----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-QSB**

|  (Mark                One) |                                                                                                                                |
|---------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| **x**                           | **QUARTERLY              REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF              1934**                     |
| ** **                      | **For the Quarterly              Period              Ended December 31, 2006**                                                      |
| ** **                      | ** **                                                                                                                          |
| ** **                      | **OR**                                                                                                                              |
| ** **                      | ** **                                                                                                                          |
| **o**                           | **TRANSITION REPORT              PURSUANT              TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE              ACT OF 1934** |
| ** **                      | **For the transition              period              from ________________to ___________________**                                 |
|                            |                                                                                                                                |

**000-24595**

|  **Nevada**                                                                                   |   | ** 88-0343832**                                                  |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
|  (State                or other jurisdiction of                incorporation or organization) |   |  (IRS                Employer Identification                No.) |

**300        S. Harbor Blvd., Anaheim, California 92805**

**(800)        748-5548**

**APPLICABLE        ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEEDING        FIVE        YEARS.**

**APPLICABLE        TO CORPORATE ISSUERS**

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**NEXTPHASE        WIRELESS, INC.**

**TABLE        OF CONTENTS**

|                                                                                                  |       | **Page                  no.** |
|-------------------------------------------------------------------------------------------------------|------------|-------------------------------|
| **PART I                - FINANCIAL                INFORMATION**                                      |       | F-1                           |
|                                                                                                  |       |                          |
|  Financial                  Statements                  (Unaudited)                              |       | F-1                  to F-14  |
|                                                                                                  |       |                          |
| Item                  2. Management's Discussion and Analysis or Plan of                  Operation   |       | 3                             |
|                                                                                                  |       |                          |
| Item                  3. Controls and                  Procedures                                     |       | 8                             |
|                                                                                                  | ** ** | ** **                    |
| **PART II                - OTHER                INFORMATION**                                         |       | 8                             |
|                                                                                                  |       |                          |
| Item                  1. Legal Proceedings                                                            |       | 8                             |
|                                                                                                  |       |                          |
| Item                  2. Unregistered Sales of Equity Securities and Use                  of Proceeds |       | 8                             |
|                                                                                                  |       |                          |
| Item                  3. Defaults Upon Senior Securities                                              |       | 9                             |
|                                                                                                  |       |                          |
| Item                  4. Submission of Matters to a Vote of Security                  Holders         |       | 9                             |
|                                                                                                  |       |                          |
| Item                  5. Other Information                                                            |       | 9                             |
|                                                                                                  |       |                          |
| Item                  6. Exhibits                                                                     |       | 9                             |
|                                                                                                  | ** ** | ** **                    |
| **SIGNATURES**                                                                                        |       | 10                            |
|                                                                                                  |       |                          |

----

**PART        I. FINANCIAL INFORMATION**

**NextPhase        Wireless, Inc.**

|                                                                                                                                                                                                 |   | **December                  31, 2006** |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|
| **ASSETS**                                                                                                                                                                                           |   |                                   |       |
|                                                                                                                                                                                                 |   |                                   |       |
| Current                assets                                                                                                                                                                        |   |                                   |       |
|                                                                                                                                                                                                 |   |                                   |       |
| Cash                  and cash equivalents                                                                                                                                                           |   | $                                      | 15,929     |   |
| Accounts                  receivable, net of allowance of $9,481 (note 4)                                                                                                                            |   |                                   | 238,554    |   |
| Other                  current assets (note 6)                                                                                                                                                       |   |                                   | 403        |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Total                  current assets                                                                                                                                                                |   |                                   | 254,886    |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Property                  and equipment, net of accumulated depreciation of $180,964                  (note 7)                                                                                       |   |                                   | 317,161    |   |
| Customer                  contracts, net of accumulated amortization of $90,000                  (note 7 )                                                                                           |   |                                   | 1,110,000  |   |
| Trademarks                                                                                                                                                                                           |   |                                   | 100,000    |   |
| Supplier                  contracts, net of accumulated amortization of $15,000                  (note 7)                                                                                            |   |                                   | 85,000     |   |
| Deposits                                                                                                                                                                                             |   |                                   | 8,637      |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Total                assets                                                                                                                                                                          |   | $                                      | 1,875,683  |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| **LIABILITIES                AND (DEFICIENCY IN)                STOCKHOLDERS' EQUITY**                                                                                                               |   |                                   |       |   |
| Current                liabilities                                                                                                                                                                   |   |                                   |       |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Accounts                  payable and accrued liabilities (note 8)                                                                                                                                   |   | $                                      | 1,024,598  |   |
| Loan                  from related party (note 9)                                                                                                                                                    |   |                                   | 30,132     |   |
| Deferred                  revenue (note 1)                                                                                                                                                           |   |                                   | 47,560     |   |
| Cash                  advances payable (note 10)                                                                                                                                                     |   |                                   | 107,500    |   |
| Notes                  payable and capital leases - current portion (note 11)                                                                                                                        |   |                                   | 184,608    |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Total                  current liabilities                                                                                                                                                           |   |                                   | 1,394,398  |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Notes                  payable and capital leases, net of discount of $43,934 (notes                  11)                                                                                            |   |                                   | 2,319,441  |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Total                liabilities                                                                                                                                                                     |   |                                   | 3,713,839  |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Commitments                and contingencies (note 13)                                                                                                                                               |   |                                   | —    |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| (Deficiency                in) stockholder's equity Preferred                stock, 0.001 par value: (note 12)                                                                                       |   |                                   |       |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| 20,000,000                  shares authorized, no shares issued and                  outstanding                                                                                                     |   |                                   | —    |   |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Common                  stock, $0.001 par value; 200,000,000 shares authorized; 25,975,802                  shares issued and 25,885,622 outstanding at December 31, 2006 (note                  12) |   |                                   | 25,886     |   |
| Additional                  paid-in capital                                                                                                                                                          |   |                                   | 5,569,366  |   |
| Deferred                  Compensation (note 12)                                                                                                                                                     |   |                                   | (10,335    | ) |
| Accumulated                  deficit                                                                                                                                                                 |   |                                   | (7,423,072 | ) |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Total                  (deficiency in) stockholder's equity                                                                                                                                          |   |                                   | (1,838,155 | ) |
|                                                                                                                                                                                                 |   |                                   |       |   |
| Total                liabilities and (deficiency in)                stockholders' equity                                                                                                             |   | $                                      | 1,875,684  |   |

