xMAX network secures Swiss financing

According to the Financial Times, Johan Bohman the secretive Swiss billionaire and shareholder in one of Switzerland’s most exclusive private banks, is behind the investment vehicle, Treco, which will finance XG Technology’s plan to build a mobile network based on xMAX technology. XG’s plan aims to undercut the existing US mobile network operators with its newly invented technology which, in combination with VoIP, makes more efficient use of radio spectrum. As a result, it expects its technology will be cheaper for aspiring mobile operators than existing wide-area wireless technologies such as W-CDMA or WiMAX, as well as offering superior battery performance. The announcement followed on from an earlier deal in late September in which Treco placed an order from XG for 1,000 base stations for USD75 million with the option for an additional 4,000, with an additional value of USD300 million. XG expects to roll out its network next month, initally offering VoIP services in southern Florida, followed by other US states. Data and modem services will become available from early 2009.