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QCOM to Boost Device Bandwidth

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To improve the usage of 802.11ac wireless technology, Qualcomm Atheros, Inc., the business arm of Qualcomm Inc. (QCOM - Free Report) , will integrate it with Qualcomm’s StreamBoost routers based on VIVE technology. This will boost the bandwidth requirement for home and mobile devices.

Increased deployments of 3G/4GLTE technology along with higher usage of smartphones and tablets have increased demand for uninterrupted and fast data usage. Moreover, watching videos on HD format is also gaining huge popularity, thereby increasing network congestion.

Now users have enough options to do multiple tasks simultaneously on tablets, smartphones as well as on PCs, connecting seven devices on an average to a particular network through routers. This reduces the network speed further.

To address such issues, Qualcomm will be using the new 802.11ac wireless networking standard also known as 5G Wi-Fi technology to offer three times faster data transfer speed than the earlier 802.11n standard. Qualcomm’s new StreamBoost routers powered with VIVE 802.11ac technology will offer speeds up to 1.3 Gbps It will provide better streaming services and will also allow more than 20 users to play games online. Moreover, it also saves battery life, thus, improving the performance of the Qualcomm based devices.

Qualcomm’s StreamBoost technology was revealed in the beginning of 2013 and is expected to ship from this summer ntegrated with its home routers.

Qualcomm’s mobile chipset business has already gained huge traction and  is widely used in Google Inc.’s Android-based devices and Apple Inc.’s (AAPL - Free Report) iPhones. The company is ranked third in the semiconductor industry, behind the market leader Intel Corporation (INTC - Free Report) and Samsung Electronics.

However, the company started to diversify its business by acquiring Atheros Communications Inc., which specializes in developing Wi-Fi chips for home appliances. So, integrating advanced technology with its home devices will further boost revenues for the company, going forward.

Currently, Qualcomm carries a Zacks Rank #3 (Hold).

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