To: Mark Oliver who wrote (2491 ) 6/3/1999 11:50:00 AM From: ajs Read Replies (1) | Respond to of 4298
Can someone explain the difference between fixed wireless technology and wireless cable technology? Is the frequency used the difference? ajs -------- [Wall Street Journal, B4.] It's called "fixed wireless," and it has fast become a fixation for many big communications companies. In recent weeks companies including MCI WorldCom, Sprint and the Liberty Media unit of AT&T have spent billions of dollars to establish beachheads in this "broadband" technology. The service is attracting attention because it allows companies angling to sell interactive video, Internet connections and phone services to reach potential customers directly - rather than having to pay tolls to go through the regional Bells, or to build their own expensive wired networks. As the name implies, fixed wireless is a stationary wireless service. Networks typically include a series of "base stations" armed with wireless antennas that are connected to other gear. Customers usually need a rooftop antenna. The services offered, which can include high-speed Internet access and traditional local phone service, are often offered at deep discounts from the rates charged by traditional providers. Nobody is making any money on this yet - in fact, most purveyors of the technology are bleeding a lot of red ink. But some of the country's savviest high-tech investors see great potential. [A] new convert is cable magnate John Malone, chairman of Liberty Media. Earlier this week, Liberty announced plans to buy Associated Group, the largest shareholder of fixed-wireless company Teligent. The transaction would give Liberty a 41% stake in Teligent, considered a highflier in fixed-wireless, and a seat on the company's board. Liberty said the move was a slam-dunk, considering the growing needs of the broadband audience and a demanding customer base that needs to move information quickly and seamlessly. "As we continue to move into broadband networks, there will be more information flowing and a greater need to move information quickly," said Gary Howard, Liberty's chief operating officer. Fixed-wireless carriers use "point-to-multipoint" technology that relies on a central antenna to send signals to customers' rooftop antennas, and also receive traffic from these antennas. The system uses high-frequency signals, and requires a clear line of sight between antennas. Since fixed-wireless companies don't have to lease parts of their networks from the Bells, their costs tend to be relatively low. It also is faster to set up the antennas than to construct a wire line network over the "last mile" to customers' offices and homes, which requires digging up streets and yards and manually laying lines. The technology isn't flawless. With some early systems, rainy weather faded the signals, and the line-of-sight technology was tough to install in dense areas. But analysts say most issues have been solved.