Airgain Signs Strategic Memorandum of Understanding With COMPAL, a Global Fortune 500 Leader, on Airgain’s 5G Smart FWA Technology

Rhea-AI Summary

Airgain (NASDAQ: AIRG) has entered into a strategic Memorandum of Understanding (MOU) with Compal Electronics (TAIEX: 2324), a global leader in smart device manufacturing, to commercialize Airgain's 5G Smart Fixed Wireless Access (FWA) technology, Smart Lantern™. The MOU aims to enable mass production of this technology, promising to enhance 5G customer experience and reduce installation costs for operators. Preliminary tests show over 25% improvement in performance and range compared to traditional FWA equipment. This partnership aligns with a projected $67 billion FWA market by 2028, growing at a 16% CAGR.

Positive

• Strategic MOU with Compal Electronics, a Fortune 500 company, potentially boosts credibility and market reach.
• Smart Lantern™ FWA technology shows over 25% performance improvement in preliminary tests.
• The FWA market is projected to reach $67 billion by 2028, growing at a 16% CAGR, indicating a strong market opportunity.
• Airgain's patented beamforming technology simplifies deployment and potentially reduces costs for mobile network operators (MNOs).
• Partnership could lead to significant OEM and ODM development opportunities for FWA devices.

Negative

• Commercialization is contingent on further evaluation and feasibility assessments, introducing potential delays or obstacles.
• Initial projections and enthusiasm do not guarantee market adoption or financial success.
• Potential high initial investment in technology development and partnership execution may strain financial resources.

Insights

Tech Expert

The Memorandum of Understanding (MOU) between Airgain and Compal underscores a significant technological advancement in the realm of 5G Fixed Wireless Access (FWA). The deployment of Airgain’s Smart Lantern™ technology, which utilizes patent-pending smart beamforming, promises a 25% improvement in throughput and range compared to traditional FWA devices. This is noteworthy because higher efficiency and performance can directly lead to reduced costs for operators and better service quality for end-users. Additionally, the capability to automatically determine the optimal signal direction minimizes installation complexities, which is a unique selling point in the market.

Financial Analyst

From a financial perspective, this strategic partnership aligns well with the projected growth of the FWA market, which is expected to reach $67 billion by 2028. The compound annual growth rate of 16% indicates robust market demand. Airgain’s collaboration with a Fortune 500 company like Compal provides them with a credible partner to scale production, which could translate into significant revenue growth. Investors should note that successful commercialization of this technology could enhance Airgain’s market position and profitability, though the exact financial impact will depend on execution and market adoption.

Smart Lantern^TM will enhance customer experience and reduce operators’ installation costs

SAN DIEGO--(BUSINESS WIRE)-- Airgain, Inc. (NASDAQ: AIRG), a leading provider of wireless connectivity solutions, has signed a strategic Memorandum of Understanding (MOU) with Compal Electronics, Inc. (TAIEX: 2324), a global fortune 500 leader in smart device manufacturing, on a comprehensive plan for commercialization of a 5G Smart Fixed Wireless Access (FWA) technology.

Yiyun Chang, Vice President at Compal Electronics, Inc. (left), shaking hands with Dr. Ali Sadri, CTO of Airgain, Inc., after signing a strategic MOU. (Photo: Business Wire)

The agreement signals a major step towards enabling mass production of this transformative technology which has the potential to substantially enhance 5G customer experience and mobile network operator (MNO) capabilities.

Airgain Smart Lantern^TM uses patent-pending smart beamforming technology to simplify end-user FWA deployment as well as reducing truck roll and professional installation, by automatically determining the direction of the best received and transmitted signal from the 5G cellular base station (gNb).

Preliminary testing results indicate a performance enhancement exceeding 25% in both throughput and range when compared to conventional indoor and outdoor omnidirectional Fixed Wireless Access (FWA) Customer Premises Equipment (CPE).

The MOU commits the two companies to a collaboration which will see them evaluate the technology’s 5G KPI enhancements and assess the feasibility, effectiveness, and opportunities for original equipment manufacturer (OEM) and original device manufacturer (ODM) for FWA device development.

At the heart of the innovation is Airgain’s first-of-its-kind smart antenna technology for 5G mid-band and C-band frequencies, and novel beamforming algorithms. When combined with COMPAL’s expertise in developing FWA modules leveraging leading 5G chipset providers, this will deliver a powerful value proposition to their customers.

According to the forecast presented in the Ericsson Mobility Report, the Fixed Wireless Access (FWA) market is projected to reach a valuation of $67 billion by the year 2028, which equates to a Compound Annual Growth Rate (CAGR) of 16% year-over-year. Smart Lantern's FWA technology holds the potential to significantly drive the adoption of FWA technology among Mobile Network Operators (MNOs).

Dr. Ali Sadri, CTO of Airgain, Inc., heralded the MOU as a significant moment in bringing Smart Lantern^TM to market, adding:

“As we embark on this ground-breaking journey towards enabling commercialization, the signing of this MOU with COMPAL signifies a strategic leap forward in realizing the full potential of our innovative product, Smart Lantern^TM.

“Having demonstrated its feasibility and generated tremendous excitement at Mobile World Congress, this MOU underscores our commitment to translating that enthusiasm into tangible market success. This momentous partnership solidifies Airgain's position as a trailblazer in delivering cutting-edge solutions that shape the future landscape of wireless communication.”

Yiyun Chang, Vice President at Compal Electronics, Inc., said:

“COMPAL’s mission is to foster collaborative innovation and make ideas happen. Our collaboration with Airgain is built on shared dedication to pushing the boundaries of what's possible in the telecommunications industry. We are confident that this partnership will not only meet but exceed the expectations of telecom equipment manufacturers (TEMs), MNOs, and system integrators (SI).

“Together, we are poised to redefine the standards and capabilities of wireless communication, reinforcing COMPAL’s commitment to delivering state-of-the-art solutions that shape the future of connectivity.”

For more information about Smart Lantern^TM visit airgain.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530558164/en/

Airgain Media Contact

Martyn Gettings +44 7831 158416

pr@airgain.com

Source: Airgain, Inc.

FAQ

What is the significance of Airgain's MOU with Compal Electronics?

The MOU aims to commercialize Airgain's 5G Smart FWA technology, potentially enhancing 5G customer experience and reducing installation costs.

How does Airgain's Smart Lantern™ technology improve 5G FWA performance?

Preliminary tests indicate a performance boost of over 25% in throughput and range compared to traditional FWA equipment.

What is the market projection for the Fixed Wireless Access (FWA) industry?

The FWA market is expected to reach $67 billion by 2028, growing at a 16% CAGR.

What are the potential benefits of Airgain's partnership with Compal Electronics?

The partnership could enhance credibility, market reach, and lead to significant OEM and ODM development opportunities for FWA devices.

What are the potential risks associated with Airgain's MOU with Compal Electronics?

Risks include potential delays in commercialization, uncertain market adoption, and high initial investment costs.