xG Technology (News - Alert), a Florida-based developer of wireless communications technologies, has bagged an order worth $75 million from Treco International to supply 1,000 next generation BSN250 base stations.

 

The order is significant as the innovative and patented innovative wireless communications technologies from xG Technologies has the potential to reduce capital investment and running costs of wireless voice and data communications services.

 

Initial deliveries of the base stations are expected during the last quarter of 2008, while majority of the 1,000 base stations will be completed during 2009.

 

Treco International, which is planning to work with xG Technologies to deploy the base stations in the United States, can opt for an additional 4,000 base stations, so the size of the contract could go up to $300 million.

 

Treco will work with xG to deploy base stations in markets, which either have already been or will be sold to regional carriers/operators. The regional carriers will then pay an appropriate lease fee to Treco. 

 

“This contract with Treco brings our ambition of delivering the world's first mobile voice and text service over the Internet a significant step closer,” said Rick Mooers (News - Alert), chairman and CEO of xG Technology, in a media statement. “We firmly believe that our patented and patent-pending technology will revolutionize the way that consumers and business pay for their telecom services.”

 

The BSN250 base stations will utilize xG's xMax technology, a mobile Voice over Internet Protocol (VoIP) base station and handset product line. In conjunction with the company's TX60 handset, xMax will deliver the world's first mobile VoIP service. The service will be kicked off in U.S. in the fourth quarter of 2008.

 

The xMax system provides an extended range of operation and is likely to offer superior handset battery performance. These products are intended for use by regional carriers such as Internet service providers, competitive local exchange carriers and entrepreneurial parties seeking to deliver mobile Internet Protocol voice and data services directly to consumers without using the incumbent circuit switched or coaxial cable networks, the company said.