Broadcom Enters MOCA Market

Broadcom to acquire Octalica for technologies enabling advanced home networking over coaxial cable infrastructures

May 3, 2007

2 Min Read

IRVINE, Calif. -- Broadcom Corporation (Nasdaq: BRCM - News), a global leader in semiconductors for wired and wireless communications, today announced that it has signed a definitive agreement to acquire Octalica, Inc. Octalica is a privately-held fabless semiconductor company that specializes in the design and development of networking technologies based on the MoCA(TM) (Multimedia over Coax Alliance) standard, which enables distribution of high quality digital multimedia content throughout the home over existing coaxial cable. MoCA has emerged as a popular method for in-home multimedia distribution among cable, satellite and telecommunications service providers in the U.S., making Octalica's product portfolio a strong complement to Broadcom's industry leading set-top box and broadband access technologies.

More than 70% of homes in the U.S. have coaxial cable already installed into the home and many homeowners use cable as their primary network for entertainment, video, data and information services, making it ideal for deploying next generation networking services enabled by MoCA technology. With the increasing prevalence of digital content in the home (such as high definition (HD) video, personal video recording, the emergence of televisions capable of HD content playback, the growth in downloadable video and audio, and the pervasive use of digital photography) consumers want to experience and interact with this information at any time and in virtually any location within their homes. MoCA technology allows homeowners to utilize their existing coaxial infrastructure as networking systems to take advantage of these new applications and functionality throughout their homes.

With the adoption of MoCA as a key networking technology by most of the leading U.S. service providers, demand for the technology is expected to increase significantly, with makers of set-top box and broadband access products seeking to integrate MoCA functionality in a cost-effective and timely manner. Octalica's MoCA technologies will enable Broadcom to derive significant time to market advantages in the development of MoCA solutions for the in-home networking of multimedia content over coax.

With this acquisition, Broadcom is adding MoCA to the multiple other technologies it offers to address end users' connectivity needs worldwide for the distribution of digital content throughout the home, supplementing its industry leading Wi-Fi®, Ethernet, and Bluetooth® products, among others.

"MoCA is a key technology that has gained significant traction with our OEM customers and the major cable, satellite and telecommunications service providers in the U.S., who have shown a clear preference for in-home coax networking," said Dan Marotta, Senior Vice President and General Manager of Broadcom's Broadband Communications Group. "With Octalica's existing technologies and strong engineering team, Broadcom's ability to integrate MoCA solutions into our product roadmap will be further enhanced."

Broadcom Corp. (Nasdaq: BRCM)

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