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« Voice over Wi-Fi, Eh? | Main | Public, Private Partnerships for Municipal Wi-Fi »

October 25, 2004

Once Electrocuted, Twice Shy? Power Utilities Not Interested in Being ISP

Lo, but how the times are changed: instead of leaping headlong into a line of business that isn't part of their existing competence, power utilities are hesitant to become broadband providers: What th'!? It's a new age, that's all I know. This article quotes a number of power utilities that are not very interested in becoming ISPs. NStar Electric, a Mass. utility, lost $200 million in an RCN investment, for instance.

Regulators want competition through this back-door method, however, which is why they approved it. It's easier to open a new modality than to, for instance, require reasonable wholesale prices and enforce the rules to allow competitive DSL providers, no?

It's clear that if BPL will happen in the short-run, ISPs like Earthlink will need to find utility partners who want to cope with infrastructure not users.