There are many parts of the U.S that still lack the technological foundations needed for broadband Internet access. BusinessWeek reported that the federal government has offered stimulus money to telco and cable companies interested in expanding their broadband Internet access to rural communities.

A number of telco and cable companies, however, have refused to take the subsidies offer from the government, according to the report. These companies do not find it a profitable proposition to serve the remote communities, even after receiving money from the government.

Commenting on this contentious issue, Rick Rotondo, vice president for marketing at xG Technology (News - Alert), noted in a statement that rural broadband – and the lack of access to it – has been an issue facing the country for many years.

The debate on the issue has often been positioned as one of private industry vs. government build-out.

Rotondo believes there is a more fundamental aspect to this than which entity is the right one to take on the risk and potential rewards.

The financial question is at the heart of the debate, he said, and that whether or not economics, even with substantial government monies, justify the capital outlay required to deploy and operate rural broadband networks. 

In addition, the needs of those missing out on the digital revolution should be the topic at the center of the discussion, according to Rotondo.

Using traditional network approaches, the economics are difficult to justify for private industries, which even with government subsidies, must deliver an acceptable ROI.

Similarly, government agencies face tight budgets and cannot pursue projects that are not cost effective and provide the most return for their constituents, he said.

Rotondo has suggested new approaches that leverage game-changing technical advances, and that have the potential to change the economics and redefine the debate in a way that both industry and government benefit from delivering broadband services to neglected rural markets.

xG Technology's xMax wireless broadband solution delivers this new game-changing technology in a cost-effective and simple-to-deploy solution. “Using freely available, abundant and zero-cost unlicensed frequencies, broadband services can be delivered without the cost of trenching, stringing cable over vast distances, or purchasing expensive licensed frequencies,” he said.

xG Technology is a developer of wireless communication technologies. The company's patented intellectual property portfolio includes a wide array of applications. In June, the company announced the addition of six new patents.

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