Wi-Fi is everywhere these days: the amount of data transmitted through it combined with the number of devices connecting to it, is ever increasing. Virtually all buildings are expected to provide Wi-Fi access for their guests and customers. Large events such as the Super Bowl, or large concerts can attract over 70,000 attendees. These events are expected to provide a fast, smooth, and reliable Wi-Fi connection. Providing Wi-Fi to a large number of devices and usersrequires a different system than your typical household router. One analogy is to compare it to a road system. Standard Wi-Fi and router systems are like a one lane road; with few cars, speed is not affected. However, when there are hundreds of cars,high traffic causes things to slow down. In Wi-Fi, these roads are the channels in which the signal/data travels. Adding more lanes on roads is required for more traffic; with Wi-Fi, adding more channels allows for more devices to transmit data without being slowed down.
Edgewater Wireless Systems Inc. (TSX-V: YFI) is a company that provides solutions to this data traffic problem. Edgewater’s WiFi3 provides the highest channel density on the market. What this means is that WiFi3 requires fewer points of access inside a building to deliver fast Wi-Fi to large number of users, reducing the cost of establishing or upgrading a wireless broadband or mobile network. There has been an increased interest in the potential for Edgewater’s WiFi3 technology to be used in other equipment.
On Thursday, March 5th, 2015, Edgewater Wireless announced a high-density development kit in response to demand from a Fortune 500 Company for its patented technology. Edgewater has also announced that the launch of their WiFi3 development kit will allow OEMs (other equipment manufacturers) to develop and license Edgewater’s patented WiFi3 multi channel Wi-Fi Technology.
The development kit will allow for an easy integration of the WiFi3 technology into various products such as Access Points, Small Cells, Distributed Antenna Systems, and Networking Hardware. This strategic move by Edgewater will allow their technology to be distributed and used in higher volumes, and unlocks the potential for WiFi3 to be the leading solution to Data traffic problems that our increasing use of Internet connected devices brings.
The announcement references “With the average tech user carrying 2.9 wireless devices and the growth of the Internet of Things (IoT), the density of Wi-Fi clients is growing at a staggering pace,” said Duane Anderson, Chairman and Chief Technology Officer for Edgewater Wireless. “Edgewater’s WiFi3 Development Kit is specifically geared toward OEM’s / vendors struggling to address the growing Wi-Fi client density issue while delivering the quality of service required by sensitive applications like VoWiFi.”
Additionally, after some research on the US Patent and Trademark Office website, it was learned that Edgewater’s press release on January 8th, 2015, referenced a sale of their patent to a “major handset and tablet manufacturer”, which turns out to be the tech giant Apple Inc. (NASDAQ: AAPL). As referenced in the announcement, the patent was for a non-core piece of technology, and if just one of 23 patents wanted to be acquired by a major player, “it shows we’ve developed something truly world class” CTO of Edgewater Duane Anderson. When this was released, President and CEO Andrew Skafel stated “Edgewater is building world class Wi-Fi technology and this is just one of those 23 current patents we currently own. We plan to build on this deal and continue with the technology licensing side of our business.”
The company has also recently updated their website which, compared to the previous one, has more of a focus on high density WiFi.
As of market close of Friday, March 6th, 2015, Edgewater Wireless had a current market cap of $9.6 million. The company has improved its EPS between 2013-2014 by 400%, and this new development kit will open up new potential for larger revenues through a licensing structure.
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About Edgewater Wireless:
Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced product solutions designed to meet the high-density, high quality of service (QoS) and high-reliability needs of service providers and their customers. Leveraging over twenty (20) patents, Edgewater’s WiFi3 is redefining Wi-Fi technology with its wide-band, multi-channel radio and high-capacity Access Point solutions, and delivering next generation WiFi, today. For more information, please visit www.edgewaterwireless.com.
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