----

**NextPhase        Wireless, Inc.**

|                                                                                      |   | **For                  the Three****Months                  Ended December                  31, 2006** | ** ** | **For                  the Three****Months                  EndedDecember                  31, 2005** | ** ** | **For                  the Nine****Months                  EndedDecember                  31, 2006** | ** ** | **For                  the Nine****Months                  EndedDecember                  31, 2005** |          |
|-------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------|---------------|
| Revenues                                                                                  |   | $                                                                                                      | 531,095    |                                                                                                  | $          | 97,541                                                                                               |       | $                                                                                                    | 1,688,799     |   | $ | 340,341 |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Cost                  of revenue (exclusive                  of depreciation shown below) |   |                                                                                                   | 250,195    |                                                                                                  |       | 59,141                                                                                               |       |                                                                                                 | 861,210       |   |   | 293,130 |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Gross                profit                                                               |   |                                                                                                   | 280,900    |                                                                                                  |       | 38,400                                                                                               |       |                                                                                                 | 827,589       |   |   | 47,211 |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Operating                expenses:                                                        |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Selling,                  general and administrative expenses                             |   |                                                                                                   | 594,253    |                                                                                                  |       | 582,313                                                                                              |       |                                                                                                 | 1,794,843     |   |   | 1,425,339 |   |
| Depreciation                  and amortization                                            |   |                                                                                                   | 67,943     |                                                                                                  |       | 18,129                                                                                               |       |                                                                                                 | 201,266       |   |   | 46,793 |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Total                  operating expenses                                                 |   |                                                                                                   | 662,196    |                                                                                                  |       | 600,442                                                                                              |       |                                                                                                 | 1,996,109     |   |   | 1,472,132 |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Operating                loss                                                             |   |                                                                                                   | (381,296   | )                                                                                                     |       | (562,042                                                                                             | )          |                                                                                                 | (1,168,520    | ) |   | (1,424,921 | ) |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Other                (income) expense:                                                    |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Legal                  settlement                                     |   |                                                                                                   | —    |                                                                                                  |       | (915,500                                                                                             | )          |                                                                                                 | —  |   |   | (915,500 | ) |
| Interest                  (income) expense                                                |   |                                                                                                   | (23,825    | )                                                                                                     |       | 27,248                                                                                               |       |                                                                                                 | 104,016       |   |   | 40,949 |   |
| Other                  (income) expense                                                   |   |                                                                                                   | —    |                                                                                                  |       | —                                                                                              |       |                                                                                                 | (4,251        | ) |   | (2,120 | ) |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Total                  other (income) expense                                             |   |                                                                                                   | (23,825    | )                                                                                                     |       | (888,252                                                                                             | )          |                                                                                                 | 99,765        |   |   | (876,671 | ) |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Profit                  (Loss) before income taxes                                        |   |                                                                                                   | (357,472   | )                                                                                                     |       | 326,210                                                                                              |       |                                                                                                 | (1,268,285    | ) |   | (548,250 | ) |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Provision                  for income taxes                                               |   |                                                                                                   | —    |                                                                                                  |       | —                                                                                              |       |                                                                                                 | —       |   |   | — |   |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Net                profit (loss)                                                          |   | $                                                                                                      | (357,472   | )                                                                                                     | $          | 326,210                                                                                              |       | $                                                                                                    | (1,268,285    | ) | $ | (548,250 | ) |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Net                profit (loss) per share - basic and diluted                            |   | $                                                                                                      | (0.01      | )                                                                                                     | $          | 0.01                                                                                                 |       | $                                                                                                    | (0.05         | ) | $ | (0.03 | ) |
|                                                                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |   |   |
| Weighted                average shares outstanding -                                      |   |                                                                                                   |       |                                                                                                  |       |                                                                                                 |       |                                                                                                 |          |   |   |  |   |
| basic                  and diluted                                                        |   |                                                                                                   | 25,469,033 |                                                                                                  |       | 22,479,924                                                                                           |       |                                                                                                 | 24,544,281    |   |   | 21,614,328 |   |

