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Raze solution designed to replace LEC service

The wireless broadband boom is in full swing, as evidenced by the dozens of companies that have popped up in that arena in the past year alone. Among them is a Richardson, Texas-based start-up called Raze Technologies, which is developing a bundled voice and data fixed-wireless system that it says has the potential to replace the services provided by incumbent local exchange carriers altogether.

Founded this June, Raze will manufacture what it calls an “enterprise-level” system for the multichannel multipoint distribution service frequency band, which generally serves the small office/home office and residential customer. The non-line-of-sight system uses software radio technology and is deployable at a cost of $500 or less per subscriber, the company said.

“We are providing a total solution to the end user and giving local exchange carriers a way to increase their profits by 50 percent immediately, and by more than 200 percent in the long term,” said John J. Festa, chairman, president and chief executive officer of Raze.

Raze said other enterprise-level solutions are usually deployed in the LMDS frequency bands and can cost $3,000 to $5,000 per installation. One reason Raze’s system is less expensive than many data-only technologies is it reuses PCS cell structures, said Raze. Approximately 500 subscribers can operate in one cell sector, at data rates up to 155 Megabits per second. End-user installation also is simple.

“You will buy the subscriber unit like you do a DSS (digital satellite service) dish,” said Nicholas Thomas, co-founder and senior vice president of sales and marketing for Raze.

A professional installer then connects the unit to the existing phone line in a subscriber’s home.

Raze believes it is different than many wireless broadband system providers because it is one of the first to bundle data with voice. AT&T Corp.’s “Project Angel,” now operating in the Dallas/Fort Worth area, provides a similar service but at a much higher price point, and with more complicated equipment, according to Raze. The simplicity and low cost of Raze’s system makes it an attractive alternative for service providers that want to bypass the charges imposed by ILECs. Using Raze technology, the company noted housing developers could potentially become their own local exchange carriers as well.

Thomas said skepticism exists among consumers regarding replacing their wireline connection with a total wireless solution, especially if the consumer has experienced poor mobile-phone service, but the company is confident its technology is just as reliable.

“We’re here to use proven technologies altogether,” said Paul Struhsaker, co-founder, chief technology officer and senior vice president of engineering for Raze. Struhsaker also noted the radio frequencies Raze’s system uses will not interfere with any other frequencies.

In the coming months, Raze plans to target competitive local exchange carriers and independent telecom companies primarily, and ILECs secondly. It also will work with original equipment manufacturers such as Motorola Inc. and Lucent Technologies Inc.

An alpha test is slated for the spring, a beta test/product launch is planned for June and field trials are set to commence next fall.

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