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September 21, 2007 A Penton Media Property Volume 5, Number 41

SPECIAL REPORT
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CONTENTS
xG may add twist to broadband-wireless game

New E-911 rules mean more reporting for wireless carriers

Amateur radio enthusiast turns 100

M2Z Networks files suit to overturn FCC ruling

FCC announces E911 deadlines

DHS tests CAD interoperability

GPS fleet management system unveiled

Alabama PD deploys data-sharing software

Las Vegas PD deploys wireless inmate-tracking system

Comtech subsidiary lands $5.3 million Air Force contract

Etherstack announces investment agreement

InterAct deploys E911 system


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Wavelengths
xG may add twist to broadband-wireless game
By Donny Jackson
Sept. 21, 2007

We're less than four months away from the start of bidding in the 700 MHz auction, but be assured that potential bidders already have started preparing strategies to ensure their participation makes business sense for their companies.

While there have been some public moves -- Verizon filing suit against the FCC to get rid of open-access requirements attached to C Block spectrum being the most notable -- most work in this area has been kept private, as bidders try to keep their plans as secretive as possible.

For instance, companies are evaluating which spectrum to bid on, how much the spectrum is worth to the company, whether to partner with others and what options are available to reach customers if they do not secure 700 MHz spectrum, which is expected to be the last significant U.S. spectrum auction for some time.

Open-access and public-safety encumbrances associated with the C Block and D Block certainly have added some notable wrinkles, evaluating whether a business case can be made for bidding on spectrum is nothing new. Although complicated market questions may influence the final decision, the fundamental question is: "Given that we still have to pay to build out a network, how much can we afford to bid on this spectrum and still keep investors happy with our returns?"

According to numerous studies, U.S. consumers have become increasingly reliant on mobile communications, and many do not own static phone lines. Clearly, being able to play in the mobile arena is critical to the future success of content companies such as Google, eBay and Apple.

But the largest players -- Verizon Wireless and AT&T -- have held firm in controlling content on their networks, and net-neutrality rules have failed on Capitol Hill and at the FCC. So, short of bidding billions of dollars for spectrum and billions more to build a network, what are the other options for newcomers wanting some control in the wireless space?

Sprint has had many mobile virtual network operator (MVNO) partners in deals that have yielded mixed results, and content players have to have reservations about their mobile strategy that depends heavily on the health of a company they don't control. On unlicensed spectrum in the crowded 2.4 GHz band, Wi-Fi has been a rousing success from a usage standpoint, but evidence increasingly points to the fact that the short-range technology is not economically viable for a mobile, wide-area network.

M2Z Networks' proposal for a wholesale WiMAX network in the 2.1 GHz band recently was rejected by the FCC, although a new proceeding for the spectrum may be started soon -- but not soon enough to provide clarity to 700 MHz bidders. There's also a possibility that vast "white spaces" spectrum between TV channels could become available. But no one knows what policy will govern those airwaves or when it will happen. The failure of a Microsoft device to show the ability to avoid TV signals in a recent FCC test certainly was not promising.

One intriguing alternative is xMAX, a mobile VoIP system developed by Florida-based startup xG Technology. The system provides wide-area communications via short-duration pulses that require so little power they can be used in the unlicensed industrial, scientific and medical (ISM) 900 MHz band. The first xMAX network is scheduled for commercial launch at the end of November, and the company claims it will have the first 4G network late in 2008.

Of course, there are questions about xMAX. Many wireless engineers have questioned the company's claims of an inexpensive, long-range, low-power system during the past couple of years. And the xG demonstration of xMAX two weeks ago did not go as planned, when a mysterious military-grade jamming of the ISM band occurred the day of the showcase, according to xG officials. (The demonstration worked for a smaller audience the following day, when the jamming disappeared, the officials said.)

Meanwhile, xG has not shown that xMAX works in a truly mobile environment. But company officials say the problems associated with calls from moving vehicles will be solved before the network launch at the end of November.

