Broadcom to buy Percello

Chipmaker Broadcom has announced that it has hatched out an agreement to buy the privately-held system-on-a-chip (SoC) maker Percello for $86 million.

Percello makes SoC gear for femtocells which are small, low power cellular base stations that extend coverage indoors where signals are weak.

It apparently has been selling well among residential and enterprise business users. The femtocells communicate with a service provider’s network through a broadband connection, allowing users to continue using their mobile devices without losing connectivity.

According to Broadcom, owning the outfit will mean that it can cut the costs and accelerate the time to market for femtocell technology.

Percello uses an energy-efficient and cost-optimised femtocell architecture. It is basically a fabless semiconductor company which has been operating since 2007. Its digital baseband processors use WCDMA and LTE Femtocells.

Greg Fischer, Vice President and General Manager of Broadcom’s Broadband Carrier Access line of business said that as wireless data usage expands, this technology is going to get more important.

Subscribers are going to want to have better cell reception in the home and office, Fisher said.

The Femtocell market has been getting bigger in 2010 with more than 1 million femtocells global shipments expected by conservative estimates this year.

By 2015 more than 50 million femtocells are expected to be sitting in the shops waiting to be bought.

Aditya Kaul, Practice Director, Mobile Networks, ABI Research said the whole industry is being driven by the consumers’ desire to be connected at all times.