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by Michael Kenward
Originally Published: July 16 2001 10:25GMT
By: The Financial Times


Even in these days of market gloom for telecoms, there are some bright spots. Indeed, some see the downturn as good news for the spread of optical wireless, or free-space lasers. In this technology, a laser beam sends a signal through the air, rather than along a glass fibre, to a receiver a short distance away.

More than 90 per cent of large buildings in North America are not connected to the optical telecoms network. A frenzy of fibre-laying at the peak of the boom also means that more than 90 per cent of the installed capacity in that fibre optic "backbone" lies idle. However, an inexpensive and easily installed way of bringing the two together could give operators an easy way to add customers quickly.

Free-space lasers are one option. They do not even need a licence to operate, reducing the cost and time it takes to bring a system online. A growing number of companies are developing and supplying systems to plug this gap in the chain. There are already hundreds of laser links in various applications around the world.

The attributes of free-space lasers, also known as optical wireless, are such that the technology can also work inside buildings, connecting users to a local network. Lasers can also operate between buildings on a campus, where the aim is to join the two in a local network rather than to plug into the long-distance backbone. Optical wireless is also making inroads into mobile networks, where it connects base stations to the fibre backbone, in what is known as the "back-haul link".

Optical wireless is simplicity itself. It is the modern equivalent of the beacon bonfire or a signal lamp. Connect a laser transceiver (transmitter-receiver) to a network, aim the device at a transceiver in another building. The transceiver at either end just plugs into the local network hardware. Radio links can achieve the same effect, but they often require a licence for the requisite frequency and are more susceptible to determined eavesdroppers and electromagnetic interference. Some of the preliminary R&D on free-space lasers happened at the Martlesham Laboratory of British Telecommunications in the early 1990s. David Heatley, head of research for the emerging technologies laboratory at BTexact Technologies, the telecoms company's R&D operation, says BT decided to look at free-space links partly because it wanted a solution to the problem of "digger man". If an excavator slices through an optical cable, the operator could install a laser link as a temporary replacement.

Off-the-shelf technology
Dr Heatley and his team at Martlesham in Suffolk decided to work at the same wavelength as conventional fibre optic links - 1,550 nanometres (nm) in the near-infrared region of the spectrum. This wavelength did put up the cost of the lasers in comparison with those available for the visible part of the optical spectrum, but - on the benefit side - the research team could control lasers with off-the-shelf technology developed for processing the signals carried along fibre links. Another advantage of working at 1,550nm is that it is safer on the eye. Lasers are allowed to operate at higher power in that part of the spectrum. This makes it easier to produce transmitters that can deliver enough power over longer distances. The BT research team put together a system that came very close to the performance of an optical fibre system. But while a fibre can carry light for 100km or more before the signal starts to fade away, in air you are doing well to communicate across much more than a few kilometres.

Experts in atmospherics
Atmospheric conditions played a larger part than the BT team had anticipated. "It did surprise us at the time how much influence atmospherics do have," says Dr Heatley.

As a part of the project, BT, together with Imperial College and University College, two parts of London University, set up a 4km link between the two colleges.

The academic research team became experts in atmospherics, says Dr Heatley. At the end of the project they were in a position to relate weather data to the performance of the optical links.

This research data was invaluable a few years later when Theresa Carbonneau approached Martlesham for a licence to exploit BT's work on free-space laser links. Ms Carbonneau went on to set up fSONA (see separate report on the web: www.ft.com/fttelecoms), one of a dozen or so companies that are competing to supply optical wireless systems.

Of all the unlicensed wireless technologies, free-space lasers offer the greatest speed, up to 155 megabits per second (Mbps), albeit over shorter distances than some options. Currently, lasers work over ranges of up to around 2km.

Ms Carbonneau is confident that free-space links can offer 99.9 per cent reliability. This is perfectly acceptable, she insists, "particularly to people who have no alternative". Dr Heatley of BTexact may have started his research in search of a system that could plug temporary gaps in an optical network, but he now sees this as a minor application. On the other hand, there is a market for optical links that can be put in place quickly to create temporary connections.

Indeed, as a part of BT's experiments, the researchers installed a laser link at the Silverstone racing circuit. This allowed Jackie Stewart's Formula 1 team to communicate between its various locations on the race track.

The Benetton Formula 1 team is a more recent recruit to laser wireless. The team makes use of a SkyNet 100Mbps system supplied by the British company PAV Data Systems. PAV, based in Windermere, has also supplied systems for mobile operators to connect base stations to backbone telecommunications networks.

Richard Redgrave, marketing director of PAV, is most enthusiastic about the rapid rise in laser links in the mobile sector. "PAV has the largest installed base worldwide in the cellular area," he boasts, with systems in more than 40 countries. The award-winning company exports more than 75 per cent of its output.

In Cairo alone, says Mr Redgrave, more than 500 of PAV's systems connect cellular base stations to the network. Lasers, he adds, "really have become core to the network roll-out strategy".

The ability to install laser links without a licence allows rapid deployment of base stations. Mr Redgrave cites the example of an operator that envisaged buying a small number of lasers to connect new base stations to the network. It would then replace the lasers with a landline or a microwave connection. When it saw the low cost and reliability of the laser link -a laser can pay for itself within six weeks - the operator abandoned this strategy. Lasers are now a permanent part of its networks.

Last month, PAV announced new products aimed at operators of 3G networks in metropolitan areas. "We have developed a solution to match the requirement for increased bandwidth (34Mbps) across distances of up to 2km," says Mr Redgrave. "This is ideal for metropolitan and urban environments, where cell sizes are relatively small and radio-based solutions can cause interference and pollution problems."

The growing demand for bandwidth, and the need to find users for all those fibres and cellular networks, explains why some people are relatively upbeat in these days of gloom in telecoms. Ms Carbonneau, for example, believes that the slowdown in the sector could benefit optical wireless as network operators look for inexpensive ways to increase their customer base.

Jim Slaby, an analyst with Giga Information Group, a market research company, agrees that optical wireless could be "a little less susceptible to the downturn". He points out that these systems are usually deployed where there are few alternatives. "They are doing it because they just don't have many choices," he adds.

Small companies could be particularly open to the technology, says Mr Slaby. Large businesses will always be able to find someone to wire them up. Small companies, on the other hand "are pretty much ignored". Mr Slaby expects the business to grow rapidly. He estimates that sales could reach several hundred million dollars this year, rising by an order of magnitude within five years.