Avista hits snag on broadband project in North Idaho

Avista officials say they are deciding whether to proceed with an announced plan to test a new broadband Internet service in North Idaho.

In July, Avista officials said they planned to launch a test of broadband over power line (BPL) in Post Falls by the end of 2005. But discussions with the company that would set up and manage the service have stalled, said Dave Heyamoto, manager of market solutions for Avista.

The company selected by Avista is Chantilly, Va.-based COMTek, Inc.

Heyamoto declined to say what’s delaying the deal with COMTek. COMTek spokesman Scott Stapf said the delay is due to unresolved contract terms.

Broadband over power line uses utility transmission lines to deliver data and voice service to homes or businesses. The service proposed in Post Falls would give some Avista customers broadband connections at a rate not yet determined by the utility.

Avista spokesman Hugh Imhof said COMTek was chosen because it has experience in deploying BPL in a number of East Coast locations.

Heyamoto said the business model for BPL has changed in the past year, raising the option of moving in a different direction with the BPL test. The initial plan was based on the utility gaining a relatively small portion of the total benefit, with the BPL customers getting far more.

Heyamoto said studies now suggest a utility’s total benefit from BPL is far higher than first thought. In particular, utilities now anticipate BPL might be one of the most effective two-way systems for tracking power grid performance across a broad service area, he said.

Heyamoto said that change in business model has him reconsidering what the next steps will be for the BPL test. At the same time, he said the discussions with COMTek are proceeding.