Wavesat and picoChip Pick up LTE Interoperability Testing Efforts

| Mar 26, 2010 | Mobile Device Silicon | Analyst: Ron Westfall

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Event Summary

March 24, 2010 – UK-based picoChip and Wavesat have signed a MoU to conduct LTE interoperability testing, leading to the potential availability of fully-tested 4G network solutions. This cooperation combines picoChip’s expertise in developing scalable, multi-processor base station and femtocell baseband LTE chipsets and Wavesat’s high-performance, low-power LTE UE silicon. LTE network operators, systems integrators and OEM/ODM system manufacturers could benefit from the availability of the combined, tested technologies.

Quick Take

Analytical Summary

• Current Perspective: Moderate on Wavesat and picoChip teaming up on an LTE interoperability testing regime that encompasses Wavesat’s LTE UE silicon technology and picoChip’s LTE femtocell/base station silicon technology. The latest partnership initiative sustains the history of effective cooperation between the companies, but both companies must prove the partnership potential within the LTE realm will translate into new tangible shipment and revenue gains over the next few quarters.

• Vendor Importance: Moderate to Wavesat and picoChip since both companies needed to promote their partnership efforts within the burgeoning 4G silicon market segment, especially with regards to LTE interoperability initiatives, since the LTE silicon market represents a new level set of competition and the nascent stages of commercial deployments of a relatively new technology, such as LTE, rely more heavily on interoperability testing validation.

• Market Impact: Moderate to the overall mobile silicon market since the Wavesat/picoChip partnership is non-exclusive and the partnership still must prove it will yield new tangible market gains for both companies within their respective areas of focus. Thus picoChip’s femtocell and base station LTE silicon rivals and Wavesat’s LTE UE silicon rivals can adopt measured competitive and marketing responses as the direction and progress of the partnership unfolds.

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Competitive Positives and Concerns

Response & Recommendations

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