XO Unveils Wireless Broadband Subsidiary

XO Holdings Inc. is back in the fixed wireless game with a new subsidiary, Nextlink Wireless Inc. The broadband wireless service provider, formed when XO spun out its wireline business last November, targets businesses, government agencies and other operators with “middle-mile” services, such as cellular backhaul and metro transport connectivity. The news brings the company full circle: XO began life as wireless provider NEXTLINK Communications Inc.

For locations up to seven miles and in line-of-sight of a Nextlink wireless hub, Nextlink provides wireless broadband services like metro Ethernet and dedicated Internet access, with speeds from 1.544mbps (T1) up to 622mbps (OC12), according to the company. Nextlink will be a carrier’s carrier, initially for mobile operators looking for tower backhaul and providing DS3 replacement to CLECs and ILECs.

It also will target businesses, providing LAN-to-LAN and building-to-building connectivity, and it offers government agencies redundancy and diversity routes, along with connectivity for high-bandwidth applications.

Nextlink first will offer service in Dallas, Los Angeles, Miami, San Diego, Tampa, Fla., and Washington, D.C., using its local multipoint distribution system (LMDS) holdings, with plans to expand coverage to its entire footprint within the next two years. The company is among the largest holders of spectrum licenses in the 28GHz to 31GHz range, covering more than 70 major metropolitan markets in the United States.

XO Holdings’ wireline company, XO Communications Inc., will act as a distribution channel for the business market, allowing the two to offer integrated bundles of wireless and wireline services, leveraging XO’s national fiber backbone.

Meanwhile, last-mile services and a network expansion (potentially using unlicensed WiMAX) are on the road map, according to Nextlink President Tom Cady.

“We see strong potential for broadband fixed wireless solutions in the wireless marketplace,” says Yankee Group Vice President Philip Marshall.