Licensed broadband wireless services that provide an alternative to DSL and cable connections could become more widely available in coming months as providers shift from trialing new technology to providing commercial offerings.

Clearwire Technologies recently rolled out broadband wireless in Jacksonville, Fla. Numerous other regional players and even the regional Bell operating companies are testing next-generation broadband wireless equipment to complement and in some cases compete with DSL and cable modems.

Claudia Bacco, an analyst with TeleChoice, says it's too early to tell if next-generation broadband wireless will be a success, but she says the early signs are promising.

"We're all familiar with how the first generation of broadband wireless failed miserably," she says. "Today's generation of equipment has come a long way, but the equipment vendors are facing a lot of skepticism from the operators.People will spend more time trialing and be more cautious than they were the first time around."

Broadband wireless services competing with cable and DSL are based on multichannel multipoint distribution service (MMDS). The technology has existed for several years. Nationally, WorldCom holds about 60% of the licenses available for MMDS spectrum, followed by Sprint and a host of smaller companies.

The first generation of MMDS technology stalled in 2001 when it became obvious to providers that they couldn't make money from the service. First-generation technology required an unobstructed line of sight between an end user and a local transmission tower. First-generation MMDS also required providers to install dishes on end-user buildings, which required a visit from the provider's service technicians.

Sprint and WorldCom stopped adding broadband wireless customers, saying they would wait to assess next-generation broadband wireless gear before moving forward.

The next generation of MMDS equipment doesn't require a direct line of sight between users and nearby transmission towers. Antennas compress radio waves into smaller, more concentrated beams that are able to go through trees or building walls.

Even better, next-generation gear requires no technician visits. Providers can ship users a small, portable, battery-powered modem, which the users can install through an Ethernet or USB connection.