May 2008 - Interview with: CX2 Technologies, Inc. (CXTO-OTC: BB), President and CEO, Michael Rand - featuring: their frequency-efficient wireless data communication products operating in the 220 MHz spectrum.

CX2 Technologies, Inc. (CXTO-OTC: BB)

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CX2 Is In The Right Place At The Right Time With Their Products For 220 MHz - The Frequency Is Ideal For Public Safety Needs - CX2 Radios Offer Automatic Vehicle Location (AVL) And Can Relay Weather And Traffic Data As Well As Data From Biological, Chemical, And Radiation Sensors


CX2 Technologies, Inc.

3700 Airport Road, Suite 410B
Boca Raton, FL 33431
Phone: 561-347-9235

Michael Rand
CEO & President

Interview conducted by:
Lynn Fosse, Senior Editor
Published – May 2, 2008

In addition to his responsibilities as CEO of CX2 Technologies, Inc., Michael Rand is the marketing director of GEOCommand, Inc., a company partnering with CX2 on a homeland security public safety project.

With more than 12 years of experience in voice and data systems engineering, Mr. Rand brings considerable expertise in system administration to CX2. He was a senior systems engineer at Precision Response Corporation (PRC), where he was responsible for the rollout and support of a state-of-the-art call center. He then went on to implement satellite and wireless communications systems for Larry Smith Marine Electronics.

As an entrepreneur, Mr. Rand has also been involved in several FCC 220 MHz radio spectrum auctions and acquisitions since 1994. 

Mr. Rand is focusing CX2 on its core data communications technology. He plans to market the company’s highly efficient narrowband modem radio to private corporations and government agencies, both of which require the real-time data communication, fleet tracking, and remote sensor capabilities of CX2 narrowband radios.

Company Profile:
CX2 Technologies, Inc. designs and markets frequency-efficient wireless data communication products operating in the 220 MHz spectrum. The company’s data telemetry solutions monitor both fixed and mobile assets. 

CX2 digital data radios are multi-functional and programmable. The radios operate in a SCADA environment to offer command and control capability. In addition, CX2 offers Fleet Tracer™, a fleet tracking software that works with CX2 Data Lynx™ data modems, which include optional embedded GPS.

CX2 engineers can customize the company’s solutions to meet any organization’s wireless requirements.

CEOCFO: Mr. Rand, as the new CEO of CX2, what is your vision for the company?
Mr. Rand: “Our vision is for CX2 to be the 220 MHz radio manufacturer of choice for public safety.” 

CEOCFO: How do you get there?
Mr. Rand: “We already have the best products on the market now. We get there by creating market awareness of our technology and the 220 MHz spectrum as a whole, which is pretty much underutilized. Not many people know about the spectrum.” 

CEOCFO: Please explain the 220 MHz spectrum and your role in it.
Mr. Rand: “In 1993 the original 220 MHz spectrum was issued by the FCC through a lottery followed by three subsequent auctions. It is a narrowband frequency with certain characteristics that make it ideal for public safety. For instance, cellular frequencies require towers every 20 miles, whereas 220, with its narrowband characteristics, could allow towers at distances up to 40 miles depending on the terrain. This allows for a coverage radius up to 1,200 square miles per tower, making it very efficient and cost effective. It propagates extremely well in rugged areas and major metropolitan areas, where other frequencies, such as 800–900 MHz, are noted for drop-off and cross talk as a result of overcrowding. In public safety, the 800–900 MHz frequency is notorious for having communication problems in those frequencies.” 

CEOCFO: What is the role of the CX2 technology?
Mr. Rand: “We see our technology as ideal for data collection – for instance, with Automatic Vehicle Location (AVL), CX2 radios can help organizations track fleets, equipment, and personnel. In addition, CX2 technology is useful for gathering remote weather and traffic data, and data from biological, chemical, and radiation sensors.” 

CEOCFO: What is it you are actually providing?
Mr. Rand: “We are primarily a development company. We develop radio communications technology, and we outsource the manufacturing of our technology. We also design the software for gathering the information that is transmitted and adding value to it by creating databases and ways of analyzing the information.”

