Monday, July 15, 2002

Terabeam Acquires Harmonix My thanks to Kurt Mackie, Editor of Broadband Wireless Online (linked at left) for the heads-up on this announcement. I genuinely didn't believe it when I read it and had to check it with Harmonix (no announcement there) and then Terabeam. I rarely do this... but here's Terabeam's press release, verbatim: Terabeam Adds Millimeter Wave Radio to its Broadband Wireless Stable Terabeam acquires Harmonix Corporation KIRKLAND, WA. — July 15, 2002 — Terabeam Corporation, a pioneering developer of broadband wireless systems, announced today that it is broadening its product portfolio beyond free space optics (FSO) to include millimeter wavelength radio products as well. The acquisition of Harmonix Corporation, one of the leading innovators in the design and manufacture of millimeter wavelength wireless communications systems and components, instantly expands the scope and variety of Terabeam's broadband wireless solutions. "The world's leading telecommunications carriers have told us they are looking for reliable and cost-effective means to extend their networks," said Terabeam chairman, president and CEO Dan Hesse. "Terabeam free space optics and millimeter wavelength technologies are two ways to accomplish this. Both have their strong points and with both under the Terabeam banner, we can offer a full range of broadband wireless capabilities to carriers worldwide." Terabeam Elliptica™ FSO Terabeam 60GHz System In addition to free space optics equipment and services that Terabeam offers with its Magna™ and Elliptica™ products, Terabeam has added a 60 GHz point-to-point wireless system that provides Fast Ethernet, OC-3, OC-12 and soon 1.25Gbps/Gigabit Ethernet full duplex connectivity. Field-proven over the past 5 years as a private network in Tokyo, these systems utilize proprietary Direct Digital Modulation (DDM) to support both IP and packet-switched protocols. Like free space optics, the 60 gigahertz (GHz) millimeter frequency region was used by scientists, the military and government agencies for communication between satellites in space or for covert, secure communications links. During those early days of use, equipment operating in this spectrum was very difficult to manufacture and too expensive for general use. No frequency allocation existed for general public use. Technological advances have reduced the cost of millimeter wavelength systems, making them relatively inexpensive compared with fiber optic cabling. With demand for data communications spectrum exploding, the FCC eventually allocated this spectrum for unlicensed operation. Terabeam's new capabilities have some important similarities, but they also have some important differences, which are synergistic and complementary to Terabeam's unique free space optics systems: Terabeam's 1550 nanometer/193 THz FSO and the 60 GHz true millimeter systems are very high capacity wireless systems that provide the provisioning flexibility and price performance that terrestrial systems like fiber cannot. Both Terabeam's FSO and 60 GHz systems use "unlicensed"frequency, with the accompanying economic advantages. Terabeam FSO and millimeter wavelength systems operate at similar ranges and data rates. FSO's freedom, and 60GHz's near-freedom from interference (a unique property to this section of the RF band), allows for great system capacity and scalability. This freedom from interference, combined with highly focused "beams," make both kinds of systems, and Terabeam FSO in particular, secure communications media. The two technologies are also complementary: Terabeam FSO systems are less susceptible to rain than are 60 GHz systems, while 60 GHz systems operate better in fog than FSO systems. Both Terabeam FSO and millimeter wavelength systems are rooftop-deployable, but Terabeam's Elliptica systems, the only CDRH/IEC Class 1 high capacity system in the world, are totally safe and free of warning labels or restrictions in any indoor installation. They operate reliably through almost any kind of window coating. Perhaps most important of all, while FSO is usually less expensive than fiber, Terabeam's millimeter wavelength systems will offer unprecedented price performance. Terms of the acquisition were not announced. Terabeam's millimeter wavelength division is based in North Andover, Massachusetts. Added Hesse, "We have taken proactive steps at Terabeam to ensure we're in top condition to run a marathon. After this acquisition, even if one takes a worst case view and assumes telecommunications business conditions will not improve, we have no debt and the cash on hand today to get us into 2006 at a minimum." About Terabeam Terabeam provides telecommunications carriers and enterprise customers with broadband wireless systems and professional services to extend their existing networks. Terabeam delivers the speed, capacity and connectivity of fiber optics and the delivery times of a wireless technology by utilizing free space optics (sending invisible light primarily through office windows) and millimeter wavelength radio technologies. It's fiber optics without the fiber. Terabeam is ISO 9001 registered and certified. For more information, visit Terabeam's web site at http://www.terabeam.com. For more information contact: Jennifer Gehrt Waggener Edstrom (425) 638-7101 jgehrt@wagged.com (End Press Release) This is a stunning development in the Broadband Wireless Internet Access industry. The combination of the highly-complementary wireless technologies, the high bandwidth possible with either, coupled with both being license-exempt quickly positions Terabeam to be a major competitor for delivering cost-efficient Internet and Intranet bandwidth in urban areas. I'll have more to say about this development in the coming days.   10:31:19 PM

