TenXc Wireless gets boost from CITO for proof of concept of antenna technology
TenXc Wireless will use a $100,000-loan from Communications and Information
Technology Ontario (CITO) to prove the company's antenna intelligence software
can significantly increase network capacity for mobile wireless operators.
The company, which is the first recipient to receive funding under CITO's
new Accelerator Investment Program, conducted proof-of-concept tests
last month and is now demonstrating the product for existing and future customers.
The Ottawa-based start-up is excited to have made the grade. "This is
a new program for CITO and we've had a good long history with them and we
consider it a major achievement to be included and to be their first company
to launch this new program with," says Ross Ernst, TenXc's VP marketing
and communications.
The company has developed radio signal processing algorithms that, when combined
with some antenna innovations, can substantially increase the capacity that
existing wireless networks can carry. TenXc's technology is designed to help
wireless operators deal with increasing capacity constraints on existing networks.
The current state of the market shows that wireless operators have capacity
issues today, Ernst says, adding that TenXc can help carriers solve the problem.
"They have a substantial investment in the network in terms of their
existing technology base so in order to assist them solve the problems with
their current generation of technologies and deployed equipment, we are designing
our first product solutions orientated such that they can deploy it as a cellular
enhancement to existing networks without having to change out the entire network
infrastructure to take advantage of it," he tells Report on Wireless.
TenXc's technology also has an advantage over older technology because it's
an all-digital system, Ernst says. "Current technology uses passive antennas
and they don't use algorithms to do the pre-processing before they put the
signal into the network. So this would be quite an innovation. There have
been smart antennas deployed in networks before, but those are based on an
analog architecture whereas ours takes an all-digital approach, which opens
opportunities in terms of product possibilities and integration ultimately
and to future base station design.
"There's two components, but the real power of the company and the core
technology lies in the smarts or the intelligence within the software and
the signal processing," he adds.
TenXc has had discussions with at least three wireless operators interested
in the technology. One of them considers using the technology as a competitive
advantage, and as such has put a lock on releasing its identity. The company
has also approached equipment manufacturers, but interest from this segment
has been less committal. Ernst would not reveal the identities of the other
companies involved, citing confidentiality provisions.
To date, TenXc has received about $2 million in financing from both seed investors
and the venture capital community. It received $750,000 in seed financing
when the company was formed in the spring of 2002. Venture Coaches, which
has invested in other wireless companies such as Spotwave Wireless, and the
Business Development Bank of Canada are the two primary investors. Existing
cash on hand should take the company through to Series A funding, which is
slated to take place in the spring of 2004.
The company will work on refining its product and testing it for its customers
over the next several months until the Series A financing next spring. Ernst
says that 12-15 months following next spring's anticipated financing, the
company should be ready to head into product trials with customers. If everything
falls into place, TenXc will commercially introduce its smart antenna product
by the summer of 2005.