CEOCFO: Will you give us an example of whom you are selling to and what you are doing for them?
Mr. Rand:
“If you are talking about our recent sales, those were to 220 MHz license holders, one in Miami and one in New York. They were equipped for voice communications. We sold them data communications base stations to allow them to transmit and receive data for automatic vehicle location, which will allow them to sell our fleet tracking software. They can do credit card swiping wirelessly over 220 MHz through a third-party service. The other implementation for this technology is SCADA, which is used by public utilities for remote monitoring and remote control of assets. Utility companies can use SCADA for meter reading. Companies such as pipeline companies, or oil or gas companies that have remote wells, can monitor their resources over a wide area. They can also monitor alarms and the efficiencies of their infrastructure, and they can control valves remotely.” 

CEOCFO: How does your agreement with GEOCommand lead you into the emergency responder area?
Mr. Rand: “GEOCommand is a mobile emergency response information system. The company developed its suite of applications for public safety and homeland security. GEOCommand retained us to work on writing code to integrate sensors with the CX2 Data Lynx™ data modem technology, to integrate the data into the GEOCommand Dynamic Server™, and to broker the data out to first responders using the GEOCommand Mobile Module™.” 

CEOCFO: Is there much competition? What sets CX2 Technologies’ products apart?
Mr. Rand: “In the recent 700 MHz auction conducted by the FCC, a portion, a ten-channel block called the D Channel, was set aside for public safety. That spectrum was not auctioned off because nobody met the minimum bid requirement. This sets the stage to make 220 an alternative frequency for transmitting data and monitoring sensors, because the FCC has to go back to the drawing board and figure out how they are going to handle this problem. They weren’t able to raise the money to build out the 700 MHz network. We are touting 220 because it meets the 9/11 Commission requirements for taking legacy systems and incorporating new world technology to create an interoperable network. We have already successfully demonstrated that 220 MHz can do just that, in a demo for the Department of Homeland Security last April, at the Center for Domestic Preparedness.

One of the drawbacks to the 700 MHz spectrum is that the first responders have pre-emptive rights to the network. In other words, it was to be a public/private partnership. The private or commercial operators that were supposedly going to bid on this were supposed to build it out and have commercial use of the spectrum until an emergency occurred, and then public safety would be able to override the network and have access to it. There is one problem: Sensor data, such as chemical, biological, and radiation sensor data, is something you don’t want to monitor after the fact. It is something you want to constantly be aware of before a critical situation occurs, so that you have awareness and can mitigate the situation effectively. We filed comments with the FCC along with GEOCommand about the shortcomings of the auction, and how 220 could effectively provide a data communications network that would be of great benefit to public safety. In 1992, the FCC set aside two ten-channel 220 MHz nationwide licenses for public safety and the federal government. These licenses are free to public safety, so there is a cost savings there – the licenses don’t need to be purchased. So we are ready to roll out the networks for public safety in 220.”

CEOCFO: What is the financial picture like for CX2?
Mr. Rand: “We will be reporting our quarterly earnings in the next couple of weeks, and you can see our public filings or financials on the SEC’s EDGAR Web site. We are rolling ahead with our development plan, and we are integrating weather and radiation sensors. We just completed on integrating Automatic Vehicle Location (AVL) with the GEOCommand Dynamic Server. We are moving along and are on target with our plans.” 

CEOCFO: Why should potential investors be interested? What might they miss when they first look at the company?
Mr. Rand: “Our technology is low cost, and it’s spectrum efficient. The federal government owns 200 MHz licenses, and these licenses are free to public safety. We have inventory and we can deliver immediately.”


Any reproduction or further distribution of this article without the express written consent of is prohibited.

“We see our technology as ideal for data collection – for instance, with Automatic Vehicle Location (AVL), CX2 radios can help organizations track fleets, equipment, and personnel. In addition, CX2 technology is useful for gathering remote weather and traffic data, and data from biological, chemical, and radiation sensors.” - Michael Rand does not purchase or make
recommendation on stocks based on the interviews published.