Will Worldcom Keep Its MMDS Wireless? Joanie Wexler Asks "Will MMDS Be Another WorldCom casualty?" - In her July 15, 2002 NetworkWorldFusion column on wireless (no link available), Wexler writes: The destiny of WorldCom's MMDS service could rebound, though. The carrier recently began trials in Memphis, Tenn., of IPWireless' nonline-of-sight (NLOS) broadband wireless network equipment, which provides 3M bit/sec speeds for both fixed and mobile use. This second-generation network compares favorably with existing MMDS services that offer sub-T1-speeds and require a line of sight between a customer's outdoor transceiver and the carrier's base station, substantially limiting service availability. Sprint is also currently testing IPWireless in Montreal and other vendors' NLOS gear in other markets. (End of Fair Use excerpt.) I'm more sanguine than Wexler. To me, that WorldCom's MMDS business will be a casualty of Worldcom's financial debacle seems a near-certainty. I agree with Wexler's points that, in the long run, broadband wireless service could serve Worldcom well; conceivably even give them a significant advantage. But to do so in the near term would require Worldcom to use capital that's needed for corporate life-support... not likely. The IP wireless equipment isn't cheap for base station equipment, and the base stations need to be densely spaced, akin to PCS base stations. To effectively market a "install it yourself" / nomadic Broadband Wireless Internet Access service like what is possible with IP Wireless equipment, Worldcom would need to achieve saturation coverage of a given market before commencing sales and marketing activities. Unlike MMDS rival Sprint (with its Sprint Sites subsidiary), Worldcom doesn't have easy access to PCS sites. Then there's the expenses for the necessary sales and marketing overhead, support, etc. To me, Worldcom's financial debacle combined with the capital requirements to start selling next-generation Broadband Wireless service argue against Worldcom going forward with Broadband Wireless Internet Access service. Likely Worldcom is actively shopping their MMDS spectrum licenses and IFTS spectrum leases and hoping for a reasonably high bidder. They'll receive offers, but likely nothing like what Worldcom feels its "valuable MMDS spectrum" is worth. Likely the Worldcom MMDS business will end up an asset to be disposed of under Chapter 11. Sadly, Worldcom's actions will likely cause a cascade effect; Sprint will likely put MMDS on hold, waiting to see where/how Worldcom's MMDS licenses end up, and Nucentrix and Clearwire, the two minor MMDS and IFTS players, respectively, are even more on hold waiting to see what happens with Worldcom's MMDS licenses. With deployments on hold, even the "winner" vendors such as IP Wireless are weakened considerably. FCC's Spectrum Policy Task Foce Announces Public Workshops On Issues Related To Commission's Spectrum Policies - These workshops are the next phase of the SPTF's work on FCC Docket 02-135. The workshop issues and dates are: Experimental Licenses and Unlicensed Spectrum - August 1st Interference Protection - August 2nd Spectrum Efficiency - August 5th Spectrum Rights and Responsibilities - August 9th All of the workshops will be held from 9:00 AM - 3:00 PM in the Commission Meeting Room, 445 12th Street SW, Washington, DC. Panelists are currently being invited and additional information will be provided in a subsequent public notice. Audio/Video coverage of the workshops will be broadcast live over the Internet from the FCC website at www.fcc.gov/realaudio. For further information, contact Lauren Van Wazer at 202-418-0030 voice, 202-418-1744 fax, and e-mail lvanwaze@fcc.gov. Alvarion Debuts BreezeAccess V - Long anticipated, and already released in other countries (as reported in my June 18th entry), Alvarion today announced the BreezeAccess V, the 5 GHz component of Alvarion's well-regarded BreezeAccess Broadband Wireless Internet Access product line. This will provide considerable flexibility to WISPs who have deployed BreezeAccess II (the 2.4 GHz version) to mix and match while keeping much the same base station hardware and infrastructure. IT Wireless Magazine To Debut In Fall, 2002 - Looks promising for in-depth coverage of enterprise use of Wireless LANs. There are hints on the web site that they're at least aware of non-LAN Broadband Wireless Internet Access, so we'll see. More at their web page - www.it-wireless.com. 7:45:51 PM

© Copyright 2002 Steve Stroh.