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New Technology Provides Options for Mobile Broadband in Unserved Rural Areas

Company Selling Wireless Devices to Bridge Rural Mobile Broadband Gap

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XG Technology, a Florida based wireless communications company and the developer of a portfolio of wireless communications technologies is marketing a suite of products which they claim will fill a void in the rural mobile broadband market.

XG Technology is selling equipment which uses the same dynamic frequency acquisition process as white space uses, with the same radio frequency bands used by baby monitors, cordless phones, and wireless security devices. By using a "cognitive radio technology" to move from frequency to frequency between the 902 MHz and 928 MHz band, companies wishing to deploy the new technology need not be experts in provisioning new customers. This can include both consumers and public safety users who require temporary but critical communications as events warrant.

Using dynamic frequencies for broadband is not a new idea, but XG Technology is marketing the the first consumer application of this type of technology for mobile broadband, which follows the recent FCC approval of the first white space device late last year.

Using white space to provide broadband service is part of the FCC's overall plan to find more wireless spectrum, and expand broadband availability across the country. Although using white space is experimental at this point, it could have a place in the national broadband plan, particularly in environmentally sensitive areas such as Wilmington's wetlands.

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The XG product line includes wireless access points, switches and personal hotspots. Similar to devices offered by the major carriers such as Verizon and AT&T, hotspots can support multiple wireless devices such as smartphones, tablets and laptops.

The company recently announced that it received a $10 million purchase order from TelAtlantic Wireless Services, LLC (“TWS”), an Alexandria, Virginia-based company whose management is affiliated with multiple rural local exchange carriers in the Appalachian Region and Mid-America.

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The order covers xMax cognitive radio networking equipment that includes xMax wireless access points, xMod personal hotspots (capable of supporting existing smartphones, tablets and laptops) and xMSC mobile switching centers purchased over a period of three years and across three separate market areas. Orders scheduled for deployment in year two and three are dependent on network acceptance of the initial xMax system installation. Under the terms of the orders, xG will be paid upon the delivery of xMax equipment to TelAtlantic Wireless Services, which is intended to commence in the second half of 2013.

According to Jim Crabtree, Vice Chairman of TWS:

"In the current uncertain regulatory environment, there is a need to evolve as a provider of telecommunications service. To achieve this, our goal is to introduce new regulated and non-regulated products and services in rural communities. We are proud to play a key role in incorporating game-changing technologies such as xG's xMax mobile broadband solution that helps us offer state of the art services to rural America."

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XG Technology reports that the TWS purchase order brings the total announced backlog of orders and reseller agreements for xMax equipment and services to over $29.6 million.

"This order continues to demonstrate the growing appeal of xMax into a wide range of vertical and geographic markets including public safety, gaming and casinos, government, education and rural telephone companies.

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The xMax cognitive radio solution provides a key advantage to TelAtlantic Wireless Services and other service providers operating in the rural telecom market. These providers have traditionally had limited options for deploying wireless services due to a lack of appropriate or sufficient licensed spectrum assets. xMax has the ability to operate in unlicensed spectrum, which enables the delivery of reliable wireless voice and broadband services without the need for costly licensed frequencies.

George Schmitt, xG Director and CEO of MB Technology Holdings, the parent company of xG, said, “We are very honored to receive this order from TWS. Rural broadband is a growing market for xG, and this order supports our mission of delivering high-performance, cost-effective xMax wireless networks to the thousands of rural and independent service providers seeking an effective broadband solution.”

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