xG Technology Applauds Relaxation of FCC TV White Spaces Rules

FCC Vote Creates New “Seven Billion Dollar Market” and Wide-Ranging Opportunities for the Company’s xMax Carrier-Class Cognitive Radio Solution

SARASOTA, Fla.--(BUSINESS WIRE)-- xG Technology, Inc. (LSE-AIM: XGT, “xG” or the “Company”), the developer of a broad portfolio of wired and wireless communication technologies, including cognitive radio networks, welcomes the FCC’s ruling of relaxed TV white spaces rules. This additional spectrum, coupled with increasingly market-friendly requirements, opens up vast new opportunities for xG’s innovative wireless network solutions. Communications providers that lack sufficient licensed spectrum can now potentially leverage hundreds of megahertz of new frequencies for free. Cable companies, rural and independent telcos, government and public safety agencies, and incumbent mobile network operators can all benefit from the new capacity and services that are possible with xG’s cognitive cellular networks operating in TV white spaces.

TV white spaces are the channels left over from the transition from analog to digital TV, and can carry high-capacity wireless signals over large distances. In its meeting today, the FCC approved new rules for the deployment and operation of radio equipment in the newly available TV white spaces frequencies. In addition to eliminating the requirement that radios must first sense for TV broadcast signals, the Commission also approved rules to simplify co-existence with wireless microphones. These changes reduce the cost and increase the effective coverage possible from a white spaces antenna.

“With the revised FCC rules, the white spaces are an even more exciting opportunity than before, and one that could change the wireless game to the benefits of users everywhere,” said Craig Mathias, a principal with the wireless and mobile advisory firm Farpoint Group. “I’m particularly excited about the application of cognitive radio, which could have benefits far beyond the white spaces spectrum, and the potential for new voice and data services addressing not just traditional markets, but also underserved rural areas, rapid-deployment and emergency response, smart grid, and many more.”

This clears the way for innovative technologies such as xMax to offer new cost-effective fixed and mobile services to a broad range of markets, including consumer, enterprise, utility, telco, cable, public safety and government network operators. During the meeting, FCC Chairman Julius Genachowski quoted a Microsoft study that projects that white spaces use could generate $7 billion a year in new services and application value.

Additionally, the lack of uniform availability of white spaces across the country underscores another advantage of xMax cognitive radios: their ability to operate across multiple frequency bands allows them to supplement TV white spaces by seamlessly incorporating other readily available frequencies, such as the unlicensed 900MHz or 2.4GHz bands. By capitalizing on the xMax system’s ability to span licensed and unlicensed spectrum beyond the TV band frequencies, xG plans to offer its customers greater flexibility and bandwidth than white spaces alone can offer, via a game-changing “Enhanced White Spaces” xMax solution.

“By applying cognitive radio technology to white spaces, we can intelligently combine them and other licensed and unlicensed bands to increase total system capacity and reliability,” said Joe Bobier, xG Technology’s CTO. “Cognitive radios can also better utilize white spaces - we can program xMax to select channels with the least congestion, longest range, most robust connection or a combination of these factors. xMax users will get the most reliability and capacity possible in any situation.”

For example, in areas where TV white spaces are not available, xMax users could automatically switch to channels in the unlicensed 900 MHz band to ensure uninterrupted connectivity and coverage. The xMax system can also switch to these frequencies when TV white spaces channels become congested or experience high interference levels.

xG is also uniquely positioned to benefit from the rules that were not changed, most notably the requirement that white spaces radios must still operate under FCC Part 15 (unlicensed) rules. This limits the transmission power of white spaces radios to a maximum of four watts, which is significantly lower than existing cellular, TV and other wireless transmitters. However, xG has demonstrated that its xMax system, certified and optimized to operate using Part 15 rules, can offer carrier-grade reliability and services at ranges exceeding two miles using frequencies similar to white spaces.

Countries around the world are also working to make TV white spaces available. The UK, Canada, Brazil and others are talking about proposed schedules, as well as requests for comments, for putting these valuable frequencies to work.

Companies interested in trialing xMax mobile end-to-end IP solutions, or partnering with xG are encouraged to contact Chris Whiteley, Director of Business Development at chris.whiteley@xgtechnology.com.

ABOUT XG TECHNOLOGY

xG Technology is a leading developer of innovative and disruptive communications technologies for both wired and wireless networks. Its extensive patented intellectual property portfolio covers a broad range of applications including cognitive radio networks. The Company has commercialized some of these technologies to create xMax, the world’s first carrier-class cognitive radio network.

xMax’s standards-based IP architecture minimizes network deployment, management and operational costs while simplifying the delivery of profitable fixed and mobile services. Using field-proven cognitive radio technology, xMax enables the delivery of these revenue-generating mobile services in both licensed and unlicensed bands. In its initial commercial offering, the xMax cognitive radio system enables carriers and other operators to profitably monetize free unlicensed spectrum in the 900MHz ISM band. xG Technology offers turnkey xMax network solutions including handsets, base stations, mobile switching centers, network management systems, deployment tools, and customer support.

To demonstrate its game-changing products and technologies, xG has deployed a 30 square mile xMax network in Fort Lauderdale, Florida to showcase its cognitive radio, mobile VoIP, and dynamic interference mitigation capabilities. Based in Florida, United States, xG Technology has over 50 US and more than 100 international patents and pending patent applications. For more information, please visit www.xgtechnology.com.

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KEYWORDS:   United States  North America  Florida

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