BPL Global Ltd. is led by CEO Keith Schaefer and focuses on two areas: developing Smart Grid applications for utilities worldwide and using electrical infrastructure to offer broadband solutions to utility customers. The company has partnerships in 14 countries and sees significant synergies between its Smart Grid and broadband operations by using the same network. While Smart Grid addresses critical utility needs, broadband is a new opportunity, and BPL Global believes international regions with limited internet access will drive adoption of its technology.

1. BPL Global Ltd.
KEITH SCHAEFER, Co-founder, Chief Executive Officer and President of BPL Global,
Ltd., plans, directs and manages all aspects of the company’s strategy, business
development, joint venture partnerships and financing. The company is a leading
international provider of Business Intelligence Systems to electric utilities and Broadband
Services via power lines to consumers.
Over the past 24 years, Mr. Schaefer has held senior management positions with
companies ranging from hyper-growth start-ups to Fortune 100s and a Global 500 company.
He has co-founded or led more than ten start-ups and two buy-outs, and was instrumental
in completing two Initial Public Offerings and nine trade sales.
Prior to BPL Global, Schaefer was Senior Partner at Constellation Partners and
previous to that Executive Partner and member of the Executive Committee at US Web/CKS.
He served as Executive Vice President at Viacom and President of Paramount Communications Technology Group, where
he established and successfully led the Venture Capital Group and set up early initiatives and strategic alliances with
Microsoft and AOL. Previously, Schaefer held presidential and CEO positions at Computer Curriculum Corporation,
Worlds of Wonder, and NEC Technologies. He began his career in sales and marketing at Procter & Gamble, followed by
Clorox, and then achieved the position of Executive Vice President at Atari Corporation.
Mr. Schaefer earned a Bachelor of Science degree from The University of Pittsburgh and attended UCLA’s Graduate
School of Business. He is the immediate past President of the Alumni Association and a current Trustee of the University
of Pittsburgh, and is actively involved with the University’s $2 billion capital campaign. Schaefer co-founded and serves
as a member of the Steering Committee of the Socrates Society at The Aspen Institute. Schaefer also co-authored the
best-selling Internet marketing book Net Results, which is used as a reference text at leading business schools.
TWST: May we start with an overview of your company? lion. The good thing about BPL Global’s business is the high degree
Mr. Schaefer: BPL Global is a company that focuses in of synergy in the infrastructure for Smart Grid Applications and
two important areas: developing Smart Grid applications for utilities Broadband Solutions.
around the world, and, secondly, using the same electrical grid, the TWST: Any conflicts when Utilities and ISPs share the
same communications infrastructure, and the same capital expendi- same infrastructure?
tures, to offer broadband solutions for a utility’s customers. Mr. Schaefer: There is such great spectrum of companies
TWST: So there is substantial synergy between the that already share utility poles. There are not just utility and tele-
two operations? phone companies using that same infrastructure, but there are also
Mr. Schaefer: Absolutely. If you look at the Smart Grid cable and fiber companies. In many cases, at least in North Amer-
opportunity, most independent research sizes the market opportunity ica, maybe one-third of the poles are owned by the telephone com-
at about $45-$55 billion. If you look at the Broadband over Power panies like Verizon, and the other two-thirds are utility companies
Line market opportunity, which competes with cable and telecom- like ConEdison in New York and agreements are in place to share
munications solutions, the market opportunity is about $5-$10 bil- these poles.
C O M P A N Y I N T E R V I E W

2. C O M PA N Y I N T E R V I E W ——————— B P L G L O B A L LT D .
TWST: So wire may be a part of the Smart Grid net- range of conditions found on electrical networks around the world.
work and simultaneously be a carrier of a broadband signal? BPL Global’s design expertise is a critical success factor in deploy-
Mr. Schaefer: That is correct. In many cases, a utility com- ing a reliable broadband network.
pany will focus solely on deploying Smart Grid applications to help TWST: What might be the savings involved?