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**NextPhase        Wireless, Inc.**

|                                                                                                                         |   | **For                    the Nine Months                    Ended December                    31, 2006** | ** **   | **For                    the Nine Months                    Ended December                    31, 2005** |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------------|----------------------------------------------------------------------------------------------------------|--------|
| Cash                  flows from operating activities:                                                                       |   |                                                                                                     |         |                                                                                                     |   |
|                                                                                                                         |   |                                                                                                     |         |                                                                                                     |   |
| Net                    loss                                                                                                  |   | $                                                                                                        | (1,268,285   | )                                                                                                        | $      | (548,250 | ) |
| **ADJUSTMENTS                    TO RECONCILE NET LOSS TO NET CASH                    USED IN OPERATING ACTIVITIES:**        |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Legal                    settlement                                                                                          |   |                                                                                                     | —      |                                                                                                     |   | (918,500 | ) |
| Non-cash                    compensation                                                                                     |   |                                                                                                     | 282,128      |                                                                                                     |   | 33,160 |   |
| Amortization                    of deferred compensation                                                                     |   |                                                                                                     | —      |                                                                                                     |   | 100,000 |   |
| Amortization                    of discount on notes payable                                                                 |   |                                                                                                     | 16,920       |                                                                                                     |   | 15,665 |   |
| Bad                    debt expense                                                                                          |   |                                                                                                     | —      |                                                                                                     |   | 8,383 |   |
| Interest                    expense                                                                                          |   |                                                                                                     | 50,086       |                                                                                                     |   | — |   |
| Depreciation                    and amortization                                                                             |   |                                                                                                     | 201,266      |                                                                                                     |   | 46,793 |   |
| Changes                    in assets and liabilities:                                                                        |   |                                                                                                     |         |                                                                                                     |   |   |   |
| (Increase)                    decrease in assets:                                                                            |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Accounts                    receivable, net                                                                                  |   |                                                                                                     | 7,547        |                                                                                                     |   | (56,147 | ) |
| Other                    current assets                                                                                      |   |                                                                                                     | 2,225        |                                                                                                     |   | (4,599 | ) |
| Other                    receivables                                                                                         |   |                                                                                                     | (46,890      | )                                                                                                        |   | — |   |
| Deposits                                                                                                                     |   |                                                                                                     | (600         | )                                                                                                        |   | — |   |
| Increase                    (decrease) in liabilities:                                                                       |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Accounts                    payable                                                                                          |   |                                                                                                     | 475,297      |                                                                                                     |   | 307,064 |   |
| Advances                    Payable                                                                                          |   |                                                                                                     | 7,500        |                                                                                                     |   | (10,506 | ) |
| Deferred                    revenue                                                                                          |   |                                                                                                     | 13,779       |                                                                                                     |   | (2,997 | ) |
| **NET                    CASH USED IN OPERATING ACTIVITIES**                                                                 |   |                                                                                                     | (259,027     | )                                                                                                        |   | (1,029,934 | ) |
|                                                                                                                         |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Cash                    flows from investing activities:                                                                     |   |                                                                                                     |         |                                                                                                     |   |   |   |
|                                                                                                                         |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Purchase                    of property and equipment                                                                        |   |                                                                                                     | (1,536,405   | )                                                                                                        |   | (60,882 | ) |
| Purchase                    of company stock                                                                                 |   |                                                                                                     | (9,979       | )                                                                                                        |   | — |   |
| NET                    CASH USED IN INVESTING ACTIVITIES                                                                     |   |                                                                                                     | (1,546,384   | )                                                                                                        |   | (60,882 | ) |
|                                                                                                                         |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Cash                  flows from financing activities:                                                                       |   |                                                                                                     |         |                                                                                                     |   |   |   |
|                                                                                                                         |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Proceeds                    from notes payable                                                                               |   |                                                                                                     | 1,666,000    |                                                                                                     |   | 25,000 |   |
| Proceeds                    from cash advances payable                                                                       |   |                                                                                                     | 100,000      |                                                                                                     |   | 800,000 |   |
| Line                    of credit payable                                                                               |   |                                                                                                     | 30,132  |                                                                                                     |   | — |   |
| Principal                    payments on notes payable and capital leases                                                    |   |                                                                                                     | (10,639      | )                                                                                                        |   | (190,781 | ) |
| Proceeds                    from sale of common stock                                                                        |   |                                                                                                     | —      |                                                                                                     |   | 410,000 |   |
| Common                    stock subscribed                                                                                   |   |                                                                                                     | —      |                                                                                                     |   | 35,000 |   |
| Increase                    in deposits                                                                                      |   |                                                                                                     | —      |                                                                                                     |   | (3,376 | ) |
| **NET                    CASH PROVIDED BY FINANCING                    ACTIVITIES**                                          |   |                                                                                                     | 1,785,493    |                                                                                                     |   | 1,075,843 |   |
|                                                                                                                         |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Increase                  in cash and cash equivalents                                                                       |   |                                                                                                     | (19,918      | )                                                                                                        |   | (14,973 | ) |
| Cash                  and cash equivalents at beginning of period                                                            |   |                                                                                                     | 35,847       |                                                                                                     |   | 50,948 |   |
| Cash                  and cash equivalents at end of period                                                                  |   | $                                                                                                        | 15,929       |                                                                                                     | $      | 35,975 |   |
| Supplemental                  disclosure of cash flow                  information:                                          |   |                                                                                                     |         |                                                                                                     |   |   |   |
| Cash                  paid during the period for:                                                                            |   |                                                                                                     |         |                                                                                                     |   |   |   |
|   Interest                                                                                                         |   | $                                                                                                        | 1,676        |                                                                                                     | $      | — |   |
|  Taxes                                                                                                             |   | $                                                                                                        | —      |                                                                                                     | $      | — |   |
| Issued                  of common stock previously subscribed                                                                |   | $                                                                                                        | 25,000       |                                                                                                     | $      | 245,000 |   |
| Acquisition                  of automobile for note                  payable                                                 |   | $                                                                                                        | 50,650       |                                                                                                     | $      | — |   |
| Cancellation                  of stock from legal settlements                                                                |   | $                                                                                                        | 250,000      |                                                                                                     | $      | — |   |
| Cancellation                  of shares originally obtained in                  reverse merger                               |   | $                                                                                                        | 121          |                                                                                                     | $      | — |   |
| Common                    stock issued for accounts payable                                                                  |   | $                                                                                                        | 37,639       |                                                                                                     | $      | — |   |
| Beneficial                  conversion feature of notes payable                                                              |   | $                                                                                                        | —      |                                                                                                     | $      | 20,000 |   |
| Common                  stock issued for acquisition of Blazen                                                               |   | $                                                                                                        | —      |                                                                                                     | $      | 25,000 |   |
| Shares                  issued for legal settlement, previously                  accrued                                     |   | $                                                                                                        | 20,000       |                                                                                                     | $      | — |   |
| Beneficial                  conversion feature of note payable                                                               |   | $                                                                                                        | 69,697       |                                                                                                     | $      | — |   |
| Amortization                    of discount on note payable associated with                    beneficial conversion feature |   | $                                                                                                        | —      |                                                                                                     | $      | 15,665 |   |
| Amortization                  of deferred compensation                                                                       |   | $                                                                                                        | 79,000       |                                                                                                     | $      | 100,000 |   |
| Common                  stock issued for services                                                                            |   | $                                                                                                        | 203,128      |                                                                                                     | $      | 33,160 |   |
| Stock                  cancellation receivable from legal                  settlement                                        |   | $                                                                                                        | —      |                                                                                                     | $      | 723,750 |   |
| Marketable                  securities receivable from legal                  settlement                                     |   | $                                                                                                        | —      |                                                                                                     | $      | 198,000 |   |
| Common                  stock issued for accrued                  interest                                                   |   | $                                                                                                        | 69,000       |                                                                                                     | $      | — |   |

