Sydkraft deal for power grid internet access

Swedish power company Sydkraft has signed an agreement with Nor.Web and Tele2 to supply internet access services via its electricity grid. The technology will be tested in southern Sweden before Syd-kraft decides to expand the service.

Using the electricity grid for internet access allows for significantly higher-speed connections than can be achieved through a telephone line. Nor.Web, a subsidiary of UK`s United Utilities, will supply the technology needed to use the national grid for internet services. Tele2, a subsidiary of Swedish telecom company NetCom, will provide the internet service.

Sydkraft estimates that it could supply at least one million customers within five years, and will target households as well as small businesses and home offices.

A recent report from consultants Datamonitor reveals that the internet will be a key tool for utilities in retaining customers as competitive barriers fall in Europe.