A case study: Central Texas Communications takes on LMDS.

For years, broadband wireless has been hyped as the solution for rural markets. Logically speaking, wireless is the ideal method to serve the local loop in areas where customers are scattered and landline build-outs are expensive. However, small independent carriers have not been able to deploy fixed wireless as easily as the industry had hoped, for a variety of reasons. Hurdles faced by rural carriers have ranged from difficulty accessing spectrum to high equipment costs. Given these hindrances, the rural deployment of local multipoint distribution service (LMDS) by Goldthwaite-based Central Texas Communications (CTC) is all the more extraordinary.

Often called wireless fiber, LMDS has been widely deployed in urban areas by companies such as the bankrupt Teilgent and the now defunct WinStar Communications. But while LMDS is ideal for linking corporate campuses and local branch offices with short-range, rooftop-to-rooftop transmissions, the technology has some serious drawbacks for rural applications.

Because higher frequencies do not travel as far, LMDS, which operates in the frequencies near 30 GHz, generally is a less desirable solution for non-urban markets than multichannel multipoint distribution service (MMDS). However, rural carriers have found it immensely difficult to gain access to MMDS in the 2.1 GHz - 2.7 GHz frequencies because larger carriers, including Sprint and WorldCom, have dominated spectrum auctions.

Building Wireless Foundations

In November 2001, Central Texas Communications, a wholly owned subsidiary of the San Angelo-based Central Texas Telephone Cooperative, announced the successful completion of the initial phase of its LMDS rollout in San Angelo and Goldthwaite. The first successful commercial launch in a rural area, CTC's LMDS project developed over many years, the initial stages beginning in 1998 with the acquisition of spectrum.

A regional full-service telecommunications carrier, CTC acquired 28 GHz and 31 GHz licenses that covered 19 counties throughout central Texas. The company deployed LMDS in 1999 using equipment from Newbridge Networks, a company acquired by Alcatel in 2000. The system suffered from capacity issues, and CTC eventually decided to seek out a new solution. After an extensive search, CTC selected the LMDS solution of San Diego-based Ensemble Communications and began building out its network in July 2001.

CTC currently uses its LMDS system to deliver integrated data and voice services exclusively to business customers in San Angelo and Goldthwaite. Services include Internet and voice simultaneously over one line, and data transfers with speeds from 128 kbps to 10 Mbps. Using Ensemble's point-to-multipoint fiberless system, CTC, which competes directly with Verizon's digital subscriber line (DSL) service in select areas, can cover 85% of its San Angelo service area with just four cell sites, each with an inner radius of four miles and an outer radius of three miles.

"CTC's LMDS network is built on Ensemble Communications' fiberless platform, which consists of the Fiberless 16000 Series base station and the associated radio antenna units, the Fiberless 300 Series access multiplexer and radio unit and the Fiberless Management System," said Larry Pechacek, Central Texas' chief technology officer. "We searched long and hard for an LMDS solution, and we are very pleased with the Ensemble result."

Glen Roberts, CTC's sales representative, added that the company has been able to keep its build-out costs down and then pass the savings along to its customers, beating Verizon's price for voice service by 17%.

Fair Weather Technology

They say the key to making money in real estate is location, location, location. CTC is proving that geography can play a critical role in the rural deployment of broadband wireless technologies as well. The company's unique location-advantage stems from the climate and terrain of its service area, which has enabled CTC to avoid some of the most common obstacles faced by fixed wireless deployments.

Specifically, San Angelo's dry weather and flat landscape all but eliminate LMDS's notorious line-of-sight and rain-fade issues. While rain generally has a negative affect on all fixed wireless technologies, LMDS systems are particularly vulnerable, since their high-frequency transmissions are not as strong. As such, average yearly rainfall could make or break a fixed wireless business model.

Fortunately for CTC, Mother Nature delivers rain to its service areas only a few days each year. For instance, San Angelo gets on average 20 inches of rain per year, and that comes in quick bursts.

Central Texas' negligible rainfall aids in minimizing interference, so while the signal may suffer during rain showers, precipitation is so infrequent that it does not pose a serious threat to the quality of service.

Similarly, the sparse vegetation and flat terrain of Texas' central region make for optimal line-of-sight. Because LMDS transmissions are based on line-of-sight, the space between the antenna on the tower and the receiver at the customer's premises must be unobstructed. Trees, hills and tall buildings are the most common forms of interference with a fixed wireless system. Though many broadband wireless equipment manufacturers are promising second-generation equipment that will mitigate line-of-sight issues, many in the industry say such innovations are many years away.

Despite these drawbacks to LMDS in rural areas, including low subscriber density and the increased distances between customers and base stations, CTC has found there is a hometown advantage to its fixed wireless deployment. While countless other fixed wireless operators across the country have struggled to gain access to prime urban rooftop locations for the placement of their antennas, CTC has its choice of antenna sites in and around San Angelo.

Thus far, the company has been able to avoid rooftop access disputes because local business owners generally view LMDS as a type of utility and do not attempt to block or charge for its entry onto their property. In fact, CTC reports that landlords actually welcome broadband wireless onto their properties and do not insist on leasing rooftop space.

In its first phase of deployment alone, CTC signed up more than 40 business customers on its LMDS system. The company recognizes a need for quality broadband services in its markets, and expects that its customer base will increase significantly once a full marketing effort is in place.

An Ongoing Endeavor

As CTC moves forward with its LMDS deployment, the kinks are being ironed out and the process of getting new customers up and running is smoother. For instance, even though most companies choose only to port their main numbers, local number portability originally presented a problem to the CTC team.

According to sales representative Roberts, the company has since perfected its local number portability technique, giving it a serious advantage over its competition. "Back when we started, it took us three weeks to port a local number. Now we are down to about 20 minutes," he said.

CTC is at the forefront of LMDS deployments in rural markets, but according to the company's leader, a big part of its success is owed to its equipment provider. "Ensemble's fiberless solution has worked very well for us," said Delbert Wilson, Central Texas' chief executive officer and general manager, "and we look forward to their support in our future LMDS rollouts in the cities of Brownwood and Brady, Texas, over the next two years."

Ensemble Communications President and CEO Dave Twyver recognized CTC's innovation, saying, "At a time when the U.S. LMDS market is in a state of turmoil, CTC exemplifies the new generation of competitive carriers that will succeed by deploying scalable, high-capacity and lower-cost networks--market by market and customer by customer."

Athena Platis is wireless industry analyst for NTCA. She can be reached at [e-mail].