----

**NEXTPHASE        WIRELESS, INC.**

**NOTE        1: NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING        POLICIES**

    -  As            we            have extended our wireless `footprint' in Southern California, through            a            combination of organic growth and acquisitions, we have continued to            add small            to medium business subscribers, small office/home office (SOHO) subscribers,            and residential subscribers in underserved markets to our            network. 

----

----

| ·   | Operating                as an Internet Service Provider (ISP) of tiered Internet connectivity                services to business and residential subscribers,                nationwide. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Design,                deployment, operation and support of integrated wireless networking                solutions. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|
| ·   | Bundling                multiple technologies, such as Broadband Wireless Access (BWA), Voice                over                Internet Protocol (VoIP) and WiFi, along with a high service component                that target vertical markets such as public safety, transport and                homeland                security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Developing                and deploying our portfolio of connectivity products and                services. |
|--------------------|-------------------------------------------------------------------------------------------------------------|
| ·   | Continuing                to develop our management team with best-in-class experienced executives                and professionals. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Seeking                strategic alliances, relationships, and acquisitions to augment the                growth                of our connectivity products and services                operations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Growing                our market share and extending our footprint through selective                acquisitions and franchise and licensing                programs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | **Options** |   | **Weighted-Average                    Exercise Price** |   |
|-----------------------------------------------------|--------|-------------|--------|--------------------------------------------------------|--------|
| Outstanding                  at September 30, 2006  |   |        | 0      |                                                   | $      | 0.00 |   |
| Issued                                              |   |        | 0      |                                                   |   | 0.00 |   |
| Exercised                                           |   |        | 0      |                                                   |   | 0.00 |   |
| Forfeited                  or expired               |   |        | 0      |                                                   |   | 0.00 |   |
|                                                |   |        |   |                                                   |   |   |   |
| Outstanding                  at December 31, 2006   |   |        | 0      |                                                   | $      | 0.00 |   |
| Non-vested                  at December 31, 2006    |   |        | 0      |                                                   |   | 0.00 |   |
| Exercisable                    at December 31, 2006 |   |        | 0      |                                                   | $      | 0.00 |   |

