French chipmaker Spidcom Technologies is in talks with Chinese telecom operators to bring broadband Internet access over the power lines to Chinese households.

Company president Radomir Jovanovic is expecting deregulation of power line communications (PLC) in China due to increasing use of video on home networks.

PLC offers consumers an alternative to traditional ADSL (asymmetric digital subscriber line) technology for broadband Internet access. Users can plug a PLC modem into any electrical outlet to access the Web as PLC is overlaid on the electrical distribution system. That makes it convenient for home and SOHO (small office home office) users.

Chinese fixed-line telephone operators China Telecom and China Netcom have shown increasing interest in PLC technology, said Jovanovic, adding that it could boost deregulation of the technology.

"The IPTV (Internet protocol television) could offer a big opportunity (for the uptake of PLC)," he said.

China Telecom and China Netcom are aggressively promoting IPTV services, or high-definition TV over broadband, which they expect to become a significant revenue stream at a time when fixed-line telephone business is slowing down.

Unlike ADSL technology, the most used broadband Internet access by Chinese households, PLC can provide Internet access in every room as long as there is an electrical outlet.

"PLC can be very convenient for home networking," said Jovanovic, adding that PLC can enable home users to view IPTV in every room compared to the ADSL technology. Spidcom provides chips for PLC modem makers including some Chinese manufacturers.

An increasing number of Chinese consumers, which have more than one computer at home or need mobility, have established Wi-Fi networks at home. But IPTV needs a higher speed that Wi-Fi cannot deliver. PLC can provide enough bandwidth to send high quality video.

Jovanovic said China Telecom and China Netcom are seeking to adopt PLC as a complementary in-home network. Users can use ADSL for access in the living room and a PLC modem in other rooms.

Increasing interest from telecom operators might push the Ministry of Information Industry to lift a ban on the technology. Beijing Fibrlink, a company controlled by State Power, China's largest electricity firm, has been offering a PLC access trial in some areas of Beijing.