Contrary to conventional wisdom, electricity demand isn’t immune to price elasticity, and rate designs can encourage conservation. In particular, inclining block rates coupled with dynamic pricing...
Utilities and BPL: Betting Against the Odds
Why broadband over power line (BPL) can't stand alone as a high-speed Internet offering.
- then applied.
- Pricing for BPL in most current trials is about $30, the same price as DSL in many markets. To attain a $45 ARPU, a BPL provider would require at least some other revenue stream: perhaps VoIP or Internet value-added services (, security, home management, home area network maintenance, e-mail, Web hosting, etc.).
- This analysis holds churn constant at a relatively low value of 1.5 percent per month.
- Of course, this is a simplifying assumption. Actual value for BPL is a function of a variety of factors, many of which we discussed earlier. The portion of the BPL market realized by the utilities in this panel could be more or less than that represented here.
- According to the United Telecom Council. Uses include coordinating power dispatch and transmission, among other functions.
- These applications include real-time pricing, automatic shut on/off, and monitoring of consumer usage to control and balance loads.
- The economics of BPL also will depend on regulatory treatment of cost allocations.
- It also is likely to reduce churn given the known effect of product bundling on customer "stickiness."