We at Ubiquisys were delighted by Broadcom’s announcement to acquire Percello, the UMTS femtocell System on a Chip (SoC) supplier.
Firstly it underwrites Percello’s credibility by removing the concerns mobile operators have expressed over the supply chain aspects of boutique Private Equity backed SoC companies.
Secondly, the capability Broadcom brings to the mix, particularly in the consumer space, has the potential to significantly enhance the existing Percello femtocell SoC offering.
We at Ubiquisys selected Percello for our second generation of femtocell devices back in 2008, having done a thorough analysis of all femtocell SoC suppliers, and having concluded Percello offered the best in class SoC for UMTS femtocells in terms of performance, price and energy footprint. For our first generation of femtocells we used picoChip’s SoC.
To produce a credible market share number for SoC in the UMTS femtocell sector the easiest approach is to look at the major deployments underway in US, Japan and Europe. Knowing the market well, our assessment is that Percello currently has approximately 50% of the UMTS SoC femtocell market. This is likely to rise in 2011 even with the entrance in to this sector of Qualcomm.
Looking forward to LTE, pretty much all of the world-class System on a Chip suppliers have recognised the importance and exponential growth opportunities of the femtocell sector, so we can look forward to a healthy and competitive landscape in the coming years.