WaveSpan intros broadband wireless

WaveSpan is targeting Internet service providers and competitive local exchange carriers with its first product, the WaveSpan 5800. Operating in the unlicensed 5.8 GHz frequencies, the wireless broadband access product delivers a 10 Mb/s point-to-point link in a range of five miles or more, depending on the antennas used.

"Wireless has matured to a technology that we can now use in the access layer," said Mike Kazban, vice president of marketing for WaveSpan.

The product is unique because users don't need to compress Ethernet traffic to a T-1 (1.5 Mb/s) or another access technology with lower bandwidth.

"The real advantage is in the elimination of WAN bottlenecks," said John Armstrong, principal networking analyst for Dataquest.

The WaveSpan 5800, already deployed by ISPs U.S. Exchange and Pacific Net, can be installed quickly and costs far less than fiber, Kazban said. ISPs or CLECS could charge users much less than for fiber but still realize a significant profit. They could also use the WaveSpan 5800 to determine interest in an area such as a business park, then replace it with fiber to offer multimedia services after interest is secure.

WaveSpan may have some hurdles to overcome, though. "It can be a great product for [WaveSpan], but they are also counting on the fact that T-1 and other access product prices will remain rather expensive," said Michael King, associate research analyst at The Meta Group. He has seen lower T-1 prices recently.

King also warned that ISPs or CLECs might be shy to use the WaveSpan 5800 because it operates in unlicensed frequencies. "It would be more difficult to deliver a consistent level of service," he said.

WaveSpan chose the 5.8 GHz frequencies because they are not widely used, reducing interference risks, Kazban said.

The FCC finally set March 23, 1999, for the reauction of PCS C block spectrum. This auction will likely take on a different tone from the original, which is notorious for having produced high bidding and financially troubled players.

Licenses will probably go for much less this time than the average $40 per pop of the first auction. "There's so much spectrum and so much competition, [the licenses] are too devalued to reap any high prices at this point," said Larry Swasey, senior analyst at Allied Business Intelligence.

The FCC set a ceiling for minimum opening bids that is no more than 10% of the amount of the net high bid for the corresponding market in the original C block auction. The upfront payment amount for the reauction is set at 6cents per MHz per pop, but former defaulters must pay 50% more than other applicants.

Companies that buy licenses in markets that are already developed will have to create differentiated services and build their networks quickly, Swasey said.