save energy, improve reliability, reduce operation costs or delay in- Mr. Schaefer: The most important thing to remember is
vestment in new generation capacity. An Internet Service Provider that if you leave the shores of North America, most countries with the
can leverage the same communications infrastructure on the same exception of Western Europe do not have a large choice for Internet
wire to provide broadband services to consumers. access. Often you will find no broadband providers. So in many
TWST: What is the current acceptance level of this cases, we are the only opportunity or the first opportunity to provide
technology? broadband to consumers. By using existing power lines, BPL tech-
Mr. Schaefer: The need for a Smart Grid is universally ac- nology has an inherent cost advantage versus other broadband op-
cepted by utility companies around the world. What I mean by that tions such as fiber, cable or DSL.
is that Smart Grid is an important part of the answer to address the TWST: How do you characterize the current state of the
emerging short fall of supply in the face of growing demand for business?
electricity. The demand for energy on a global basis will grow at Mr. Schaefer: We are very bullish on the industry, on our
more than 17% over the next five years. If you look at the new ca- partnership strategy, and on our business model. The company is just
pacity to supply the growth in demand for electricity, less than 7% over two years old and achieving great results. We are working in 14
is planned. So that delta of 10% can not be made up by increasing different countries. We have partners throughout the world. The com-
generation, whether it’s nuclear power plants, hydroelectric, or al- pany has completed strategic acquisitions to establish a local pres-
terative energy like wind. It cannot happen because it takes too long ence in Europe and South America, and to accelerate development of
to fund, to go through the regulatory process, get approval, and then our Smart Grid technology solutions. We were fortunate to have a
to build these plants. So the only way — and I emphasize only and very successful Series C round of fundraising positioning the com-
even underscore it — that the global economy can continue to grow, pany for accelerated growth and regional expansion.
because of such demand for energy, is if a global effort is made to TWST: Are any of your solutions currently deployed on
build intelligence into the electrical network to provide energy more a commercial basis?
efficiently. Therefore Smart Grid technology plays an increasingly Mr. Schaefer: We are commercially deployed in Pitts-
and critically more important role. There is not a utility company in burgh, Pennsylvania in a joint venture with Duquesne Light Hold-
the world, whether it’s in America, Europe, Latin America, India, ings, the publicly traded utility company. We have worked in
China, or the Middle East, that isn’t looking at trying to be better, combination with our partners in pilots in Caracas, Venezuela. And
smarter, and more efficient in the use of energy to keep up with we have a number of deployments in France and other European
global demand. countries. We have a deep pipeline of projects in North America, Eu-
There is a totally different situation for Broadband over rope, the Middle East, South America, and Asia underway for 2007.
Power Line technology. First generation technology failed to de- TWST: Do these deployments encompass both the
liver on the promise. Second generation is much better and much Smart Grid and broadband?
more reliable. It’s beginning to become more attractive; but, it’s Mr. Schaefer: Our initial projects were for Broadband over
early. There isn’t a single deployment in the world with more than Power Line solutions. Our initial Smart Grid deployments are being
50,000 households served. So the industry is in the piloting and implemented as we speak. Our company has recently released our
testing stage. BPL Global has been part of some early successes Power SG™ Application Suite, software which we combine with a
with second generation BPL technology deployed by innovative communications network across the utility’s footprint and smart de-
utility companies. Unlike Smart Grid, which addresses critical vices to provide an intelligent system that collects, analyzes and ad-
needs of a utility’s core business, Broadband over Power Lines is a justs the electrical network to improve a utility’s reliability and
new business for electric utilities, and a new revenue opportunity. energy efficiency. Most utilities have an interest in both Smart Grid
We expect global regions with limited internet access to drive and BPL technologies. Some prefer to lead with a Smart Grid and
adoption of BPL technology. others with BPL.
TWST: Does voltage and distance factor into broad- TWST: How do you compare the potential between the
band transmission? two businesses?
Mr. Schaefer: No, there are no issues with voltage and Mr. Schaefer: As I said earlier, the market size for Smart
transmission distances. Like any broadband network, a high speed Grid is 5 to 10 times greater than broadband today and it will con-
Broadband over Power Line communications network must be de- tinue to grow at that differential. Smart Grid is a global solution to a
signed correctly. Network design is more complex due to the wide global problem.

3. C O M PA N Y I N T E R V I E W ——————— B P L G L O B A L LT D .
TWST: So is it fair to say that the international markets electricity affordable. This is one of those rare opportunities in busi-
will be a major focus of your company? ness where everything is coming together like a perfect storm.
