XO 'launches' familiar name for fixed wireless

XO Holdings last week "launched" a wireless company - one that bore it six years ago.

The competitive local exchange carrier (CLEC) reintroduced Nextlink to the industry as a provider of fixed broadband wireless services to businesses, government agencies and other service providers. In 2000, CLECs Nextlink and Concentric merged to form XO.

Nextlink utilizes licensed Local Multipoint Distribution Service (LMDS) wireless spectrum covering 75 metropolitan markets across the country. The service will be marketed as an alternative to conventional broadband services delivered over copper and where fiber is unavailable or too costly, says Tom Cady, Nextlink's president.

"Fiber is just not always available, or is cost-prohibitive at times and takes time to deploy," Cady says.

He contends that Nextlink is the largest holder of fixed wireless spectrum in the country. With this asset, Nextlink will be targeting "middle mile" applications such as wireless backhaul and wireless metropolitan Ethernet.

Cady says backhaul is a $2 billion market that will more than triple by 2010. Wireless metropolitan Ethernet, which is less than a $1 billion market, is expected to double through 2009, he says.

Nextlink's services, offered in the 28GHz to 31GHz range, are for locations up to 7 miles from and in line-of-sight of a Nextlink wireless hub. Speeds range from 1.544Mbps T-1 up to 622Mbps OC-12 in point-to-point or point-to-multipoint configurations. Nextlink says service reliability is up to 99.999%.

Wireless T-1 will be aimed at cellular backhaul, while wireless metropolitan Ethernet will be offered to support more bandwidth-intensive mobility applications and content, videoconferencing, distance learning and IP telephony.

Nextlink also will offer a wireless dedicated Internet access service for businesses or government organizations in locations that lack direct fiber connectivity.

Although XO has had the LMDS spectrum for several years, fixed broadband wireless has never enjoyed significant success in the marketplace. Emerging operators Winstar, Teligent and Metricom went bankrupt early this decade, while at the same time AT&T Wireless closed its operations, Sprint scaled back its fixed wireless plans, and MCI sold off its fixed wireless assets to Nextel.

But Cady says now is the "right time and right place for fixed wireless," with next-generation convergence and mobility applications, content and broadband access alternatives coming into vogue.

Analysts agree.

"The timing is much different, and that's very important," says Josh Holbrook of the Yankee Group. "That technology right now is hot. In this game timing is everything. It's like surfing: If you're behind the wave you don't get to ride it; if you're in front of it, it crashes on top of you; but if you get it just right, you can ride the wave."

Nextlink's challenge will be getting enterprises to accept wireless as a reliable, carrier-grade access technology, Holbrook says.

Nextlink is launching service in Dallas, Los Angeles, Miami, San Diego, Tampa and Washington, D.C., with additional market launches planned over the next two years. Nextlink is providing broadband wireless services to a major national wireless carrier, delivering wireless backhaul and network redundancy and diversity services across markets in south Florida. Cady would not identify that carrier.