Jato Communications Corp., a small Denver-based company, has big plans in the Local Multipoint Distribution Services market.
“We think that there is going to be a bandwidth scarcity and LMDS is the ideal technology and spectrum for high-speed data transport,” said Brian Gast, chief executive officer of Jato Communications Corp. “Because of the types of applications that are Internet driven, people have exponential amounts of bandwidth needed to connect local area networks with other networks.”
Jato this fall was spun off from Formus Communications Inc. to pursue 27.5 GHz to 31.3 GHz LMDS licenses. The company will compete in the Federal Communications Commission’s LMDS auction, scheduled to begin Feb. 18, under the very small business category. The rules for very small businesses will provide Jato with a 45-percent bidding credit, which is either greater than or not available to larger companies, said the company.
Jato plans to develop and operate a series of wireless broadband telecommunications systems in the United States to provide high-speed two-way data transfer services. Gast said the company primarily will market its system to small- and medium-sized businesses through wholesale channels including competitive local exchange carriers, incumbent LECs, Internet service providers and inter-exchange carriers.
The point-to-multipoint system will address the “last mile” capacity limitations of copper wire telecommunications networks, said the company. Equipment at the customer site is attached to an antenna that transmits data and voice communications over the microwave link to the radio network. The information is then transmitted to a central facility, which interconnects with telephone networks, the Internet and video feeds, said the company.
While Jato’s system will be used mainly for data transfer, it will carry some voice signals on a private line or switched basis, said the company.
Jato is conducting LMDS trials with Hewlett-Packard Co. at HP’s Wireless Systems Group facilities in Cupertino, Calif. The trials deliver combined voice, video and data service through HP’s LMDS equipment to existing public networks and simulated business and residential sites.
“LMDS technology offers one of the most cost-effective and reliable means of delivering high-speed data and telephony services,” said Gast.
According to Jato, the advantages of LMDS technology include massive capacity optimized for two-way communications, scalable infrastructure that can be built to serve specific demands, ease of network deployment, high quality digital transmission and the ability to extend to areas where fiber-based alternatives are economically impossible.
The company’s parent, Formus, was formed to develop wireless broadband systems using LMDS or similar licenses in markets outside of the United States. Formus owns licenses in Latin American and Eastern European countries.
Formus will be a minority investor in Jato, whose institutional investors include The Centennial Funds, Chase Capital Partners, Spectrum Equity Investors and Telecom Partners.
Gast said he anticipates the company will have networks deployed by the end of next year, assuming there are no further delays in the auction process.