|                                                                                                                                                                                                                |   | **For                    the three months ended****December 31, 2005** | ** ** | **For                    the nine months                    ended****December                    31, 2005** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------------------------|--------|
| Net                  profit (loss) - as reported                                                                                                                                                                    |   | $                                                                      | 326,210    |                                                                                                        | $      | (548,250 | ) |
| Add:     Total                  stock based                  employee compensation expense as reported under intrinsic value                  method                  (APB No. 25)         |   |                                                                   | —    |                                                                                                        |   | — |   |
|                                                                                                                                                                                                                |   |                                                                   |       |                                                                                                        |   |   |   |
| Deduct:    Total                    stock                    based employee compensation expense                    as reported under fair value based                    method (SFAS No. 123) |   |                                                                   | —    |                                                                                                        |   | — |   |
|                                                                                                                                                                                                                |   |                                                                   |       |                                                                                                        |   |   |   |
| Net                  profit (loss) - Pro forma                                                                                                                                                                      |   | $                                                                      | 326,210    |                                                                                                        | $      | (548,250 | ) |
|                                                                                                                                                                                                                |   |                                                                   |       |                                                                                                        |   |   |   |
| Net                    profit (loss) attributable to common shareholders                    - Pro forma                                                                                                             |   | $                                                                      | 326,210    |                                                                                                        | $      | (548,250 | ) |
|                                                                                                                                                                                                                |   |                                                                   |       |                                                                                                        |   |   |   |
| Basic                    and diluted profit (loss) per share - as reported                                                                                                                                          |   | $                                                                      | 0.01       |                                                                                                        | $      | (0.03 | ) |
|                                                                                                                                                                                                                |   |                                                                   |       |                                                                                                        |   |   |   |
| Basic                    and diluted profit (loss) per share                    - Pro forma                                                                                                                         |   | $                                                                      | 0.01       |                                                                                                        | $      | (0.03 | ) |

----

----

**NOTE        2 - SYNKRONUS ACQUISITION**

| Common                stock         |   | $      | —   |   |
|-------------------------------------|--------|--------|-----------|--------|
| Cash                                |   |   | 1,500,000 |   |
| Total                purchase price |   | $      | 1,500,000 |   |

|                                           | **Amount**           |   | **Estimated                  Lives** |
|------------------------------------------------|----------------------|--------|--------------------------------------|
| Computers                and related equipment | $  100,000 |   | 3                  years             |
| Customer                lists                  | 1,200,000            |   | 10                  years            |
| Trademarks                                     | 100,000              |   | indefinite                           |
| Supply                contracts                | 100,000              |   | 5                  years             |
| Total                purchase price            | $1,500,000           |   |                                 |

|                                     |   | **Three                  Months                  Ended December                  31, 2005** | ** ** | **Nine                  Months Ended December                  31, 2005** |   |
|------------------------------------------|--------|---------------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------|--------|
| Sales                                    |   |                                                                                        |       |                                                                      |   |
| NextPhase                                |   | $                                                                                           | 97,540     |                                                                      | $      | 340,340 |   |
| Synkronus                                |   |                                                                                        | 464,098    |                                                                      |   | 1,405,127 |   |
| Total                  sales             |   | $                                                                                           | 561,638    |                                                                      | $      | 1,745,467 |   |
| Net                  profit (Loss)       |   | $                                                                                           | 299,070    |                                                                      | $      | (369,016 | ) |
| NextPhase,                as reported    |   |                                                                                        |       |                                                                      |   |   |   |
| Profit                  (Loss) per share |   | $                                                                                           | 0.01       |                                                                      | $      | (0.03 | ) |
| Pro                forma                 |   |                                                                                        |       |                                                                      |   |   |   |
| Profit                  (Loss) per share |   | $                                                                                           | 0.01       |                                                                      | $      | (0.02 | ) |

----

**NOTE        3 - RELATED PARTY TRANSACTIONS**

**NOTE        4 - ACCOUNTS RECEIVABLE**

**NOTE        5 - OTHER RECEIVABLES**

**NOTE        6 - OTHER CURRENT ASSETS**

**NOTE        7 - PROPERTY AND EQUIPMENT ASSETS**

| Telecommunications                  equipment   |   | $      | 166,261  |   |
|-------------------------------------------------|--------|--------|----------|--------|
| Computer                  equipment             |   |   | 135,260  |   |
| Communications                  towers          |   |   | 118,071  |   |
| Automobile                                      |   |   | 48,067   |   |
| Furniture                  and fixtures         |   |   | 23,291   |   |
| Leasehold                  improvements         |   |   | 7,176    |   |
| Total                  property and equipment   |   |   | 498,126  |   |
| Less:                  accumulated depreciation |   |   | (180,964 | )      |
| Net                  property and equipment     |   | $      | 317,162  |   |

----

|                                                |   | **CustomerContracts** | ** ** | **Trademarks** | ** ** | **Supplier                  Contracts** |   |
|------------------------------------------------|--------|-----------------------|------------|----------------|------------|-----------------------------------------|--------|
| Original                amount                 |   | $                     | 1,200,000  |           | $          | 100,000                                 |   | $ | 100,000 |   |
| Less:                Accumulated Amortization: |   |                  | (90,000    | )              |       | —                                 |   |   | (15,000 | ) |
| Net                book value                  |   | $                     | 1,110,000  |           | $          | 100,000                                 |   | $ | 85,000 |   |

**NOTE        8 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

| Accounts                  payable and accrued liabilities |   | $      | 922,220   |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|
|  Payroll                and related                  |   |   | 53,553    |   |
|  Accrued                interest                     |   |   | 45,161    |   |
|  Sales                taxes                          |   |   | 3,664     |   |
|                                                      |   | $      | 1,024,598 |   |

