SUMMARYThis paper provides an overview of power line communication (PLC) applications, challenges and possible evolution. Emphasis is put on two relevant aspects: a) channel characterization and modeling, b) filter bank modulation for spectral efficient transmission. The main characteristics of both the indoor channel (in-home, in-ship, in-car) and the outdoor low voltage and medium voltage channels are reported and compared. A simple approach to statistically model the channel frequency response (CFR) is described and it is based on the generation of a vector of correlated random variables. To overcome the channel distortions, it is shown that filter bank modulation can provide robust performance. In particular, it is shown that the sub-channel spectral containment of filtered multitone modulation (FMT) can provide high notching capability and spectral efficiency. Reduced complexity can be obtained with a cyclic filter bank modulation approach that we refer to as cyclic block FMT modulation (CB-FMT) which still provides higher spectral flexibility/efficiency than OFDM. key words: power line communications, power line channel, channel model, filter bank modulation