The electrical utility in Syracuse, New York will provide its 6,845 residents in the Solvay district with high-speed web access through their electrical outlets.
Solvay Electric Department superintendent John Montone says the Syracuse suburb would be the first place in the state to offer broadband over power lines to homes and businesses.
The equipment was tested for about five months in the Lakeland area, which gets its power from the village. Users would pay a fee, as for cable high-speed internet, and rent or buy a modem that plugs into the electrical outlet.
The high-speed internet access would be offered at a cost of about $25 a month, said New Visions president Carmen Branca. He called broadband over power lines the next generation in high-speed internet access, saying it is generally 10 to 30 times faster than dial-up service.
Time Warner currently charges $44 monthly for high-speed internet through cable TV lines. Mike Cullim, a general manager at Time Warner's East Syracuse office, said the competition in Solvay would be good for the marketplace, and Time Warner is always evaluating its rates.
A national survey of 72 US utilities found that 38% of them had some interest in this emerging technology, but only 3% were offering it.