If so, xG becomes an intriguing variable in the broadband wireless space. Although xMAX is not the most spectrally efficient wireless technology on a bits/hertz/second basis, its low-power characteristics means a service provider does not have to buy spectrum and should result in longer battery life for mobile devices.

By all accounts, the base stations are less expensive. And, if a service provider owns spectrum and can turn up the power, the technology should yield even greater ranges and data throughput.

The timing of an xMAX launch in late November is notable, because that likely will be about the same time potential bidders must declare their intent to participate in the 700 MHz auction. Also interesting is the fact that one of many representatives of financial institutions at the xG demonstration was Colm Donlon, a mergers-and-acquisitions whiz who helped engineer the Nokia-Siemens deal last year and eBay's purchase of VoIP provider Skype two years ago.

xG Technology CEO Rick Mooers has noted that xG needs bigger partners to enable large-scale adoption and pursue its use in other sectors -- for instance, the power efficiencies and peer-to-peer communications of xMAX would seem to be an ideal fit for public-safety communications. Whether a large manufacturer or service provider is interested in partnering with a small company is questionable, because they typically prefer to have greater control.

The possibilities are numerous. Would a Google or an eBay see xMAX as a way to bypass incumbent providers and secure direct access to customers without having to sink billions into a spectrum bid? Would a large manufacturer be interested? Meanwhile, xG has flirted with giant service provider Telefonica for more than six months regarding a deployment in Mexico to challenge the Carlos Slim monopolies in that country.

For bidders who do not secure spectrum in the 700 MHz auction, xMAX could be a nice alternative. The question is whether the technology will be available at that time, because it may be tempting for one of the aforementioned possibilities to make a move with xG even before the auction, assuming their engineers are confident the xG system will work as advertised in a mobile environment.

Mooers repeatedly has said xG Technology is not for sale. But he is CEO of a publicly traded company and would have to listen to any legitimate offers -- and history has shown that any company can be sold, if the price is right.

Even if the company is not bought, a successful network launch could make xG a notable wild card in the 700 MHz auction process. After all, if xMAX enables providers to offer wireless broadband services without owning spectrum, does it make sense for bidders to spend billions for spectrum before they ever begin to build a network?

We should learn the answer during the next several months.

E-mail me at djackson@mrtmag.com.



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In the news
New E-911 rules mean more reporting for wireless carriers
By Donny Jackson
September 21, 2007    
Nationwide commercial wireless carriers could have to generate 30 times as many E-911 location-accuracy reports in five years to comply with new FCC rules approved by the commission last week, according to an official for TechnoCom Wireless, a wireless location services provider and testing company.

Amateur radio enthusiast turns 100
By Mary Rose Roberts
September 19, 2007    
Amateur radio enthusiast Harry Mills celebrates his 100th birthday today. Mills has been involved with radio, both amateur and professional, since 1921.

M2Z Networks files suit to overturn FCC ruling
By Donny Jackson
September 18, 2007    
M2Z Networks has asked a federal appeals court to reverse a recent FCC ruling that denied the fledgling company 20 MHz of 2.1 GHz spectrum needed to make its vision of offering a free, family-friendly broadband wireless service nationwide a reality.

FCC announces E911 deadlines
By Mary Rose Roberts
September 17, 2007   
The Federal Communications Commission last week ordered that wireless carriers must meet the Enhanced 911, or E911, Phase II location accuracy requirements at the public safety answering point (PSAP) service-area level. They also must meet interim, annual benchmarks over the next five years to ensure that they achieve PSAP-level compliance no later than Sept. 11, 2012.


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November 13-14, 2007
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More News
DHS tests CAD interoperability
September 20, 2007   


GPS fleet management system unveiled
September 20, 2007   


Alabama PD deploys data-sharing software
September 20, 2007   


Las Vegas PD deploys wireless inmate-tracking system
September 18, 2007    


Comtech subsidiary lands $5.3 million Air Force contract
September 18, 2007   


Etherstack announces investment agreement
September 18, 2007    


InterAct deploys E911 system
September 17, 2007   


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