Commercialization:

LightPointe is not the only U.S. provider of FSO equipment, but it does have a product line, a product development plan, customers, partners for field testing, adequate funding, a multinational presence, and a reasonably strong intellectual property position with multiple patents. A direct descendant of BMDO SBIR-sponsored technology is now commercially available for beta trials. This is a 2.5Gb/s capacity FlightSpectrum™ product operating with multibeams and RF out-of-band management at the 1550nm wavelength over a distance of up to 1000 meters. The company anticipates the general release of this product in the first quarter of 2002.

The current Flight™ product line features three models (FlightLite™, FlightPath™, and FlightSpectrum) and two networking tools (FlightManager™ and FlightNavigator™) that enable LightPointe to meet customer demands for communication equipment directly and also indirectly through service providers (who have their own networks and customers). The capacity offered ranges from 10Mb/s up to 1.25Gb/s, operating at 850nm wavelength and lower power. The company is beginning to introduce the higher powered 1550nm wavelength lasers. All of these products operate at layer one and accommodate any protocol, connect to existing network equipment, and require no licensing. Costs vary depending upon transmitter power and management software, but the range runs anywhere from $5,000 to $50,000 per pair of transceiver units. The company is aggressively pricing its FlightLite 1550 product, providing 155Mb/s over a distance of up to 500 meters, for $8000. This compares favorably with the cost of laying fiber-optic cable, which in U.S. metropolitan areas can run between $100,000 to $200,000 per kilometer.

Of the work directly funded by BMDO regarding the use of a RF backup hybrid system, LightPointe has one patent pending.

In the year 2000, Lightpointe obtained more than $1 million in revenue from the sale of FSO products and services. For the year 2001, it anticipates a much higher total revenue figure, but below $10 million. Existing customers include Rockefeller Group Telecommunications Services, Inc.; The Smithsonian Institution; Barclays Bank; Dain Rauscher; and New School University. The company also has established working relationships with more than one dozen carriers located in 31 nations for the purpose of field- and beta- testing new equipment and obtaining lifecycle information on existing equipment.

In September 2000, LightPointe received $12 million in venture capital funding from Sevin Rosen Funds, Ampersand Ventures, and Telecom Partners. In January 2001, LightPointe obtained $6.5 additional working capital and debt financing from Silicon Valley Bank and GATX Ventures Inc. Later in 2001, first-round venture capital firms, Cisco Systems, Inc., and Corning Innovation Ventures invested an additional $33 million.

In general, LightPointe intends to capture a significant share of the international FSO market by emphasizing its ability to meet different customer needs. It can provide a range of capacity and price accordingly; it can supply service quickly (within days); and because its equipment requires no permanent infrastructure, the company can enter into leasing arrangements with service providers. LightPointe’s business strategy relies heavily on the continuing evolution of telecommunications to all-optical configurations (avoiding or eliminating electro-optic conversion).