Laser Wireless — the Next Big Thing?

Laser technology, which is point-to-multipoint, is used to create cellular-like IP-based metropolitan area nets in densely populated business centers. It uses spectrum in the unlicensed 190 Terahertz (THz) range and is capable of connection speeds up to 1 Gigabit per second.

by Gerry Blackwell [July 27, 2000]

Most ISPs exploring broadband wireless know all about various technologies for using licensed and unlicensed radio spectrum, although they may have given up on keeping them straight.

But it turns out RF (radio frequency) is not the only wireless game in town. You can also transmit IP data over light waves. Who would have thunk it?

Light speed
This is exactly what companies like Seattle-based TeraBeam plan to do. TeraBeam is one of a clutch of firms using laser optical technology first deployed in the early 1990s for providing point-to-point broadband connections.

Think of it as IR (infrared) on steroids.

The TeraBeam technology, which is point-to-multipoint, is used to create cellular-like IP-based metropolitan area nets in densely populated business centers. It uses spectrum in the unlicensed 190 Terahertz (THz) range and is capable of connection speeds up to 1 Gigabit per second.

The company was formed in mid-1997 and has been developing the technology over the past two and a half years, a period that senior vice president of corporate development Stephen Gartside refers to as "deep stealth."

TeraBeam Networks, a services company, has been operating trial networks since mid-1998 - in secret, of course. Its sister company, TeraBeam Internet Systems LLC (TIS), which is 30-percent owned by Lucent, developed and builds the infrastructure equipment.

TIS is just now beginning to ship commercial product. But unlike most of its lasercom competitors, it will not sell to end users or carriers. It only sells to TeraBeam Networks which plans to operate what it calls TOWNs — TeraBeam Optical Wireless Networks — in major cities across the country.

TeraBeam Networks expects to have its first city up and running before the end of this year. The initial launch will be followed by a "very aggressive" roll-out to other cities, Gartside says, although he won't say how many cities in the first year or even which will be first.

As the crow flies
Indeed, TeraBeam seems to be still in stealth mode — old habits die hard. Gartside also won't say anything concrete about service pricing, although he hints the company will be able to significantly undercut wireline and RF competitors' prices.

This should be possible because of TeraBeam's efficient cost structure. Networks consist of multiple hub stations — equivalent to PCS network cell sites and end customer transceivers. Both can be placed inside buildings, pointing out through windows.

Obviously, line of sight is an issue. But there are no roof rights to negotiate or pay for — and, of course, no fiber to pull or rights of way to negotiate.

Not having to place infrastructure equipment on rooftops means network set-up and customer provisioning can be very rapid. "Customers will literally receive the transceiver, sight it back to the nearest hub station, plug it into their LAN - and they're in business," Gartside explains.

And because TeraBeam's is a true point-to-multipoint network technology — hub stations communicate with each other using the same technology and customers are connected to an IP cloud — the company is able to reuse infrastructure much more efficiently than point-to-point operators.

Bursting free
Besides lower prices (presumably) and rapid provisioning, Gartside says other key components in TeraBeam's value proposition are simplicity and burstable bandwidth.

It's simple because TeraBeam uses standard IP and Ethernet technology. Anyone who can configure a T1 connection to an Ethernet LAN can handle set-up of the TeraBeam transceiver, Gartside says.

And customers will be able to subscribe to a certain amount of bandwidth — 2, 5, 10, 100 megabits — but have access to much more as they need it, without committing to a bigger pipe for all time.

Initially, it will be a "retail-centric" sales model. In other words TeraBeam Networks will sell to end customers only. Then, sometime in 2001, it will begin to sell wholesale to carriers and ISPs. No details on that either — more deep stealth.

Even in the retail-centric phase of the roll-out, of course, customers will be able to use their TeraBeam connectivity to reach an ISP's POP to get very high-speed access. This is exactly what TeraBeam expects many will use it for.

While there may not be any significant direct financial benefit to ISPs from this, it's worth noting that TeraBeam will at least not function as an ISP itself. And ubiquitous gigabit access will have positive indirect impacts on ISPs.

Be a good host
"You might not need 10 or 100 megabits to do e-mail," Gartside notes. "But when you're hosting applications, bandwidth becomes very important." And certainly many ISPs are now looking to application hosting for additional revenues.

TeraBeam will also, Gartside says, "enable a whole new class of applications," although the only one he mentions is tired old video conferencing.

For ISPs that service business customers in densely populated downtown cores and business parks, TeraBeam will offer an interesting service opportunity — at some point.

Two in the bush
In the meantime, other lasercom companies can sell you field-proven equipment and help you set up your own point-to-point connections, though Gartside claims competitors' technologies aren't as scalable or high-capacity as TeraBeam's.

Still, check out LSA Inc. of Exton, PA, SilCom Manufacturing Technology Inc. of Mississauga, Canada, and Boston-based Conversant Communication Technologies.

 —End