Mr. Schaefer: Absolutely. We have always believed from TWST: Do you have the management team in place to
day one when we conceived of the company that it was a global mar- help you reach all of your goals?
ket opportunity. Most importantly, BPL Global was founded with Mr. Schaefer: Yes, we do. We recently added to our man-
people of different nationalities, who speak multiple foreign lan- agement team a world class CFO in Steve Barto, who came from Er-
guages, and have extensive abilities and experience working on a icsson. He brings extensive M&A and international finance
global scale. We think globally, but we act locally. We don’t believe experience to our team. Through our acquisitions we have added sea-
that you can satisfy the customer if you try to operate out of one soned business executives to drive growth with Pascal Julienne in
country, even the United States. That is why we have people and of- Europe and Antonio Pedrosa in South America. Our goal is to de-
fices located around the world. We have used our Series C capital to velop and deploy technology that will have a substantial role in shap-
acquire companies in key regions to support our efforts. We need to ing an industry on a global scale. We have a team in place capable of
be close to our customers, immersed in their culture, their language, achieving this objective.
and the knowledge of their strategic needs. TWST: How does the inventory look for possible ac-
TWST: Could you comment on future technological in- quisitions?
novations and your strategy for success? Mr. Schaefer: Of course, that’s very confidential and we
Mr. Schaefer: It is important to understand the reality of only share that with our Board members. However, we are looking to
electrical infrastructure around the world. Most utilities have no real- increase the depth and reach of our Smart Grid software development
time visibility into their electrical distribution network. A utility knows and solutions capability for the company. We think that that will add
where the power is out after they get a phone call from a customer. In great shareholder value. In addition to technology related acquisi-
addition, technology to automatically manage demand and load is not tions we are looking to enhance our global reach. And, of course, as
widely deployed. Where it is deployed, it requires manual intervention I said earlier, you cannot do this from headquarters in Pittsburgh; you
or is a one way electronic communication without specific feedback on have to have local people. So, we are looking to expand both in the
the demand or load reduction and impact on the customer. Middle East and into Asia with acquisitions.
Our strategy for success is to provide solutions to utilities TWST: Do you have the balance sheet in place to ac-
with real time sensing and intelligence to automatically control the complish all of these goals, including acquisitions?
electrical distribution network to improve reliability, operating pro- Mr. Schaefer: Yes, we do. That was the whole point of our
ductivity, and energy efficiency. Intelligent control will be provided recently announced Series C financing. We also have excellent rela-
by our software and we will partner with companies for the smart de- tionships with international bankers for debt financing. Our business
vices and communications networks required to provide an inte- model, to work through joint ventures, also leverages our capital in-
grated solution to utilities. vestments with the capital of our partners. We never have to put up
TWST: Are there any trends that worry you at this 100% of the capital; we invest with our joint venture partners.
point? What challenges do you face? TWST: Could you comment on your key partnerships?
Mr. Schaefer: The underlying market trend is in our favor. Mr. Schaefer: We worked hard in the first two years of our
There is a strong trend worldwide from low speed internet via dial- business to find the right hardware vendors and went out and forged
up to high speed internet via broadband. BPL technology will com- those relationships. We have strong relationships with companies
pete in this fiercely competitive yet high growth market with fiber, like Ilevo, Amperion, Telkonet, and Corinex to mention a few. We
cable, DSL and wireless technologies. also worked with large international companies in the sensor and
On Smart Grid, the market fundamentals are aligning to electrical equipment businesses. You will be hearing from us shortly,
mandate transformation in the technology necessary to distribute elec- about some of those relationships just now in final negotiations.
tricity. As I mentioned earlier, there is a growing gap between supply And then, of course, the greatest partner of all and the one
and demand. Smart Grid is an important part of the solution to close that’s most necessary is the utility company itself, and for BPL the ISP
this gap by reducing demand with minimal consumer impact. A very that provides the content — the voice and data services. In every case,
important benefit of reduced demand is a corresponding reduction in we are building a consortium of partners that are unique to that partic-
greenhouse gas emissions, as one step towards addressing global ular geographic area. But it always must include the utility company.
warming. The digital economy is in full force around the world and TWST: Could you comment on your own expertise, as
requires a step change in power quality and reliability which is a key well as that of a few key members of your management team?
