US firms test high-speed radio links

Wireless radio transmission is the way forward for Internet service providers (ISPs), according to Winstar Communications and Teligent.

The US-based companies claim they can deliver data at 45Mbps - three times faster than cable connections - providing an alternative to fibre-optic links.

Teligent claims its point-to-multipoint systems use a central radio that can receive voice, video and data, and that, "Information can be sent at fibre-optic speeds while maintaining security and clarity".

Small businesses in Los Angeles will be the first to test the claims as they get wireless Internet access from Teligent at the end of this week.

Adam Daum, analyst at Inteco, said: "The main selling point is that it is cheaper to install, and provides access to high bandwidth in areas where fibre-optic cabling is not installed." Small businesses are most likely to go for it, he added.

"If in an area where no fibre-optic cabling is available then it is a very good offering. However, the companies that have need for high bandwidth - such as media and advertising companies - will all be geographically clustered and so will have fibre-optic cabling as an option," said Daum. He added that in this situation, companies would be more likely to choose fibre-optic transmission.