The challenges of integrating BPL into existing telecom business models: market visions from Brazilian research

Abstract

This work presents a strategic assessment of broadband power line (BPL) technology, showing evidences that BPL is a very real competitive access technology to telecom services. Firstly, the business environment of technological convergence is investigated to search for opportunities to deploy BPL. Additionally, BPL competitiveness is assessed against the main existing access technologies. As a basis for telecom business environment diagnostic, we present the results of a research in Brazil's telecom market to understand how service providers are reacting to technological convergence [Cunha, A., 2001],[Quientella, HLMM, 1997] . The results were compared with a similar US research developed in 1991 by Joseph Pine, MIT. The results indicated that many technological innovations do not reach the market due the lack of appropriated businesses models. Furthermore, a technologic competitiveness assessment is performed using traditional techniques such as Porter's 5 forces [Porter, M, 1980]. BPL/PLC is assessed against the existing access technologies. Some strategic drivers were outlined in the entrance of BPL/PLC in the telecom sector. It provides important insights of how new technological assets, like BPL, can be competitive and integrated into telecom services.