If they can turn existing power lines into a medium of transfering data, then I would not be too surprised if they could get speeds that approach what they are advertising. I am curious, however as to how they plan on routing traffic on large power networks. From what I understand, the existing power grid is very expansive and interconnected. The number of packets on such a network would be very high, but how many packets per second can a NIC card handle? Active routers would have to be intstalled to subdivide expansive power networks in order to decrease the traffic on subnetworks so that NIC cards can quickly filter out packets with the correct IP. Since the power grid is interconnected, however, I doubt that this will be an easy task. Also, new routers would have to be designed in addition to the power modems that they are developing now.
Even with many active routers to divide power networks into smaller subnetworks, encryption of internet data transmission will become much more important for maintaining security. Depending on how much they subdivide the power network (and of course more routers equals higher expenses), a user will find themselves on a subnetwork with their neighborhood, city, or possibly even state. All packets of all the users in that subnetwork would go to all computers, so they will be open for sniffing. Sniffing is currently most applicable only in large company or educational facility networks. On these networks, if active routers are not in place, a system of trust is used to maintain security. While people may trust their coworkers, it would be harder to trust all of the people their neighborhood, city, or state. Encryption would need to be used to maintain security in this type of network.
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Even with many active routers to divide power networks into smaller subnetworks, encryption of internet data transmission will become much more important for maintaining security. Depending on how much they subdivide the power network (and of course more routers equals higher expenses), a user will find themselves on a subnetwork with their neighborhood, city, or possibly even state. All packets of all the users in that subnetwork would go to all computers, so they will be open for sniffing. Sniffing is currently most applicable only in large company or educational facility networks. On these networks, if active routers are not in place, a system of trust is used to maintain security. While people may trust their coworkers, it would be harder to trust all of the people their neighborhood, city, or state. Encryption would need to be used to maintain security in this type of network.