**NOTE        9 - LOAN AND LOAN GUARANTEES FROM RELATED PARTY**

**NOTE        10 - CASH ADVANCES PAYABLE**

----

**NOTE        11 - NOTES PAYABLE AND CAPITAL LEASES**

| Convertible                  note payable in the amount of $2,300,000 dated March 31, 2006.                  The note is                  deemed effective at the date upon which the cash was received by                  the                  Company, or April 7, 2006. The note bears interest at the rate                  of 6% per                  annum, and is due in full on April 1, 2008. Upon maturity, the                  note and                  accrued interest are convertible into common stock of the Company                  at the                  lower of the fair market value of the Company's common stock at                  the date                  of conversion or $0.33 per share. The minimum price at which the                  note and                  accrued interest may convert is $0.15 per share. The Company determined                  the value of the embedded beneficial conversion feature of this                  note                  payable at the time of issuance to be $69,697, which is considered                  a                  discount to the note. This discount is amortized December 31, 2006,                  $8,844                  of this discount was amortized, and at December 31, 2006, the remaining                  discount is $43,934. |   |  $                  2,256,066       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                  note payable in the amount of $61,000 dated June 9, 2006. The note                  bears                  interest at the rate of 6% per annum, and is due in full on June                  9, 2007.                  Upon maturity, the note and accrued interest are convertible into                  common                  stock of the Company at the lower of the fair market value of the                  Company's common stock at the date of conversion or $0.33 per share.                  The                  minimum price at which the note and accrued interest may convert                  is $0.15                  per share. The Company determined the value of the embedded beneficial                  conversion feature of this note payable at the time of issuance                  to be                  $0.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |  61,000                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Note                  payable in the amount of $50,650 for an                  auto loan. This note is                  dated June 14, 2006, and is payable in 60 equal monthly installments                  of $924. This note bears interest at the rate of 5.9% per annum,                  and is                  guaranteed by the Company's chairman. During the three months ended                  December 31, 2006 the Company received a refund check in the amount                  of                  $2,583 which was applied to the outstanding loan amount. During                  the three                  months ended December 31, 2006, the Company made three payment                  on this                  Note, consisting of interest of $679 and principal of $2,094.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |  43,041                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                  note payable in the amount of $30,000 dated March 16, 2006 payable                  to a                  board member. The note bears interest at the rate of 6% per annum,                  and is                  due in full on April 1, 2007. Upon maturity, the note and accrued                  interest                  are convertible into common stock of the Company at the lower of                  the fair                  market value of the Company's common stock at the date of conversion                  or                  $0.32 per share. The minimum price at which the note and accrued                  interest                  may convert is $0.15 per share. There was no beneficial conversion                  feature                  embedded in this note at the time of issuance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |  30,000                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Capital                  lease in the amount of $13,291 for                  furniture located the Company's                  corporate office. The lease calls for payments of $360 per                  month for 44 months; the final payment is due April 15, 2009. During                  the three months ended December 31, 2006, the Company made three                  payments                  in the aggregate amount of $1,080, consisting of principal of $853                  and                  interest of $227.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  8,942                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                  note payable in the amount of                  $22,500 dated December 20,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 22,500                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                note payable in the amount of $22,500 dated December 20,                2006. The note bears interest at the rate of 7% per annum, and                is due in full on December 20, 2007. When the Company’s common                stock reached $0.20 or above for a period of 10 consecutive days,                the principal and accrued interest due under the note will convert                into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 22,500                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                  note payable in the amount of                  $30,000 dated December 20,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |  30,000                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                  note payable in the amount of                  $15,000 dated December 24,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |  15,000                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     |   |
| Convertible                  note payable in the amount of                  $15,000 dated December 27,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |  15,000                             |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |  $                  2,504,049       |   |
| Less:                Short-term portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |  (184,608                           | )      |
| Long-term                portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   $                  2,319,441 |   |

| ** ****Fiscal                  Year Ending                  March 31,** | ** ** | **Amount** |      |
|------------------------------------------------------------------------------|------------|------------|-----------|
|  2007                                                                   |       | $          | 171,431   |   |
|  2008                                                                   |       |       | 42,785    |   |
|  2009                                                                   |       |       | 2,311,142 |   |
|  2010                                                                   |       |       | 10,012    |   |
|  2011                                                                   |       |       | 10,632    |   |
|  2012                                                                   |       |       | 1,981     |   |
| Total                                                                        |       |       | $         | 2,547,983 |   |
| Discount                                                                     |       |       |      | (43,934 | ) |
|                                                                         |       |       | $         | 2,504,049 |   |

