Telkonet Comments on FCC's Milestone Decision to Affirm Widespread
Deployment of Broadband over Powerlines Decision Expected to Accelerate
Adoption of Broadband over Powerline Technology
Germantown, MD � November 1, 2004 - Telkonet, Inc. (Amex: TKO), the
leader in providing in-building broadband access over existing electrical
wiring, commented today on the recent groundbreaking decision by the Federal
Communications Commission to affirm the widespread deployment of Broadband
over Powerline (BPL) services and technology.
�The FCC�s milestone decision validates Telkonet�s business model and
underscores the potentially enormous value of our patented technology for
providing in-building broadband access over existing electrical wiring.
We expect the decision to accelerate the adoption of BPL as the broadband
solution of choice in a wide variety of applications,� said Ron Pickett,
president and CEO of Telkonet. �By confirming existing technical rules
and implementing important new rules for BPL deployment, the FCC's decision
strengthens Telkonet's competitive position and enhances the value proposition
we offer to customers in our target hospitality, multiple dwelling, and
government markets.�
Bruce Romano
(202) 418-2124
FCC Adopts Rules for Broadband over Power Lines
to Increase Competition and Promote Broadband
Service to All Americans
October 14, 2004 - Washington, DC - As part of its goal to promote access
to broadband services for all Americans and to encourage new facilities-based
broadband platforms, the Federal Communications Commission today adopted
changes to Part 15 of its rules to encourage the development of Access
Broadband over Power Line (Access BPL) systems while safeguarding existing
licensed services against harmful interference. Access BPL is a new
technology that provides access to high speed broadband services using
the largely untapped communications capabilities of the nation�s power
grid. By facilitating access to BPL, the Commission takes an important
step toward increasing the availability of broadband to wider areas of
the country because power lines reach virtually every home and community.
In areas where consumers already have broadband access, BPL can enhance
competition by providing another broadband alternative. Access BPL
will also facilitate the ability of electric utilities to dynamically manage
the power grid itself, increasing network reliability by remote diagnosis
of electrical system failures.
In the Report and Order (Order) adopting these changes, the Commission
recognized the significant concerns of some licensed radio service users
regarding the potential of Access BPL systems to cause interference to
their operations. The Commission stated that its intention in adopting
the Part 15 rule changes was to ensure that Access BPL operations do not
become a source of harmful interference to licensed radio services.
Based on extensive research and analyses, as well as experience, it concluded
that the interference concerns of licensed radio users can be adequately
addressed and that Access BPL systems will be able to operate successfully
on an unlicensed, non-interference basis under the Part 15 model.
The rule changes in the Order establish specific technical and administrative
requirements for Access BPL equipment and operators to ensure that interference
does not occur and, should it occur, to provide for a timely resolution
of that harmful interference without disruption of service to Access BPL
subscribers. The Order also sets forth procedures to measure the
radio frequency (RF) energy emitted by Access BPL equipment.
Specifically, the Order by the Commission:
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Sets forth rules imposing new technical requirements on BPL devices, such
as the capability to avoid using any specific frequency and to remotely
adjust or shut down any unit;
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Establishes �excluded frequency bands� within which BPL must avoid operating
entirely to protect aeronautical and aircraft receivers communications;
and establishes �exclusion zones� in locations close to sensitive operations,
such as coast guard or radio astronomy stations, within which BPL must
avoid operating on certain frequencies;
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Establishes consultation requirements with public safety agencies, federal
government sensitive stations, and aeronautical stations.
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Establishes a publicly available Access BPL notification database to facilitate
an organized approach to identification and resolution of harmful interference.
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Changes the equipment authorization for Access BPL systems from verification
to certification; and
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Improves measurement procedures for all equipment that use RF energy to
communicate over power lines.
Action by the Commission, October 14, 2004 by Report and Order (FCC
04-245). Chairman Powell, Commissioners Abernathy, Martin, and Adelstein
with Commissioner Copps dissenting in part and approving in part.
Joint statement issued by Chairman Powell and Commissioner Abernathy, separate
statements issued by Commissioners Copps, Martin, and Adelstein.
ET Docket No. 04-37
Office of Engineering Technology Contact: Anh T. Wride, 202-418-0577. |
Telkonet's PlugPlus� system is an innovative solution that uses patented
powerline communications technology to deliver broadband Internet and data
access over a building�s existing electrical wiring. The system uses
a building's existing infrastructure, which means that no new construction
is required and installation is inexpensive.
�Telkonet�s technology can be installed within days in virtually any
commercial, industrial, government or military building that requires high
speed Internet access. In addition, our PlugPlus system is designed to
accept the Internet signal from a DSL line, T1 line, cable or satellite
connection, and is encrypted to provide the highest-level of security for
its users,� Ron Pickett explained.
About Telkonet
Telkonet's
products provide connectivity over existing electrical wiring and do not
require the costly installation of additional wiring or major disruption
of business activity. In many situations, the Telkonet system can be implemented
more quickly and less expensively than adding dedicated wiring or installing
a wireless system. The Telkonet PlugPlus� family of networking and internetworking
products offers a viable and cost-effective alternative to the challenges
of hardwiring and wireless local area networks (LANs). Telkonet PlugPlus
products are designed for use in commercial and residential applications,
including multi-dwelling units and the hospitality and government markets.
For more information, please visit www.telkonet.com.
Statements included in this release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements involve a number of risks and uncertainties such as competitive
factors, technological development, market demand and the Company's ability
to obtain new contracts and accurately estimate net revenues due to variability
in size, scope and duration of projects, and internal issues in the sponsoring
client. Further information on potential factors that could affect the
Company's financial results, can be found in the Company's Registration
Statement and in its Reports on Forms 8-K filed with the Securities and
Exchange Commission (SEC).
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