Schneider Electric and THOMSON join the powerline communication marketplace

Schneider Electric (Paris, France) and THOMSON Multimedia announced a partnership to develop Powerline Communication (PLC) technologies.

A high-potential market
With the explosive growth in sales of digital devices — set-top boxes, DVD players, electronic books and MP3 audio players — home communication networks will soon become as commonplace as household electrical wiring. Whether these home networks succeed will depend in large part on their price, performance and ease of use.

The key to developing these networks is to enable consumers to connect without having to install additional wiring. Among the different possibilities using existing home electrical networks, PLC technologies are especially attractive because they are so easy to use. They use the household electrical system to transmit digital data, then they enable products to communicate. This is done by simply installing an interconnect box between the product and the electrical outlet.

The market for communication devices integrating these technologies is estimated at more than $ 1 billion in 2003.

A global partnership
To serve this emerging demand, Schneider Electric and THOMSON multimedia will develop solutions using PLC technology for widely used consumer applications and building control systems. With more than one million accessories already sold worldwide, both companies enjoy industry-leading experience and expertise. In the United States, THOMSON has sold a system that links a digital set-top box to a telephone line using the existing electrical network. In Europe, approval to market these products has been obtained for the United Kingdom and Italy. It is pending in France, Spain and Germany.

The partners have decided to create an equally owned joint venture that will combine their assets and skills in PLC technologies. Their goal is to build a full range of PLC communication products for home networks, building control systems and return path needed for interactive applications. The partners' hope for sales of 200 to 300 million Euros within three years. They will begin inter-site communication trials via electrical networks as soon as the joint venture is operational.

Edited by Jerry R. Borland, P.E.
Managing Editor, EC Online