First Avenue, RCN link up

Wireless access provider First Avenue Networks and cable over-builder RCN have entered into a strategic partnership which will enable each company to reach a broader customer base.

First Avenue will provide RCN with high-speed fixed wireless extensions from the cable company’s fiber optic backbone to reach a much larger number of business customers without running expensive fiber laterals. RCN will provide First Avenue with access to points of presence on its fiber network that expand the wireless company’s ability to provide backhaul services for the exploding mobile data market.

“These are both multi-billion dollar opportunities, which are exploding at the same time,” said Mike Gallagher, president and CEO of First Avenue. “It’s exciting for us because the two companies have the same vision.”

“We have 20,000 buildings that are within 500 feet of our fiber optic network,” said Timothy Dunne, executive vice president and CTO of RCN. “We can use this as part of our sales kit to go into those buildings with wireless extensions rather than having to dig up the street to install fiber. Plus we can provide them with backhaul through our fiber optic network – it’s a mutually beneficial deal.”

The pair are conducting a trial in two buildings in New York City and must still sign a definitive agreement, but the plan is for First Avenue to provide fixed wireless extensions at speeds up to 155 Megabits per second to RCN Business Solutions, the business services arm of RCN. The company announced this fall its renewed efforts to court business customers.

RCN, in turn, will provide fiber links to First Avenue to support its wireless backhaul and fixed wireless access businesses. If the New York trial is successful, the two companies will expand their arrangement to RCN’s other markets of Boston, Chicago, Philadelphia/Lehigh Valley and Washington, D.C.

“It’s a win-win-win situation,” Gallagher said. “Both companies win and our customers win as well.”

RCN has metropolitan fiber networks that are densely deployed in residential and business communities, but faces the expensive task of deploying fiber laterals into buildings or purchasing access from incumbents at escalating prices. Using First Avenue’s fixed wireless spectrum is more cost-effective, Gallagher said.

The partnership reflects the maturation of the fixed wireless access market, which is already at use in Europe for 70% of wireless backhaul, he added.

Widespread deployment of fixed millimeter wireless technology in Europe and Asia has helped technology mature and driven down the price points as well.

“The technology is complete – we are able to provide to our customers TDM, ATM and IP all on one platform, which the carriers are very thrilled to hear,” Gallagher said. “Plus, the point to multipoint technology which was often touted and never delivered, is here today, so we can reuse spectrum over and over.”

While business customers may remember earlier fixed wireless deployments, which suffered from both technical and cost problems, the current systems “will speak for themselves,” Dunne said. “First Avenue has a great product and we want to put it in front of our customers.”

First Avenue built a national fixed wireless footprint by acquiring the 39 Gigahertz spectrum once owned by Advanced Radio Telecom and the 24 GHz assets of Teligent, another fixed wireless pioneer that didn’t survive. The company holds nearly 600 Mhz of spectrum in the top 75 markets.