**NOTE        12 - EQUITY**

----

**NOTE        13 - CONTINGENCIES**

----

**NOTE        14 - GOING CONCERN MATTERS**

**NOTE          15 - SUBSEQUENT EVENTS**

----

ITEM        2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

**FORWARD        LOOKING STATEMENTS**

| ·   | our                ability to raise capital necessary to sustain our anticipated operations                and implement our proposed business plan, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | our                ability to implement our proposed business                plan, |
|--------------------|------------------------------------------------------------------------------------|
| ·   | the                ability to successfully integrate the operations of businesses we                have                acquired, or may acquire in the future, into our                operations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | our                ability to generate sufficient cash to pay our lenders and other                creditors, |
|--------------------|---------------------------------------------------------------------------------------------------------------|
| ·   | our                ability to obtain regulatory permits and approvals to operate in                the                high-speed wireless network industry, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                introduction of new broadband connectivity technologies by our competitors                that may have advantages over our planned products and may make our                planned products less attractive to our potential                customers, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | our                ability to identify and complete acquisitions and successfully integrate                the businesses we acquire, if any, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | our                ability to employ and retain qualified management and employees,                our                dependence on the efforts and abilities of our current employees                and                executive officers, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | changes                in government regulations that are applicable to our anticipated                business, |
|--------------------|------------------------------------------------------------------------------------------------------------------|
| ·   | changes                in the demand for our services, |
|--------------------|--------------------------------------------------------|
| ·   | the                degree and nature of our competition, |
|--------------------|----------------------------------------------------------|
| ·   | our                lack of diversification of our business                plan, |
|--------------------|---------------------------------------------------------------------------------|
| ·   | the                general volatility of the capital markets and the establishment of                a                market for our shares, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | disruption                in the economic and financial conditions primarily from the impact                of past                terrorist attacks in the United States, threats of future attacks,                police                and military activities overseas and other disruptive worldwide political                events. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Operating                as an Internet Service Provider (ISP) of tiered Internet connectivity                services to business and residential subscribers,                nationwide. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Design,                deployment, operation and support of integrated wireless networking                solutions. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|
| ·   | Bundling                multiple technologies, such as Broadband Wireless Access (BWA), Voice                over                Internet Protocol (VoIP) and WiFi, along with a high service component                that target vertical markets such as public safety, transport and                homeland security. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Developing                and deploying our portfolio of connectivity products and                services. |
|--------------------|-------------------------------------------------------------------------------------------------------------|
| ·   | Continuing                to develop our management team with best-in-class experienced executives                and professionals. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Seeking                strategic alliances, relationships, and acquisitions to augment the                growth                of our connectivity products and services                operations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Growing                our market share and extending our footprint through selective                acquisitions and franchise and licensing                programs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**RESULTS        OF OPERATIONS**

----

| Convertible                  note payable in the amount of                  $2,300,000 dated March 31,                  2006. The note is deemed effective at the date upon which the cash                  was received by the Company, or April 7, 2006. The note bears                  interest at the rate of 6% per annum, and is due in full on April                  1, 2008. Upon maturity, the note and accrued interest are convertible                  into common stock of the Company at the lower of the fair                  market value of the Company's common stock at the date of conversion                  or $0.33 per share. The minimum price at which the note                  and accrued interest may convert is $0.15 per share. The Company                  determined the value of the embedded beneficial conversion                  feature of this note payable at the time of issuance to                  be $69,697, which is considered a discount to the note. This discount                  is amortized December 31, 2006, $8,844 of this discount was                  amortized, and at December 31, 2006, the remaining discount is                  $43,934. |   |  $                  2,256,066       |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $61,000 dated June 9, 2006.                  The note bears interest at the rate of 6% per annum, and is due                  in full on June 9, 2007. Upon maturity, the note and accrued interest                  are convertible into common stock of the Company at the lower                  of the fair market value of the Company's common stock at the                  date of conversion or $0.33 per share. The minimum price at which                  the note and accrued interest may convert is $0.15 per share.                  The Company determined the value of the embedded beneficial                  conversion feature of this note payable at the time of issuance                  to be $0.                                                                                                                                                                                                                                                                                                                                                                                                           |   |  61,000                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Note                  payable in the amount of $50,650 for an                  auto loan. This note is                  dated June 14, 2006, and is payable in 60 equal monthly installments                  of $924. This note bears interest at the rate of 5.9%                  per annum, and is guaranteed by the Company's chairman. During                  the three months ended December 31, 2006 the Company received                   a                  refund check in the amount of $2,583 which was applied to                  the outstanding                  loan amount. During the three months ended December  31,                  2006, the Company made three payment on this Note, consisting                   of                  interest of $679 and principal of $2,094.                                                                                                                                                                                                                                                                                                                                                                                    |   |  43,041                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $30,000 dated March 16, 2006 payable to a board                  member. The note bears interest at the rate of 6% per annum,                  and is due in full on April 1, 2007. Upon maturity, the note                  and accrued interest are convertible into common stock of the                  Company at the lower of the fair market value of the Company's                  common stock at the date of conversion or $0.32 per share.                  The minimum price at which the note and accrued interest may                  convert is $0.15 per share. There was no beneficial conversion                  feature embedded in this note at the time of issuance.                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |  30,000                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Capital                  lease in the amount of $13,291 for                  furniture located the Company's                  corporate office. The lease calls for payments of $360 per                  month for 44 months; the final payment is due April 15, 2009. During                  the three months ended December 31, 2006, the Company made                  three payments in the aggregate amount of $1,080, consisting of                  principal of $853 and interest of $227.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |  8,942                              |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $22,500 dated December 20,                  2006. The note bears interest at the rate of 7% per                  annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |  22,500                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $22,500 dated December 20,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |  22,500                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $30,000 dated December 20,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |  30,000                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $15,000 dated December 24,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 pershare.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |  15,000                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
| Convertible                  note payable in the amount of                  $15,000 dated December 27,                  2006. The note bears interest at the rate of 7% per annum, and                  is due in full on December 20, 2007. When the Company’s common                  stock reached $0.20 or above for a period of 10 consecutive days,                  the principal and accrued interest due under the note will convert                  into common stock of the Company at a rate of $0.15 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |  15,000                             |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |
|  Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   $                  2,504,049 |    |
|  Less:                Short-term portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |  (184,608                           | )  |
|  Long-term                portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |  $                  2,319,441       |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     |    |

