[March 29, 2006]

xG's First Product to be a Wireless VoIP Phone

By Patrick Barnard

TMCnet Associate Editor

xG Technology, a new kid on the block in the world of mobile communications, announced today that its first product will be a wireless VoIP phone that will work on the company’s unique xMax wireless platform.

According to the company, the new phone will be on the market by the end of 2006.

xG Technology has not announced which manufacturers will be putting its chips into their phones, however, the company has reportedly worked out a deal with a major handset maker, the name of which will be announced later this year.

xG claims its proprietary, chip-based wireless technology, which is completely new on the market, “is the lowest cost method yet developed for deploying competitive wireless services.” The system, which works in the sub-GHz frequency range, is said to be “1,000 times more efficient than WiMAX,” can send and receive signals at a range of up to 18 miles. The technology uses “single-cycle modulation,” and also uses a narrowband timing signal to synchronise and decode a wide-band, low-power signal (similar to that used in ultra-wideband).

The real strength of the platform, however, is its efficiency. Compared to WiMAX and WiFi systems, xMax operates at much lower power levels – so low, in fact, that the company claims a base station can operate on a single watch battery for years. Yet xMax costs roughly 25 times less than a traditional wireless phone system.

During a company demonstration in November 2005, xG transmitted signals wirelessly using the xMax system at speeds of up to 7.4 Mbps per MHz per Watt, using a 50mW base station and omni-directional antenna.

The company claims that with this new technology, “small companies, institutions and communities can deploy wireless VoIP networks for thousands rather than millions of dollars.” While it may seem somewhat unorthodox, the robust, yet affordable technology holds promise for a wide variety of applications in the future.

“Our business strategy is to meet an existing demand, not try to create a demand. Mobile VoIP meets that requirement,” said Roger Branton, xG Technology’s CFO and COO, in a press release. He added that xG has already established relationships with numerous manufacturers to ensure that scaling will not be an issue.

According to the press release, the new VoIP phone will be dual-mode wireless – e.g. it will come equipped with a WiFi chip so that users will be able to roam to areas not initially covered by the xMax networks. In addition, it will sport an Ethernet jack, allowing users to plug into fixed wireline networks. Although seamless handoff between WiFi and xMax won’t initially be available, company officials have said they hope to eventually bring this capability.

xG has grand plans for the deployment of its disruptive new technology – however, it is unclear whether xMax will first be deployed in the U.S. or overseas.

“We’re a U.S. company and would prefer to deploy the first systems here - but there has been significant international interest and it may be more prudent to first enter the marketplace in another country,” said Rick Mooers, the start-up’s CEO and board chairman.

Mooers said the Florida-based company hopes to ultimately bring its platform to networks all over the globe – but for now the company plans to do it based purely on demand. Using a grassroots marketing campaign, xG hopes its platform will spread from network to network like a “virus.”

“To envision this, consider how the Internet Service Provider industry was originally built,” Mooers said, harking back to the early 1990s. “Companies and institutions put up ISP networks, but so did very small companies and individuals.”

Currently, xMax only has regulatory approval in the U.S.

For more information, visit www.xgtechnology.com.

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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