Intel switch hits Proxim stock
Intel's decision yesterday to ditch HomeRF for WiFi (802.11B) standards in its home networking products shot down share prices on Proxim stock. Proxim, a licensor and supplier of HomeRF technology for other companies, saw prices fall $5.88 a share to $9 per.
Undaunted, Proxim says it can weather the storm, partly through a new and expanded distribution strategy, and noted that Motorola, Compaq Computer, Siemens and telecom providers have joined HomeRF. Proxim also informed Business Wire that Intel told Proxim it will continue to sell and support HomeRF 1.0 products and stay with the HomeRF Working Group. Proxim is set to deliver HomeRF 2.0 products, it reports.
Previously, Intel used the HomeRF standards on home products and WiFi on commercial ones. WiFi is also used by Apple Computer, Cisco Systems, 3Com and Lucent Technologies. Falling costs on WiFi have made it affordable to consumers and prompted Intel's move.
Still, The Wireless Ethernet Compatibility Alliance announced five new members, meaning the companies are achieving WiFi certification on their wireless LAN products, WECA announced.