----

**INFLATION**

**OFF-BALANCE        SHEET ARRANGEMENTS**

----

**ITEM        3. CONTROLS AND PROCEDURES.**

**PART        II - OTHER INFORMATION**

ITEM

ITEM

| **Holder                    Name**        | ** ** | ** ****Date                    issued** | ** ** | ** ****Number                    of  Shares** | ** ** | ** ****Total                    Price** | ** ** | ** ****Type                    of Consideration** |
|-------------------------------------------|------------|----------------------------------------------|------------|---------------------------------------------------------|------------|----------------------------------------------|------------|--------------------------------------------------------|
| Robert                  Ford              |       |  October                    18, 2006    |       |  230,769                                           |       |  24,231                                 |       |  Officer salary                                   |
| Stephen Young                             |       |  October                    18, 2006    |       |  230,769                                           |       |  24,231                                 |       |  Officer salary                                   |
| Michael Jones                             |       |  October                    18, 2006    |       |  76,923                                            |       |  8,077                                  |       |  Officer salary                                   |
| Eric Hopkins                              |       |  October                    27, 2006    |       |  73,106                                            |       |  6,832                                  |       |  Services rendered                                |
| Richard Strain                            |       |  November                    8, 2006    |       |  520,939                                           |       |  69,000                                 |       |  Accrued interest                                 |
| Redwood                  Investment Group |       |  November                    8, 2006    |       |  480,000                                           |       |  40,800                                 |       |  Services                  rendered               |

| ·   | directly                by us to persons with whom management had direct contact and personal                relationships; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|
| ·   | to                persons who were introduced to us by members of our                management. |
|--------------------|--------------------------------------------------------------------------------------------------|

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ITEM

ITEM

ITEM

ITEM        6.        EXHIBITS

| 2.             |   | Asset                  Purchase Agreements dated March 29, 2006 between Synkronus, Inc.                  and                  SpeedFactory,                  Inc. (1)                                                                                                        |
|----------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1            |   | Articles of Incorporation (2)                                                                                                                                                                                                                                                |
| 3.2            |   | Certificate of Amendment to Articles                of                Incorporation, as filed on May 15, 2000                (3)                                                                                                                                             |
| 3.3            |   | Certificate of Amendment to Articles                of                Incorporation, as filed on March 13,                2001 (2)                                                                                                                                           |
| 3.4            |   | Certificate of Amendment to Articles                of                Incorporation, as filed on May 5, 2003(2)                                                                                                                                                              |
| 3.5            |   | Certificate of Amendment to Articles                of                Incorporation as filed on January 21,                2005 (3)                                                                                                                                          |
| 3.6            |   | Amended and Restated By-Laws (4)                                                                                                                                                                                                                                             |
| 10.1           |   | Wholesale DSL Agreement dated November                17,                2005 between Bell South                Telecommunications, Inc. and Synkronus, Inc. (d/b/a                SpeedFactory)(5)                                                                          |
| 31             |   | Certificate of the Principal Executive                Officer and Principal Financial Officer                pursuant to Rule 13a-14(a) or Rule 15d-14(a) as adopted pursuant                to                section                302 of the Sarbanes-Oxley Act of 2002. |
| 32             |   | Certificate of the Principal Executive                Officer and Principal Financial Officer                pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section                906                of Sarbanes-Oxley Act of 2002.                              |
| ______________ |
|           |   |                                                                                                                                                                                                                                                                         |
| (1)            |   | Incorporated by reference to the exhibit                to                the Company's Current Report on Form                8-K filed on April 12, 2006.                                                                                                                   |
| (2)            |   | Incorporated herein by reference to                the                exhibits in the Company's Annual Report                on Form 10-KSB for the year ended March 31, 2003.                                                                                               |
| (3)            |   | Incorporated                  herein by reference to the exhibit in the Company's Current Report                  on Form 8-K for an event dated January 21, 2005.                                                                                                           |
| (4)            |   | Incorporated                herein by reference to the exhibits to the Company's Quarterly                Report                on Form 10-QSB for the period ended September 30, 2004.                                                                                      |
| (5)            |   | Incorporated herein by reference to                the                exhibits to the Company's Quarterly Report                on Form 10-QSB for the period ended June 30,                2006.                                                                            |

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**SIGNATURES**

|                                        |                                                                                                                |                                                                                                                                                                                                                                                                                          |
|---------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        | **NextPhase                  Wireless, Inc.**                                                                       |
|                                   |                                                                                                           |                                                                                                                                                                                                                                                                                     |
| Date: February                20, 2007 | By:                                                                                                       | /s/                 Robert                Ford                                        |
|                                        | Robert Ford                                                                                                         |
|                                        | President                and                Chief Executive Officer(and principal financial                officer) |

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