Broadcom to Buy a 4G Strategy Via Beceem
Beceem started as a WiMax supplier but has branched into developing dual-mode offerings that can combine WiMax with next-generation technologies like LTE or time-division LTE (TD-LTE). In February, the company announced that it has an LTE and WiMax combo chip.
Beceem has scored some notable WiMax wins, most recently with its BCSM250 chip being found in the Clearwire LLC (Nasdaq: CLWR) Rover Puck personal hotspot. (See Beceem Racks Up WiMax Device Wins.)
Beceem had filed for a $100 million IPO in April on the strength of its WiMax and "4G" orders. This exit by acquisition will likely be noted with interest by other chip startups, such as Altair Semiconductor and Sequans Communications . (See Challengers Shake Up LTE Chips .)
The deal gives Broadcom a ready-made and much-needed entry into the LTE and WiMax markets. For a couple of years, the company had been silent on how it would compete with Qualcomm and others in the "4G" market. (See What Is Broadcom's LTE Strategy?)
Certainly, the LTE market is now more competitive than it appeared to be even six months ago. Qualcomm is sampling product, a number of startups and phone vendors are developing their own LTE modems, and Intel is getting in the game through its Infineon Technologies AG (NYSE/Frankfurt: IFX) buyout. (See Intel Looks to Infineon for the Full SOC.) — Dan Jones, Site Editor, Light Reading Mobile