Monday, October 17, 2011

Problems cause delay of Meralco broadband over power lines project

Business Mirror
MONDAY, 17 OCTOBER 2011 19:44 LENIE LECTURA / REPORTER


INTERFERENCE problems are causing the delay in the commercial launch of the broadband over power lines project of the Manila Electric Co. (Meralco) and Philippine Long Distance Telephone Co. (PLDT).


Meralco vice president for customer retail services Alfredo Panlilio told reporters that until the problem is addressed the launch of the new technology will be put on hold. “We want to make sure that, we are going to offer a reliable service and until we are able prove that, then further tests will have to be conducted before the launch.”


Both companies have been conducting tests since 2008. “We are not happy with the performance of the tests because there were technical issues, including problems in interference. So we are going to [conduct] some more tests,” added Panlilio.


Previous tests conducted in multi-dweller units in Malabon yielded positive results but Meralco and PLDT still want to conduct further checks, preferably in a residential setting with up to at least 1,000 houses.


Panlilio said they want to conduct tests “where there is more volume.” “Further tests can be conducted in the same place but with more users.


Last month, PLDT president Napoleon Nazareno said the PLDT group has decided to extend the ongoing test run of the broadband over power lines project, postponing yet again the commercial launch of the new technology. “The tests will still happen in 2012,” said Nazareno. “We won’t be able to launch it yet this year.”


The technology—which is seen to help provide wired broadband services in areas not currently reached by PLDT facilities or in areas where such facilities are already exhausted—will continue to be offered on a trial mode until all the tests are conducted, said Nazareno. 


Nazareno said they are testing three technologies for this project. “We want to perfect the technology. We need to be conclusive. So we are still widening the test on bigger sampling areas,” explained the PLDT president.


Broadband Internet service is being delivered over Meralco’s power lines since August 2008 in Malabon. Officials had anticipated that the service trial was supposed to last only for three months before it is offered on a wide-scale basis.  


A team, which represents both PLDT and Meralco people, was formed to collaborate and implement the synergies between the country’s largest phone firm and the power distributor. Nazareno admitted that not too many countries have already launched the technology on a full-scale basis. 


Meralco earlier said the results of the said pilot test will guide the company in determining scope and coverage of the project, which will drive the investment requirements. This project is expected to make the Internet more accessible in the country, where only 20 million out of the population of 90 million can go online. 


Other synergies identified include prepaid electricity and cellular services, fiber optic network, billing system, subscriber base, and other vital facilities that both companies can jointly own and operate.


Once prepaid electricity service becomes available, the electronic loading facilities of the PLDT group can be made available to Meralco and its prepaid customers to make the reloading of prepaid values more convenient and ubiquitous.


Meralco is set to pilot the prepaid electricity process early next year. It is currently evaluating vendor proposals for systems to implement the service in line with the guidelines issued by the Energy Regulatory Commission.


Prepaid electricity has been in operation in countries like South Africa and Indonesia, and more recently in India, Australia and New Zealand. In South Africa and Indonesia, prepaid electricity is availed of by consumers using tokens and a meter with numbered keys where a code is punched in.

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