Broadband wireless (BW) is an emerging wireless technology that allows simultaneous wireless delivery of voice, data, and video. BW is considered a competing technology with Digital Subscriber Line (DSL). It is generally implemented in metropolitan areas and requires clear line of sight between the transmitter and the receiving end. BW comes in two flavors: Local multi-point distribution service (LMDS) and Multi-channel multi-point distribution service (MMDS). Both operate in FCC-licensed frequency bands.

LMDS is a high bandwidth wireless networking service in the 28-31 GHz range of the frequency spectrum and has sufficient bandwidth to broadcast all the channels of direct broadcast satellite TV, all of the local over-the-air channels, and high speed full duplex data service. Average distance between LMDS transmitters is approximately one mile apart.

MMDS operates at lower frequencies, in the 2 GHz licensed frequency bands. MMDS has wider coverage than LMDS, up to 35 miles, but has lower throughput rates. Companies such as Sprint and WorldCom own MMDS licenses in the majority of U.S. metropolitan areas. Broadband wireless still involves costly equipment and infrastructures. However, as it is more widely adopted, it is expected that the service cost will decrease.