Cleantech Market Intelligence
Emerging Broadband Technology Offers New Connectivity for Utilities
In the battle for smart grid communications standards, yet another contender is now on the horizon, promising ultra fast data speeds over existing copper wires. And while telephone companies (telcos) are the primary target market for the G.Fast standard, chipset developer Sckipio believes that the standard will be attractive to utilities for smart grid applications, in addition to broadband connectivity and over-the-top applications like video.
Designed to help telcos cost-effectively compete with cable broadband and very expensive fiber-to-the-home (FTTH) connectivity, G.Fast employs vectoring technology to eliminate interference (cross-talk) between multiple wire pairs in a single copper cable. The International Telecommunication Union (ITU) instituted the standard in 2010, and recent field trials have shown promising results.
Belgacom has trialed the standard with 3,000 customers and reported a nearly four-fold increase in access speeds over copper. This makes the technology a reasonable alternative to FTTH, particularly in urban areas with extensive copper infrastructure already in place. In multi-dwelling units with extensive in-wall phone lines, the use of existing copper lines represents enormous cost-saving, as well as a speed-to-market advantage over running new fiber.
G.fast is designed for use in the last-mile – in practice, over distances of less than 250 meters. This allows fiber to reach as far as the basement of an apartment block, for example, eliminating the need to rewire the whole building and still allowing a notable acceleration in access speeds. G.fast requires a short loop (less than 250 meters) and operates at higher frequencies than digital subscriber line transmissions, which also run over existing copper wires, increasing the risk of cross-talk unless the new vectoring technology is employed.
Sckipio says it has seen interest in Europe, North America, and Asia Pacific, and expects to see telco deployment begin in earnest in 2015.
Tel Aviv, Israel-based Sckipio was founded in 2012, and in December 2013 announced a $10 million venture capital round with Gemini Israel Ventures, Genesis Partners, Amiti Capital, and Aviv Ventures. The company is building ultra high-speed G.fast broadband modem semiconductors.
The G.fast standard is still working its way through ITU approval, and a few technical hurdles remain: Powering the equipment and the unbundling of sub-loops is something that different countries are treating differently.
G.fast represents a great leap forward for telcos struggling with legacy copper networks. As a viable alternative for utilities seeking connectivity for smart grid applications, it is likely still a couple of years out. Given its very high data transfer speeds, however, it may well present a new alternative for utilities needing visibility and control at the grid edge — while also providing telephone companies with an opportunity to ramp up their business in the utility/smart grid vertical.