MELBOURNE, Australia-Cable & Wireless Optus established a subsidiary, Agility Networks, responsible for rolling out Australia’s first tail-end broadband wireless network using local multipoint distribution system (LMDS) technology. The new company’s role was confirmed late last year after Optus paid US$19.7 million for 500 megahertz of 27 GHz spectrum at a one-day auction held in November.
Chris Hancock, Cable & Wireless Optus’ managing director for data and business services, said the carrier has an interest in all access technologies that extend the carrier’s reach and access to new users.
“LMDS is an important element in our strategy, allowing us to provide customers with a range of access technologies,” Hancock said. “It will enable us to directly connect many more customers to the Cable & Wireless Optus network, bypassing the last mile connectivity arrangements we have made in the past.”
LMDS, also known as fiber in the sky, is a broadband wireless access technology suitable for the high-speed delivery of voice and data, media streaming such as video-on-demand, e-commerce applications and application service provider (ASP) products. Speeds can range up to 40 Megabits per second (Mbps) for downlinks and 8 Mbps for uplinks. The technology uses microwave dishes, normally located on building tops, to send voice and data over the airwaves, and it is particularly suited as a low-cost option for urban centers and city business districts.
With demand for bandwidth only expected to increase, Optus’ LMDS move is seen to crucially complement its other broadband offerings, such as its cable service, which passes 2.2 million homes in Melbourne, Sydney and Brisbane, and ultimately, to promote a more competitive marketplace.
According to Agility’s General Manager Mike Callen, the new entity has been a long time in the planning and will target businesses, including other carriers and service providers, in regional centers.
“Over the last year, we have conducted a comprehensive LMDS investigation and have successfully trialed the equipment of vendors in a dozen regional and metropolitan locations. We know our preferred technology works well,” Callen said. Alcatel equipment was used for the trial, and the French vendor is still under contract. However, Agility was negotiating a full-term contract with several vendors at press time.
“As part of our testing program, we already have trial services connected to 35 business customers. From here, our rollout will focus on the business districts of most metropolitan areas in the capital cities and many of the major regional centers.
“Our services and products will be available wholesale to other service providers, including Cable & Wireless Optus, and ISPs (Internet service providers).”
Agility will wholesale a service to carriers and ISPs in all eight capital cities and four regional centers in Dubbo, Townsville, Newcastle and the Gold Coast.
Fifty base stations are expected to be in place by next year. Optus spokeswoman Linda Collard said the network will be rolled out to areas “depending on customer demand,” aiming to fulfill “bandwidth-hungry services.” Analysts estimate Agility will outlay close to US$52.5 million to deploy the network during the next 12 months.
The rollout is expected to be completed in three years. Agility has identified more than 100 localities it will target in the future by analyzing business demographics.
Last November, the Australian Communications Authority offered 126 lots for auction across 21 metropolitan and regional markets, raising US$19.8 million. The other successful bidder, Shin Satellite Public Company, Thailand’s largest private telecom network, paid US$49,000 for 150 megahertz of the frequency band in Western Australia and South Australia.