benefit of Smart Grid technology. With the cost of energy feed stocks Mr. Schaefer: My expertise is really in building a team,
increasing, Smart Grid also provides utilities with the opportunity to leading the team, and creating an environment in which people can
reduce the capital and operating costs to deliver electricity, keeping thrive, excel, and achieve. My strong suit is sales and marketing. I

4. C O M PA N Y I N T E R V I E W ——————— B P L G L O B A L LT D .
came out of that background after I graduated from the UCLA A third area where we are different is that we believe in the
School of Business. I had a career at Proctor & Gamble, then Atari, joint venture model. We do not believe that it is important or even
and then was President of NEC North America. I worked for many good to own a controlling interest in assets deployed on a utility’s
years in the content area, both at Paramount and then at Viacom. grid and core to their operation. So we create a consortium of tech-
No question, one of our key hires was Jeff Tolnar, our Chief nology partners, vendors, and financing vehicles to share the risk.
Technical Officer, with 14 years experience at Sprint, several years as When you have shared risk, everybody has a stake in success, and
Chief Technical Officer at AEP Communications, part of the large you get people to move in the same direction.
utility company in Columbus, Ohio. He was a Co-Founder of Ampe- A fourth differentiator is that we are really focused in the
rion, one of the BPL technologies that combines wireless communi- Smart Grid area. We are developing an integrated Smart Grid solu-
cation for the last mile, and one of our hardware vendors. Steve Barto tion across multiple applications combining a state-of-the-art soft-
is a world-class CFO with strong M&A and international finance ex- ware platform with a communications network and intelligent
perience. My Co-Founder, Andres Wydler, is a terrific guy. He is devices deployed on the electrical network. This integrated solution
Swiss born, strong in the professional services area, strong in the will support faster operational decision making and automate dis-
strategic area, strong in business development, and has international tribution systems that allow a utility to deliver and manage elec-
executive experience. We have world-class software engineers who tricity more efficiently and more reliably. Our solution moves
are building these Smart Grid applications. I would also just round out beyond just providing data to people, which has relatively low
by saying Pascal Julienne, our Executive Director of BPL Global Eu- value to a utility. Our systems generates significantly more data;
rope, a company we just acquired, probably knows this industry as but, we take the important next step through software algorithms to
well or better than anybody in Europe. He has the connections and the turn that data into actionable intelligence for utility operations and
content knowledge to really make believers of the large utility com- ultimately automated real-time control of the electrical distribution
panies and government ministries throughout Europe and the French network. This will allow utilities to make step change improve-
speaking nations in Africa, the Middle East, and the Caribbean. ments to manage energy more efficiently, improve grid reliability,
TWST: What is the long-term vision for BPL Global? reduce operating costs, and effectively increase generation capacity
Mr. Schaefer: We want to become the leader in providing with existing assets.
Smart Grid applications and Broadband over Power Line solutions for Finally, we have handpicked people that really can operate
our partners on a global basis. What that means for shareholders, on a global scale at the highest level, able to work the boardrooms of
whether we are the largest or the second largest company, is a great utility companies around the world.
return on their investment over the long haul. It’s definitely a long dis- TWST: Thank you.
tance race and not a sprint. But it’s fun. It’s changing the world. It’s a
critically important role for us to play in helping nations develop their
economies and helping nations and utility companies become more
efficient in the use of energy. We feel really good about helping the
global economy, making it a little safer and a little greener. KEITH SCHAEFER
TWST: How would you differentiate your company CEO
from your peers?
BPL Global Ltd.
Mr. Schaefer: There are several important distinctions.
Number one, I believe that we are the only company that started out 444 Liberty Avenue
and continues to focus globally rather than just domestically. Suite 750
Secondly, I think our business model is unique. We believe
in an agnostic approach to the technology. That allows us to work Pittsburgh, PA 15222
with all vendors that provide hardware solutions in each and every (412) 263-5015
one of our deployments. I predict every utility will require a unique
(412) 338-0241 – FAX
solution for a unique situation. You have to take into consideration
the existing electrical infrastructure, the regulatory and political re- www.bplglobal.net
quirements, and the economic drivers. We are free to really architect
the perfect solution for each and every one of our customers.
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