WaveRider gains entry into lucrative U.S. market with FCC approval of LMS 3000

WaveRider Communications Inc has received Federal Communications Commission (FCC) approval to market its non-line-of-sight technology – considered the "holy grail" of fixed wireless systems. Earlier this month, the U.S. regulator approved the Toronto-based wireless equipment manufacturer’s LMS 3000 wireless modem, which provides raw Internet access speeds up to 1Mbs. The system operates in the licence-exempt 902-928 MHz frequencies. Winning FCC approval was critical to WaveRider’s business plan. It clears the way for the company to sell into the U.S. and to other countries, including those in the Caribbean and Latin America, that routinely adopt U.S. standards for wireless equipment. As well, ISP demand for a wireless technology that does not rely on line-of-sight will be huge, predicts WaveRider VP marketing Charles Brown. "It’s what everybody wants," he told Report on Wireless. "And the reason they want it is because it eliminates truck rolls." One of the biggest upfront costs ISPs face in providing high speed access is the initial service call needed to install the customer premise equipment. Competing against current DSL and cable systemsEliminating those installation costs gives an added incentive to emerging ISPs looking to serve areas that can’t get high-speed Internet access either through DSL or cable. It also increases the profit margins for serving the residential market, which has been playing catch up to the enterprise market in adopting high-speed access. Brown could only speculate on what fee ISPs might charge for wireless high-speed access, saying it would likely be only slightly more than access via DSL and cable. The technology could prove valuable to companies that have tried to bring high-speed fixed wireless to homes, but have been hampered by line-of-sight issues and installation costs. Look Communications Inc is one such company. It has stopped taking on new customers, primarily because of the high upfront costs (RoW, Dec. 11/00). "I think those players are going to be taking a serious look at this because they obviously thought the idea of providing high-speed fixed wireless to the consumer market was a good one," says Brown. "If they were interested in that business before, we can (now) go to them with a much stronger business proposition as far as here’s why you want to do this and here’s how you can do it effectively." WaveRider says there is demand for this type of equipment. The company has already sold systems to an Alberta-based ISP as part of the first phase of its national roll out. Calgary-based Platinum Communications Corp established its first network in High River AB last year, and began deploying the non-line-of-sight technology to more than 100 residents and small businesses in Okotos AB in December. Moving into the licensed bands part of strategy Expanding markets is key to WaveRider’s growth strategy, and it’s eyeing a move into the licensed bands in the 3.4 GHz range as a key driver of that. "We see the band as offering lots of potential to go into countries where either the 900 MHz or the 2.4 GHz isn’t available," Brown told RoW. "It really gives us access to a new customer base and also positions us to grow the business on an international basis." The second stage of WaveRider’s strategy is to acquire a radio manufacturer or sign a technology licensing agreement with an original equipment manufacturer rather than develop the equipment in-house. Brown says the strategy makes sense when you consider it would take another 12 to 18 months of development before the radio would be ready for deployment. "So for us to get to market quickly, we’re much better off to acquire a commercially available radio," he explains. "That will let us get into the (licensed) market and be early in that market."

WaveRider gains entry into lucrative U.S. market with FCC approval of LMS 3000

News | March 19, 2001

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