SARASOTA, Fla.—XG Technology L.L.C. said its first consumer product, a Voice over Internet Protocol handset, will be available by the end of this year and that the device will work with low-cost xMAX-enabled base stations. The handsets are expected to be dual-mode, equipped with both xMAX and Wi-Fi chips, enabling users to roam into areas not covered by the xMax network of base stations.
In addition, xG said the handsets will also have Ethernet jacks so that users can plug into data networks for fixed-line VoIP calling.
In November 2005, the company held its first public demonstration of xMAX technology for media and investors in Ft. Lauderdale, Fla. In that demonstration, an xMAX-equipped transmitter broadcast a 3.67 megabit-per-second signal more than 18 miles using only 35 milliwatts of RF output power. XG said the results showed the xMAX signal meets both conducted power and conducted bandwidth requirements for operation within the ISM 900 MHz unlicensed band.
The company explained that its xMax technology is a novel way of encoding RF signals and can be used in either wireless or wired applications, including cable and copper. By improving range, xMAX reduces the amount of infrastructure required to provide coverage to a given area. And less power translates into improved battery life for mobile devices, which remains a major challenge for high-data-rate wireless devices.
The FCC has already approved the equipment used in the November demonstration, and in February, xG hired the London office of Credit Suisse as a strategic adviser for the company’s technology launch.
The company estimates that the cost of deploying its xMAX technology is 25 times less than the cost of deploying a traditional wireless network. In other words, says xG, small companies, institutions, and communities can deploy wireless VoIP networks for thousands rather than millions of dollars.
However, Rick Mooers, chairman and chief executive officer of xG says the company will likely launch outside the U.S. to avoid political wrangling with telecom lobby groups who could view the technology as a threat to U.S. cellular and landline carriers.
“We’re a U.S. company and would prefer to deploy the first systems here, but there has been significant international interest and it may be more prudent to first enter the marketplace in another country,” Mooers said. “In the U.S., we plan to utilize a grassroots marketing campaign to roll xMAX out on a viral basis … Consider how the Internet Service Provider industry was originally built: Companies and institutions put up ISP networks but so did very small companies and individuals. Our business strategy is to meet an existing demand, not try to create a demand.
“We’re not trying to be a 3G operator—we’re trying to do simple voice service using off-the-shelf handsets with our chip built into it. Basically, we’re a low-profile company and we’re confident about our technology. We feel we have to be careful, we don’t want to get squashed by a big company.”
