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Mobile Security Industry News

[December 12, 2012]

xG Technology receives new purchase orders from rural telecom providers

Dec 12, 2012 (Datamonitor via COMTEX) -- xG Technology, Inc., a developer of wireless communications technologies, has received new purchase orders, for an estimated $4.11 million, from rural telecommunications providers Electra Telephone Company and Tatum Telephone Company, based in Texas; Choctaw Telephone Company and MoKanDial Telephone Company, based in Kansas; Haxtun Telephone Company, based in Colorado and Walnut Hill Telephone Company, based in Arkansas.

The orders, in aggregate, consist of $2.85 million for xMax cognitive radio networking equipment, including xMax wireless access points, xMSC mobile switching centers and xMod personal hotspots (capable of supporting existing smartphones, tablets and laptops) and an estimated $1.26 million for engineering services and other hardware. Fulfillment of these orders will enable the providers to offer wireless voice and advanced broadband services in their respective regulated telephone market areas.

These purchase orders follow a separate $3.28 million order for xMax broadband network equipment and services received by xG from Florida-based Northeast Florida Telephone Company, Inc. (NEFCOM), a provider of local phone, long distance, Internet services and telephone equipment, which was announced on September 5, 2012 (the NEFCOM contract). The orders arise from a previous xMax trial conducted with Townes Tele-Communications, Inc. (Townes), the parent company of the providers.

Under the terms of the orders and as with the NEFCOM contract, xG will be paid upon the delivery of xMax equipment to the providers and, following FCC certification of the Radio Frequency (RF) devices, which is now expected to take place, in respect of both the NEFCOM contract and the new orders described in this announcement, in the first quarter of 2013, xG said.

George Schmitt, xG non-executive director, said, "We are very pleased to have received new orders from these Providers. This announcement provides further evidence that xMax offers a compelling wireless solution for independent telephone providers in their efforts to bring advanced, cost-effective wireless technology to unserved and underserved areas of the US." http://www.datamonitor.com Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon

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