Jan 1, 2007 12:00 PM

Citing strong demand for exclusive territories for its xMAX mobile voice-over-IP solution, Florida-based xG Technology announced it would increase the upfront fee for future territorial rights beginning in 2008.

To date, xG Technology has contracted with providers to serve 130 communities covering about 57 million in population during 2007, at a cost of $1 for each resident covered, said Tim Ayers, xG Technology spokesman.

“Realistically, that's as much as we can allot in 2007, and the vast majority of that will take place in the second half [of the year],” Ayers said. “We don't want to overcommit to something we can't fulfill.”

Officials for xG Technology have not determined yet what the new upfront territorial fee will be, but the company anticipates “a pretty significant expansion” in 2008, Ayers said. Territorial rights not only provide exclusivity to operators in the mobile VoIP market but also for future data and video services, he said.

Last month, xG Technology became a publicly traded company on the Alternative Investment Market (AIM) of the London Stock Exchange. Utilizing unlicensed 900 MHz spectrum in the U.S., xMAX's low-cost, low-power, long-range characteristics will let operators offer affordable, unlimited calling plans to customers while still realizing a healthy profit, xG Technology CEO Rick Mooers has said.

One operator, Florida-based Far Reach Communications, has announced plans to offer Internet-access and data services in November, when Mooers said xG will have a BlackBerry-like device. In 2008, the Far Reach service offering will expand to IP television.

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