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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote ()1/30/2000 4:08:00 PM
From: garyx  Read Replies (1) of 54805
 
Wi-LAN: An Enabling Technology Baby Gorilla?

Open Proprietary Enabling Technology allowing broadband wireless delivery at speeds twenty times competition

Warning: I have the flu. I may be feverish. But for some reason I can't get a small Canadian firm called Wi-LAN out of my head. Here's a summary of known info:

Wi-LAN has pioneered and patented a type of wireless network technology called Wideband Orthogonal Frequency Division Multiplexing or W-OFDM. W-OFDM allows broadband wireless communication of 40 mbps, and the second generation from Wi-Lan will increase that to 90 mbps. Apparently, this is enough for wireless video delivery, as well as out-doing every other possible standard in the wireless world.

It seems to be rapidly becoming the accepted standard. Many have compared Wi-LAN's ownership of a qualitatively better enabling technolgy, with QCOM's ownership of CDMA -- noting that Wi-Lan's W-OFDM will mean to wireless data transfer what QualComm's CDMA technology means to wireless communications. All the other competing technologies have effective speeds of 2mbps or less, while Wi-LAN's technology allows for 46 mbps to 90mbps to possibly more mbps. Current T-1 lines, by comparison, are 1.5 mbps. QCOM's most recent test of its HDR hoped to reach 2 mbps.

Apparently, Phillips has already licensed W-OFDM and is applying W-OFDM technology to its EDGE technology, which attempts to increase rates for GSM -- alone, this partnership could be worth 100 million clams within two years. Many players such as Lucent, Ericy, and Philips seems to be backing W-OFDM, but CISCO, playing catch up , is going to introduce products based on V-OFDM, which is vector-based OFDM. Watchers, however, believe that any high-speed wireless OFDM may impinge on WIN's patent. As well, vector based technology cannot work with mobile wireless connections, as one would need by connecting cars, buses, trains, etc.

Wi-LAN is following many of the lessons of Qualcomm. It intends to make money thru selling its intellectual property.
On Jan 27, Wi-Lan made its first public test, sending streaming video and transferring files between a node and a car going 70 miles an hour.

The creator of W-OFDM and the company owner, known affectionately as Dr. Z., often posts at the wi-LAN board
at SI. Here's what he had to say about wi-LAN's patent:
The first claim of our W-OFDM patent, US patent # 5,282,222, covers any use of wideband OFDM that requires the use of a channel estimator. This practically covers all uses of W-OFDM for high speed wireless communications. Because W-OFDM is the draft standard for many applications, it is not possible to circumvent the patent. However, patent enforcement is a big subject. Our technology lead is protected by an early start on the development of application specific integrated circuits which will make the product less expensive.

And here's what he said about the future:
Once true high speed mobile data is available, we will see a shift in the use of technology that may cause changes in social habits. Such shifts generate phenomenal market opportunities. We want to be there when that happens.


So I ask my wiser threadmates: What are your impressions?

basic article:

stockhouse.ca

Wi-LAN's broadband tech connects neighborhoods at 30mbps
techweb.com

list of articles:
wi-lan.com

chart and news
stockhouse.ca

Great FAQ
boards.fool.com
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