Critical Telecom Corp. has launched a flagship product designed to extend the reach of DSL while also maintaining data rates.

The product, dubbed "FRED" (Full Rate Extended DSL), is a "transparent" DSL extender capable of delivering full-rate ADSL speeds of 8 Mbps at distances up to 25 kilometers from a telco's central office.

The Canadian vendor said the platform will help telcos deliver advanced applications such as broadcast video and video-on-demand to customers who cannot be serviced due to the distance limitations in some legacy systems.

Critical Telecom also claims that FRED installation costs are 65 percent less than traditional DSL setups and that the necessary equipment can be installed in one-third the time. The platform leverages existing telecom infrastructure, including cross-connect cabinets in residential and rural neighborhoods, the company said.

Based on digital transmission technology, the FRED system converts an ADSL data stream originating from a central office into a multiplexed optical signal and, using 1 or 10 Gigabit transport components, sends the signal to an existing cross-connect cabinet. At that point, FRED reconstructs and demultiplexes the electrical signal, essentially restoring the original ADSL signal for distribution to subscribers.

On the financial front, Critical Telecom said it completed a $12.7 million round of funding, led by VenGrowth Capital Partners. Other investors include TELUS Ventures, Business Development Bank of Canada, and Crown Ventures Fund Inc.