Novatel Wireless Inc. – one of the leading manufacturers of wireless data modems – launched MiFi Home, which connects digital telephone service and data access through a portable device. It can support up to 10 Wi-Fi based devices along with three Ethernet ports for connecting printers and network storage devices.
The device is also helpful for small businesses as it supports Voice over LTE (VoLTE). The VoLTE features video calling, multi-device and multimedia sharing services across mobile broadband devices. Moreover, the device allows users to connect to Internet and voice services like caller ID, call forwarding, call waiting, call holding and three-way calling.
The MiFi device also features Wi-Fi security as it is well protected with NAT firewall and also has internal and external antenna for better voice and data support. Moreover, it also offers A-GPS for E911 and 802.11 a/b/g/n 2.4 GHz and 5 GHz Wi-Fi support.
Novatel already supplies its LTE-based MiFi devices to the top three carriers in the U.S., namely, Verizon Communication Inc. (VZ - Free Report) , AT&T, Inc. (T - Free Report) and Sprint Corp. (S - Free Report) . Verizon will soon launch MiFi 4620 LE with an extended battery pack while AT&T is using the MiFi 2 products.
In order to boost its top line, the company is continuously upgrading its software and launching innovative devices in an attempt to drive the Mi-Fi usage. Recently, Novatel also introduced MiFi 500 LTE with Sprint.
However, the company is facing stiff competition from low-cost Asian manufacturers, including ZTE and Huawei Technologies. Moreover, in recent times, most smartphones have built-in hot-spot facilities, thus completely bypassing the need for any MiFi modem.
Recently, Novatel has decided to restructure its businesses. Management stated that the company is witnessing growing overlap of operations in its Mobile Computing and M2M business segments.
The proposed restructuring will streamline the research and development costs and consolidate manufacturing process of these two lines of operations and consequently drive long-term profitability.
Currently, Novatel Wireless has a Zacks Rank #3 (Hold).