Wifi Revolution

It’s all about supply and demand.

Mobile VoIP provider xG Technology Inc. reported today that unprecedented demand for its exclusive xMax technology has resulted in it implementing an increased fee structure for 2008.

“The success of our xMax mobile VoIP deployment program highlights the demand in the marketplace to deploy and deliver our cost-effective mobile IP services,” explained Frank Peake, director of sales and marketing for xG, in a press release. “This change in our program allows us to prioritize potential customers in an orderly manner while also creating additional revenue for the company. xG has already entered into contracts in 130 communities covering approximately 57 million people for 2007, affording us an opportunity to accomplish a fast and cost efficient wireless rollout.”

So the company is backlogged for the rest of 2007. That’s a bummer for service providers who were hoping to roll out wireless VoIP using the company’s proprietary mobile VoIP technology.

As explained in the press release, the increase in the sign up fee applies only to service providers seeking to secure exclusive xMax service territories for mobile VoIP. It does not apply to existing contracts.

According to xG, the decision was made so that the company “can best accommodate the substantial demand it has experienced thus far.”

“Those deployments already contracted for in 2007 remain unaffected,” the press release states.

Meanwhile, the company announced that it is on schedule to begin field trials of xMax systems in the first quarter of 2007. One network will be operated by xG in Ft. Lauderdale, Fla., and a second system will be launched by Far Reach Communications in Daytona Beach.

Russ White, president of Far Reach Communications, said he is “confident in the network’s capabilities and are extremely pleased that xG continues to meet our timelines.”

In an unrelated matter, xG has also acknowledged that - due to technical problems – “statistical records of actual traded volumes are failing to be recorded on certain investment sites.” The company claims its broker “is working closely with the market maker and electronic trading platform to resolve this issue as swiftly as possible.”

xG last made news on TMCnet in July when it announced the launch of its xMax Mobile VoIP service. The first systems are expected be online in the first quarter of 2007.

“xMax provides an unprecedented opportunity for regional ISPs, CLECs, local communications carriers and entrepreneurs by reducing the cost of deploying wireless broadband to the point where they can compete with traditional communications companies,” said Rick Mooers, chairman and CEO of xG Technology, in a press release.

xMax is one of the first mobile VoIP systems to become commercially available. It uses RF modulation and cutting-edge encoding technology that uses individual or “integer” sinusoidal waves to transport data. Developers claim it has much greater range than traditional cellular technologies and fixed wireless approaches such as WiMAX. At the same time transmit power is drastically reduced.

The company announced in July that it was working with regional partners to build a nationwide mobile VoIP service using xMax handsets. The technology promises to deliver mobile VoIP over a large geographic area - at any WiFi hotspot or through an Ethernet connection to any computer connected to the Internet. Thus it stands to revolutionize the mobile industry by significantly lowering the cost of operating mobile networks – savings which can then be passed on to businesses and consumers.

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Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.

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