(Local Multipoint Distribution Service) A digital wireless transmission system that works in the 28 GHz range in the U.S. and 24-40 GHz overseas. It requires line of sight between transmitter and receiving antenna, which can be from one to four miles apart depending on weather conditions. LMDS provides bandwidth in the OC-1 to OC-12 range, which is considerably greater than other wireless broadband services.

LMDS can be deployed in asymmetric and symmetric configurations. It is designed to provide the "last mile" from a carrier of data services to a large building or complex that is not wired for high-bandwidth communications. In areas without gas or steam pipes or other underground conduits, it is less costly to set up LMDS transceivers on rooftops than to dig up the ground to install optical fiber. See MMDS.