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By Corey Grice
Originally Published: February 21st, 2001
By: C|Net.com
Although the technology is invisible, one thing is clear
about laser-based communications networks: They are closer
than ever to becoming a reality.
For months, communications carriers and equipment makers
have tested new technologies, known as "free-space" lasers
or sometimes "optical wireless," to deliver high-speed
network connections to business customers. Until recently
the technology has been relegated to white board theories,
research and development labs and trial projects.
Now start-ups Terabeam, a Seattle-based laser service
provider, and FSONA Communications, a laser equipment maker,
are set to announce for the first time the commercial
availability of their products and services within the next
week. "It's becoming apparent that this stuff is ready for
primetime," said Jeff Kagan, an independent Atlanta-based
communications industry analyst. "Now it's time for the
pressure test by bringing it to market and signing up
customers and seeing if it works.
"I can't imagine it's going to be a flawless rollout. Every
new technology has its problems," Kagan said. "(But) if it
works, it's poised to be a huge hit."
Using invisible lasers that are harmless to the human eye,
the technology allows high-speed Internet access and
corporate network connections to be beamed to business
customers through an office window. Laser boosters tout the
technology as faster than competing wireless systems and
cheaper than direct fiber-optic connections, which require
digging up city streets.
The lasers aim to solve a significant problem facing the
communications industry. Massive high-capacity nationwide
networks are being completed, but the networks in
metropolitan areas are only just beginning to be built and
upgraded. Therefore, business customers often must wait
months for a connection to provide them with Internet access
or a link to a remote office.
But the laser technology is not a sure-fire hit. For one, it
is susceptible to outages from thick fog, which can
interfere with a laser's path and could limit its
reliability. And analysts say the laser sector will face
challenges such as a skeptical marketplace and a limited
window of opportunity before competing technologies such as
fixed wireless and direct fiber-optic connections take hold.
A ready rival
Still, executives believe the lasers are ready to compete
with other data-networking alternatives.
"We feel that we're ready for commercial launch," said
Terabeam Chief Executive Dan Hesse, who walked away from a
potentially large payday from AT&T Wireless to join the
laser company.
Terabeam, which offers data connections at speeds of up to
1gbps (gigabits per second), has begun selling its service
commercially in Seattle in recent weeks and intends to make
a formal marketing splash next month, executives said.
Terabeam has nabbed two local customers--digital advertising
firm Avenue A and Simpson Investment, the investment arm of
a timber and paper company--and will soon activate service
for a third. The company plans to offer service in five
additional U.S. cities by the end of the year, executives
said.
"Other technologies require time-consuming digging and
getting permits. We have the ability to take the optical
signal that comes into the city via big, fat cables and
extend that optical signal right through the window. We see
ourselves as an extension of fiber," Hesse said.
Terabeam's strategy is somewhat unique in that the company
plans to operate both as a service provider and as a laser
equipment maker. The plan is something similar to the early
days at AT&T when the company's role was that of both
carrier and gear manufacturer.
The company has signed a partnership with Lucent
Technologies to jointly develop the equipment. Lucent owns a
30 percent stake in Terabeam Labs, the equipment joint
venture that executives expect to eventually spin off in a
few years.
Separately, FSONA plans to announce details of its first
optical laser products for carriers next week. The company
intends to begin selling its SONAbeam 155-2 product, a laser
system capable of delivering data at speeds of 155mbps
(megabits per second), in April with volume shipments in
May, according to executives. The product will have a range
of about 1.25 miles or 2 kilometers and will retail at
$20,000 for a complete two-way link.
"We're planning to be the first to mass-produce optical
wireless products," said FSONA Chief Technical Officer
Stephen Mecherle. "This product is the inaugural product in
that philosophy."
Spreading wireless
wings
The company, which builds its own products, recently
expanded into a new 30,000-square foot manufacturing
facility in Vancouver from a smaller 10,000-square foot
building.
FSONA also has had some initial talks with potential
overseas manufacturing partners in preparation for future
expansion, executives said. The company is planning a
lower-cost short-range 155mbps version of its laser system
and a system capable of speeds of 622mbps later this year.
Many industry analysts are intrigued by the technology, but
questions remain about its reliability. FSONA estimates its
uptime for longer distances at about 99 percent, which falls
short of communications industry standards, but is capable
of 99.9 percent uptime at shorter ranges. The company also
will offer optional radio-based backup systems to ensure
99.999 percent reliability.
For its part, Terabeam executives believe their network is
capable of delivering 99.9 percent uptime, equivalent to a
total of about one day of outage time per year. The
technology and its reliability was enough to attract the
interest of Lucent.
Similarly, Avenue A is pleased with Terabeam's service thus
far, particularly with how quickly the company activated
service. Comparable connections can take months to provision
from the Baby Bell local phone companies and others such as
WorldCom and Sprint.
"It just takes forever to get circuits (from major service
providers)," said Jamie Marra, chief information officer at
Avenue A and an early Terabeam customer. "If what you're
always telling me is 90 days, I may not go with you next
time."
Indeed, Marra turned to Terabeam instead.
"From the time we said, 'What have you got?' to the time
they installed it was about three weeks," Marra said. "They
got us up quickly, and they gave it to us at a comparable
price to the Baby Bells."
Terabeam and FSONA are not alone in their pursuit of
communications riches. Other laser players include AirFiber,
which signed a partnership with Nortel Networks, Optical
Access and LightPointe Communications.
Strength in numbers
Collectively, the group could pose the biggest threat to
fixed wireless service providers and gigabit-speed Ethernet
service providers, analysts said. Because of the ability to
beam a laser through an office-building window, service
providers will not need to purchase pricey wireless spectrum
or negotiate rooftop access rights with landlords or
commercial property management firms.
"To the extent that (free-space optics) can bypass building
permits, I can see Teligent, Winstar and the other fixed
wireless providers getting nervous about a competitor that
doesn't have to have permits and rooftop rights," said Pat
Brogan, assistant director of research at The Precursor
Group, an independent communications research firm.
Others agree, saying the laser networking technology could
be significant provided these initial uses prove to be
reliable and popular with customers.
"If the technology works as advertised, it could be a home
run," Kagan said. "If it can deliver high speeds and (be
installed) quickly without the hassles of building permits,
it's just too easy."
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