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October 14, 2008

Quantenna: Radical New Design or Great PR?

The folks at Quantenna made a splash with their "1 Gbps" Wi-Fi announcement today: Venture-backed chipmaker Quantenna says that they have a tiny chip that should make it easier and cheaper to push high throughput Wi-Fi around a home using wall-outlet adapters. The company claims 450 Mbps of throughput from the highest-end Draft N standard (600 Mbps raw), and that it has a 1 Gbps wireless offering that uses multiple bands and channels to achieve throughput. There's not enough detail to know how proprietary that is, or if it's a form of channel bonding.

Quantenna announced three chipsets and a reference design: simultaneous dual band at raw rates up to 1 Gbps, 5 GHz at up to 600 Mbps, and 2.4 GHz at up to 450 Mbps. The reference design is for a compact wall outlet Wi-Fi extender.

The company said it's using a proprietary version of the 802.11s mesh protocol to allow devices to interact with each other. Quantenna's focus appears to be on spreading signals across a house, such as with streaming high-definition, where lots of bandwidth will be needed as telcos, satellite operators, and cable firms deliver HDTV into homes today, but plan much more in the future. Storing HD and then being able to have multiple live streams sent among devices is apparently the wet dream of those involved in home entertainment.

You can be clever about pushing HD around a home (like Ruckus) or brute force it by flooding an area with high throughput like Quantenna, which isn't a bad strategy, but it's an interesting one. The fact is that there are already market solutions that don't require 450 Mbps of net throughput. The segment they're looking at seems too well developed and small for them to capture a sizeable chunk when products based on their design are released in mid-2009. And as a startup, their ability to sign deals with firms that sometimes take 1 to 2 years to negotiate and sign makes me wonder; their investors might be brokering those deals to make them conclude faster.

Small, integrated chips make a big splash because they reduce the battery drain on mobile devices, allow the use of these chips in handhelds, and can dramatically drop the cost of manufacture both through a reduced bill of materials and reduced assembly costs. Quantenna told several sources that they expect to charge $20 for a single-band chipset and $40 for a dual-band chipset in quantity. For chipmakers these days, that can mean from 100,000 to 1m before the price drop happens. (It used to mean much more, but efficiencies have improved in smaller lots of chipmaking, apparently.)

I've followed chip announcements in the Wi-Fi space for years, and small startups that have unique offerings tend to either get swallowed up in short order (Airgo into Qualcomm) or disappear (the very promising Engim\). Atheros, Broadcom, Qualcomm, Texas Instruments, Marvell, CSR, and a few others own the market, and that's just how that is. Chipmakers in this industry segment needs millions and then tens of millions of sales to make it possible to recover their R&D costs while sinking money into future R&D for the inevitable next generation.

(Airgo, I might note, was sucked into Qualcomm and sunk without a trace, although it's likely their patents were part of what was of interest; their approach to building MIMO systems was probably integrated into other product lines and multi-standard chips.)