GGBM News GigaBeam Announces New Business Strategy with Focus on Specific Markets, WiFiber Applications and GigaBeam's Technology
HERNDON, Va.--(BUSINESS WIRE)--GigaBeam Corporation (NASDAQ: GGBM) announces adoption of a new business
strategy to realize the near-term potential of the global market for its
multi-Gigabit-per-second WiFiber®
wireless fiber technology. This strategy encompasses utilizing WiFiber
to be deployed as a cost-effective alternative infrastructure to support
other communications technologies, including wireless solutions such as
WiMax and Wi-Fi. The Company’s sales and
service are now more focused on these infrastructure opportunities which
the Company is pursuing based upon achievements to date with deployments
of its product and the demand that the Company believes is apparent in
the domestic and international market it serves. In the international
market, the Company expects to take advantage of opportunities in those
countries where it has achieved market penetration and where it has
successfully pioneered rule making in the 70 and 80 GHz spectrum for
commercial use. These opportunities include the Middle East and North
African (MENA) and European Community markets.
In order to implement this new strategy, the Company has consolidated
operations, research and development and customer service activities at
its Research Triangle Park location in North Carolina. GigaBeam’s
primary manufacturing facility remains in Sunnyvale, California, while
its corporate headquarters is to be transitioned to North Carolina. The
Company has realigned its staffing to effectively execute this new
strategy.
Lou Slaughter, Chairman and CEO of GigaBeam, stated “We
have identified substantial market opportunities for our WiFiber product
based upon the successful deployments to date, customer applications of
our product and the response from the marketplace. This positive
feedback is driving our new ‘go-to-market’
strategy. This new strategy allows us to take advantage of the
significant potential of our technology to support the build out of
wireless telecommunications infrastructures on a global scale. The
consolidation and refocus of our operating activities enables us to more
cost-effectively support our customers and the implementation of this
strategy.”
He added, “These changes have enabled us to
substantially reduce the level of cash used for recurring operating
expenses of the Company. We expect this new strategy to benefit the
Company financially and positively impact the Company’s
operating results.”
Lou Slaughter continued, “Among our current
domestic efforts in the United States is a project located in a western
city where our customer, a communications service provider, is
installing a city-wide WiFiber infrastructure at significant lower cost
than using terrestrial fiber to provide an equivalent infrastructure.
The customer has already purchased and successfully deployed 11 links
from the Company and is expected to acquire additional links in the near
future to build out their infrastructure. In the MENA region we see
similar opportunities to build out city-wide infrastructures by both
enterprises and government entities. The Company will also continue to
sell to enterprise and government customers which can effectively
utilize the Company’s technology for various
high bandwidth applications, in addition to city-wide infrastructure
build outs. These aforementioned opportunities support our new strategy.”
GigaBeam WiFiber products operate in the 71-76 GHz and 81-86 GHz upper
millimeter wave spectrum bands. This portion of the spectrum has been
authorized by the Federal Communications Commission and the European
Conference of Postal and Telecommunications Administrations (CEPT) for
wireless licensed wireless commercial use. Use of these frequency bands
for commercial use was pioneered by GigaBeam’s
founders.
GigaBeam’s technology, utilizing these large
blocks of contiguous spectrum, enables multi-Gigabit-per-second
communications through use of Gigabit Ethernet and other standard
protocols. The current speed achieved by GigaBeam’s
WiFiber G-1.25 product series is full duplex at one Gigabit-per-second
(equivalent to 647 T1 lines or 1,000 DSL connections) which supports
GigE protocol. GigaBeam previously announced its WiFiber G-2.7 series,
to be released in the first half of 2007, and which will operate at 2.7
Gbps. The protocols to be supported by the G-2.7 product series include
2 x GigE (2 x 1 Gbps); OC-48 / STM-16 (2.488 Gbps); SMPTE 292M (1.485
Gbps) and both 1 and 2 Gbps fiber channel. GigaBeam also plans
deployment of future products capable of 10 Gigabits-per-second
utilizing either the 10 Gigabit Ethernet or OC-192 protocol standards.
GigaBeam’s WiFiber technology is similar to
terrestrial fiber in terms of speed and reliability. WiFiber has a
substantial advantage over terrestrial fiber because WiFiber can be
deployed in a day and costs less to deploy than terrestrial fiber.
Terrestrial fiber can take months to deploy and also require significant
regulatory and environmental approvals prior to installation.
About GigaBeam Corporation
GigaBeam is a provider of high-performance wireless point-to-point
communications access solutions that operate in the licensed 71-76 GHz
and 81-86 GHz radio spectrum bands. GigaBeam equipment operates at
multi-gigabit-per-second speeds. GigaBeam Corporation headquarters is
located at 470 Springpark Place, Suite 900, Herndon, VA 20170. For more
information, visit www.gigabeam.com.
Safe Harbor Statement
Statements in this press release regarding GigaBeam’s
products, services, capabilities, performance, opportunities,
development and business outlook that are forward-looking involve and
are subject to known and unknown risks, uncertainties and other factors,
some of which are beyond GigaBeam’s control
and difficult to predict, and could cause actual results to differ
materially from these anticipated, expressed or forecasted in the
forward-looking statements.Such risks and uncertainties may
include, but are not limited to: lack of operating history,
transitioning from a development Company to an operating Company,
difficulties in distinguishing GigaBeam’s
products and services, ability to manufacture and deploy GigaBeam’s
products, lack of or delay in market acceptance and fluctuations in
customer demand, dependence on a limited number of significant
customers, reliance on third party vendors and strategic partners,
availability of raw materials, subassemblies and components, ability to
meet future capital requirements on acceptable terms, continuing
uncertainty in the telecommunications industry and the global economy,
intense competition in the telecommunications equipment industry and
resulting impact on pricing and general financial performance,
compliance with federal and state regulatory requirements, timing,
availability and success of new technology and product introductions and
the other factors discussed in GigaBeam’s
filings with the Securities and Exchange Commission.
