KarlNet's primary expertise is software that replaces or supplements the Media Access Control (MAC) portion of 802.11-based systems with a MAC that is optimized for longer ranges and contention control. The "stock" 802.11 MAC is optimized for short range usage. KarlNet's TurboCell enabled a Lucent/Agere/Proxim 802.11b Access Point to be usable as a very effective "Customer Premise Equipment" device for numerous Wireless ISPs.
YDI has always done software to some extent, but nothing approaching the expertise of KarlNet. YDI is a pioneer of "extending" Wireless Local Area Network (WLAN) equipment for outdoor use by Wireless Internet Service Providers (WISPs) though it has branched out considerably from repurposed WLAN equpiment in recent years in mergers with Telaxis and (pending) Terabeam.
There are two problems with a YDI Wireless / KarlNet merger, however.
The first is that KarlNet is located near Columbus, Ohio. The "crown jewels" of KarlNet is the wetware between the ears of the KarlNet principals and developers. They're not likely to be willing to relocate - the Columbus area is a pleasant, reasonable-cost place to live. Hopefully YDI Wireless will leave KarlNet's operations intact in Ohio.
The second problem is that much of KarlNet's value is in having licensed their technology to a number of radio manufacturers - YDI Wireless was merely one of many such companies. Now KarlNet/YDI Wireless is in direct competition with its licensees. (KarlNet has, off, and on, and off, and on again offered radio+software systems for sale, but not on a scale to cause much alarm with KarlNet's licensees. YDI Wireless owning KarlNet's technology is a completely different situation.)
Again, overall, YDI Wireless and KarlNet is a very good fit. KarlNet was having trouble scaling to retain its relative position in a small industry that was rapidly getting larger and demanding more complex products. YDI Wireless is subject to the same effects and needs KarlNet's software expertise to grow rapidly to keep pace with its rivals. YDI Wireless has been dismissed by some of its competitors as "just a box assembler"; the clueful acquisition of KarlNet gives lie to such simplistic pronouncements.
(My thanks to Sam Churchill's excellent DailyWireless.org weblog for the initial notice of this story.)
Copyright (c) 2004 by Steve Stroh. This article originally appeared on Corante / Broadband Wireless Internet Acccess.
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