UPLC Powerline- September 16, 2008

Last week at Broadband Power Line 2008, UPLC's Annual Conference, the focus was on Smart Grid. Current Technologies and Corinex provided similar views about designing BPL networks to support Smart Grid applications - emphasizing that BPL provides the robust bandwidth needed to realize a true Smart Grid utility vision. Similarly, Telkonet described its products to support substation monitoring and automation. Meanwhile, IBEC reported the value of BPL for providing broadband services in rural areas, many of which have little or no broadband access alternatives. On the regulatory front, UPLC reported that Smart Grid legislation creates many opportunities both in terms of funding and state/federal policy support for BPL. UPLC also reassured the audience that the FCC's BPL technical rules remain in effect and that the issues that were remanded by the U.S. Court of Appeals for the District of Columbia Circuit were largely procedural. Finally on the technical front, Intellon and DS2 described the issues related to standards for interoperability and coexistence between in-home and access BPL systems. HomePlug, Panasonic and DS2 also reported on new products and standards efforts aimed at the utility industry for Smart Grid and other applications. In conclusion, Ray Blair, Technology Co-Chair of the UPLC urged utilities to get more involved in the organization in various activities in order to ensure that BPL will continue to support Smart Grid and other applications.

INDUSTRY: GRIDLINE ANNOUNCES $200 MILLION INVESTMENT

Last week, Gridline Communications Holdings Inc., a U.S. based corporation focused on Broadband Communications network deployment using proven Broadband over Power Line (BPL) and other appropriate communications technologies, announced that it has completed its Series G1 Preferred Securities Funding in the amount of $200 million with Voobon Ventures, Inc., an Atlanta, Georgia based Private Equity fund in association with Certified Capital Group LLC. of Orlando, Florida. The funds are to be disbursed over a period of 12 to 18 months and used for intellectual properties development, broadband network deployments, targeted acquisitions and international expansion. While the specific terms of the investment were not disclosed, the initial draw of $20,000,000 will be used for pending projects, acquisitions and general operating funds.

Mark Shariar, President and Managing Director of Voobon Ventures, stated that "the Gridline project has been one of the most exciting investments we have put together for our fund in quite some time. Even during uncertain economic times, and international tensions, the Gridline Executive team's vision, steadfastness, market focus, ability to secure projects and their grasp of the business and varied technologies available have assured us, and our investors, that we are backing a winner. Through the efforts of Terry [Dillon, President of Telkonet] and his team, Voobon was able to keep our investors excited and enthusiastic about the Gridline project amid the uncertainties of the international communications industry."

Corinex Communications, a provider of BPL connectivity solutions, announced that it will partner with D&H Distributing, a major distributor of consumer electronics, computer products and digital convergence technology. Under the agreement, D&H Distributing will sell Corinex's Broadband over Powerline products, including GameNet, HD Connectivity Kit, and more.

"We are very excited to be working with D&H Distributing," said Shahab A. Moshajari, Corinex's director of sales and retail. "D&H has a large footprint in both the United States and Canada, and its background in computer and consumer electronics products makes the company a perfect fit for Corinex Communications."

  Brazilian power company Copel reportedly plans to expand its BPL pilot program to cover an entire city in 2009, building on the 300 homes that are expected to have signed up by the end of 2008. The citywide expansion, which is expected to attract 3,000-10,000 clients, is to take place in Copel's home state of Parana. The company is not yet ready to name the city, but it did confirm that it will be a small city in the north of the state, and not the capital Curitiba. The expansion will be stage two of Copel's plan to become a fully fledged telecoms operator. However, it is still effectively a test phase. In the third stage, the telecoms team will propose mass market expansion of the service, and Copel's board will then decide whether to make the necessary investments.

Copel provides electricity to 3.5 million homes in roughly 200 municipalities, as well as corporate telecommunications services - including internet access, security, voice and VPNs - to more than 500 companies in Paraná state.

This week, MSTI Holdings, Inc. introduced a BPL-based end-to-end intercom solution that combines IP Telephony, electromechanical and IP networking elements for a cost-effective, reliable and non-disruptive approach to upgrade failing intercom systems in existing high-rise residential buildings as well as for new high-rise residential development projects.

"With the aging of many apartment buildings in major cities across the country, many building wide network and telecommunications systems have become obsolete or unfit to support intercom systems that are critical for building operation and security," said Frank T. Matarazzo, MST founder and CEO. "Our Powerline Communication-based intercom solution is a cost-effective, reliable and non-disruptive solution for this problem. In addition, it's future proof and provides a robust platform for building owners and managers to also deliver local and long-distance telephone service, high-speed Internet access or wireless Internet all through a single dynamic and highly-scalable PLC-based system."

Leveraging Telkonet Inc.'s proprietary, patented powerline products, MST can provide a new and dynamic wired networking solution that improves building wide security and communications services. Installation costs are approximately roughly half of a cabled solution and 25 percent less than a wireless solution, and network coverage is consistent and more reliable throughout the entire building. Users of the system utilize a standard IP Phone, in their unit, for intercom and/or video functionality including door release. The system also supports monitoring capabilities. The monitoring service is available on a subscription basis and has a comprehensive web-based portal with customizable reporting options.