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BT takes on councils with lasers

by Chris Lee in Budapest

20 Nov 2001

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mmO2, BT's mobile division, is in talks with laser broadband company, LaserBit, to provide last-mile broadband backbone in urban areas as an alternative to third-generation (3G) masts.

Local councils are becoming increasingly concerned about radiation omissions in built-up areas from 3G masts, and some, including Kent and Harrow, have banned them.

Network operator Orange has been particularly affected and others are more likely to suffer if bans continue.

Free space optical (FSO) technology is seen as an alternative to radio masts as a means of data transmission across short ranges - in LaserBit's case, up to five kilometres.

Bela Gyoeri, chief executive of LaserBit, confirmed that the two companies were in talks with both BT and Hull's Kingston Communications to provide last-mile broadband. Using a laser to transmit data does not require a licence as it does not operate in the radio spectrum.

"Microwaves provide interference and present you with more security vulnerabilities, unlike laser," added Gyoeri.

LaserBit said that modern FSO technology can deliver transmission speeds ranging from 1.544Mbps to 155Mbps, including 10Mbps and 100Mbps Ethernet Protocol.

Analysts were not surprised that BT should look to FSO technology for last-mile backbone, and said that provided there was line-of-sight, the concept could work to connect masts to base stations.

"FSO technology has rapidly improved in recent years due mainly to more sensible selection of wavelengths in which to operate," said Peter Aknay, senior technician for telecoms research group, Analysys.

"The market may still be immature, but the technology is ready and just needs some brave first-movers," he said.

Analysts have traditionally doubted the technology's ability to operate in certain weather conditions, such as fog, heavy rain and snow, and some still remain sceptical.

"Weather conditions in the UK are not good for free space optical broadband," said Tim Johnson, principle analyst at market watcher Ovum. "Mist and rain will refract light beams and cause downtime."

Johnson said he could see FSO technology being used by 3G operators, but as a complement to fibre in the backhaul, the link back to the base station.

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