Aperto Networks Enters Multi-Service Broadband Wireless Access Market

Company Blends New Technology with Practical, Scalable Systems for Rapid Delivery, Rapid Payback  

Milpitas, Calif., (July 10, 2000) – Aperto Networks today announced its entry into the multi-service fixed broadband wireless access market. The company’s technologies and business model address service provider and end user needs for rapid network deployment, network and service scalability, ease of installation and cost-effectiveness. Aperto’s capabilities in the sub-11GHz wireless spectrum will support both carrier infrastructure and end-user service platforms.  

Market Needs
Last mile high-speed access has significantly lagged the LAN and WAN backbone in terms of bandwidth capacity and affordability, creating a choke point for end-to-end broadband networks. Even with widespread cable modem and DSL deployment, wireline solutions do not ensure scalable, ubiquitous broadband access, they cannot affordably adapt to increasing bandwidth demand, and they suffer from lengthy delivery intervals. Fiber connections remain cost prohibitive for mass-market access and distribution.  

A 1998 FCC Report and Order opening up Multichannel Multipoint Distribution Service (MMDS) for flexible two-way use improved the attractiveness of wireless technology to bypass the local loop. According to a recent Dain Rauscher Wessels report, carriers have spent close to $3 billion in the acquisition of U.S. MMDS licenses to directly access millions of customers and complement existing wireline infrastructures.  

We founded Aperto Networks with a simple, straightforward strategy in mind – to provide mass-scale wireless broadband solutions that extend wireline technology for both Internet and telephony applications,” said Aperto president and CEO Reza Ahy. “Ideally, we want to make broadband fixed wireless as ubiquitous in the near future as cellular service is today. The Aperto team has developed an end-to-end approach to deliver on this strategy, enabling multi-service delivery for line-of-sight, obstructed and non-line-of-sight conditions, granular quality of service levels, and the rapid rollout that carriers must have to support millions of subscribers.”  

According to the Strategis Group, global service revenues for fixed broadband wireless are projected to be $16.3 billion by 2004, a compound annual growth rate of 140% over 1999. Key to the growth are breakthroughs in the ease, affordability and manageability of bandwidth in new wireless network technology.  

In fact, fixed wireless access can significantly boost broadband service delivery, filling the gap between demand for broadband wireline performance and the supply shortfall due to poor copper quality or exhausted local loop, incompatible network elements, and excessive distances between subscribers and serving central offices. This gap, estimated by some to be between 30% and 60% of DSL or cable modem prospects, could be reduced by as much as half through deployment of cost-effective broadband wireless access.  

“We see critical inflection points occurring already in the broadband wireless market,” stated Jim Moeller, vice president, wireless communications analyst with Dain Rauscher Wessels. “Burgeoning demand, powerful and deployable technologies, and the declaration of major carrier rollout plans bode well for strong growth. Aperto is well-differentiated to serve this market, with its unique end-to-end network approach and its focus on both voice and data service delivery. In addition, the company supports a protocol-agnostic architecture that works well for legacy network integration. These capabilities may contribute to significant market power and competitive advantage in the company’s approach.”  

The Aperto Model
Aperto is focused on the development of standards-based wireless access equipment for global markets in the 2.5 GHz MMDS, 3.5 GHz and 5GHz frequency bands. Operating in three different bands, Aperto’s Media Access Control layer offers flexible duplexing (TDD or FDD) that will meet the stringent requirements, regulations and standards of service providers worldwide, with a single, integrated product family. Since its inception, Aperto Networks has worked to align with the emerging IEEE 802.16 standard, the European ETSI, and with Japanese partners to ensure global interoperability.  

Further details on Aperto’s architecture and patent-pending technologies may be found under separate announcements released today on Aperto’s architecture and the company’s newly-public relationship with TollBridge Technologies.  

"Aperto’s strategy to address broadband wireless access demand is impressive as it relates to meeting the needs of the most stringent carriers," said Paul Kellett, senior analyst of broadband access at Pioneer Consulting, and author of an upcoming report forecasting broadband wireless equipment sales and service revenue in the next ten years. "Aperto’s solution provides maximum flexibility in satisfying the needs of individual subscribers and affords operators maximum use of available bandwidth. Offering such advanced, innovative features, players like Aperto will have a major impact on the willingness of carriers to adopt broadband wireless access."  

Aperto Networks is being introduced to the market at the Wireless Communications Association (WCA) annual conference in New Orleans, LA, July 10-14, 2000. Company representatives and further information about the Aperto Networks corporate direction and technical architecture will be on hand at booth 621.


About Aperto Networks

Aperto Networks is a developer of multi-service fixed broadband wireless access systems. The company was founded to provide a breakthrough solution to one of today’s critical network bottlenecks – last-mile broadband access. With practical, scalable systems and patent-pending technology that support new wireless builds and complement existing wireline broadband access technology, Aperto addresses service provider needs for rapid network deployment, multi-service scalability, ease of installation and cost-effectiveness. Aperto will dramatically shorten the lengthy provisioning cycles of broadband services by enabling rapid service provisioning across dense urban to suburban locations. Investors in Aperto include Alliance Ventures, Tyco Ventures, Ridgewood Capital, Satwik Ventures, DMC Stratex Networks, Oki Electric Industry Company, Mitsubishi International Corporation and Redwood Ventures. For more information on Aperto Networks, go to