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LMDS is a radio system developed by Bellcore as a wireless local loop system that can be used in areas where installing physical cable is prohibitive, such as rural areas. While LMDS will never provide data rates comparable to fiber, it can provide the most economical way to provide high-speed last-mile connections for business in metro areas. Alcatel calls LMDS "wireless IP." The service is categorized as "fixed wireless," which really means that roaming between cells or other LMDS systems is usually not allowed. It also implies that subscribers are normally stationary, although antennas and equipment may be moved but the antenna must be aligned afterward.

LMDS uses a point-to-multipoint radio topology where a base station broadcasts to subscriber antennas. The subscriber to base station link is point to point. Point-to-multipoint and related topologies are illustrated and discussed further under the topic "Wireless Broadband Access Technologies."