xG Technology white paper shows xMax to be more profitable for service providers than WiMax

SARASOTA, USA: xG Technology Inc., the developer of smart radio technology that improves the utilization of the nation’s airwaves, has produced a white paper entitled “Stacking xMax Against WiMax IEEE 802.16e.”

Findings of the Company’s white paper confirm that xMax, which recently received an Internet Telephony Magazine 2009 Product of the Year Award, is able to provide a significantly higher level of profitability than WiMax for operators deploying wireless systems.

xG’s white paper compares xMax with WiMax IEEE 802.16e to determine which of the two technologies provides a better return on investment (ROI) for new entrant service providers. The analysis makes use of a detailed mobile service operational model to calculate “Total Lifetime Customer Net Value ($) Per CapEx ($)” metrics for different voice/data revenue mixtures and different market types (e.g. urban, heavy suburban, etc.).

The key findings of the white paper are:

* xMax is capable of returning nearly three times more profit per dollar of CapEx to an operator than WiMax. Even under capacity and coverage assumptions generous to WiMax, new entrant service providers could have the ability to derive ROI that is potentially orders of magnitude better under xMax than WiMax.

* Scalable xMax 902-928 MHz mobile wireless networks are shown to be more profitable across a much wider range of population densities than are 2.5 GHz WiMax mobile wireless networks.

* The profitability advantage of xMax stems partially from the use of unlicensed spectrum and its explicit support for mass-scale mobile voice services, but primarily from the fact that its well-designed radio access network (RAN) architecture better matches the voice/data coverage that an operator is likely to encounter as a new entrant in mature markets.

* For new-entrant operators, the ability to provide mass-scale mobile voice services can result in a more profitable revenue base that provides the financial stability and cash-flow needed to support the increasing demand for broadband data.

“Even under the most conservative scenario, this white paper shows that xMax would be the more profitable wireless technology,” said Chris Whiteley, director of business development for xG Technology. “These results are a real eye-opener as to how cognitive radio technology is set to change the industry landscape. It underscores that xMax is uniquely positioned to reclaim national spectrum that can be used to help offload overtaxed cellular networks and lower the barriers to entry for the delivery of mobile services.”

xMax is a new cellular infrastructure that employs smart radio technology to improve the utilization of the nation’s airwaves—potentially saving consumers substantial money by allowing the delivery of affordable mobile VoIP and broadband services across free spectrum. It represents an innovative solution to reclaiming spectrum that was once considered too crowded and interference-prone to be usable for advanced wireless services.