filed by Nortel and Norweb Communications. Norweb Communications is widely recognized within the power sector as a leader in research into broadband communications over power lines, having started work in this area in 1990.

Electricity utilities in Europe and the Asia Pacific region have already expressed significant interest.

Peter Dudley, a vice-president of Nortel, comments: “The rate of Internet take up and the volume of data traffic carried over the Internet has been one of the most striking business developments of the current decade, but speed of access remains a bottleneck for most users. As one of the first practical low-cost answers to the problem of high-speed access to the Internet this new technology will unleash the next wave of net growth.”

Mark Ballett, Managing Director of Norweb Communications, comments: “Norweb Communications has championed the use of electrical networks for voice and data services for several years and we are delighted to now be in a position to announce the launch of the first commercial products. This technology will allow us to use existing infrastructure to establish a strongly differentiated service offering in the northwest residential and small business market.”

Nortel will be opening a conformance center in Harlow, UK, for hardware and software suppliers who are interested in certifying their products for use on this new service.

Norweb Communications, part of United Utilities plc, provides an extensive range of advanced voice and data services and has achieved significant success in providing resilient networks for businesses throughout the northwest region of the UK. The company plans to use power line technology to provide public access networks for residential customers in the region.

United Utilities has combined capability in electricity, gas and telecom. This new technology will strengthen its competitiveness as a multi-utility service provider.

Nortel had a 1996 turnover of $US 3 billion in Europe, operating both independently and through its joint ventures with the Lagardere Group in France (Matra Communications and Nortel Matra Cellular), Olivetti SpA in Italy (Sixtel) and Daimler-Benz Aerospace AG in Germany (Nortel Dasa Network Systems). The company employs approximately 16,000 people across Europe in Research and Development, manufacturing and sales.

Nortel works with customers worldwide to design build and integrate digital networks – for information, entertainment, education and business – offering one of the broadest choices of network solutions in the industry.

Nortel had 1996 revenues of $US 12.8 billion and has approximately 68,000 employees worldwide.