Google-backed Ubiquisys picks Intel processors

HELSINKI: Ubiquisys, a technology start-up backed by Google, has picked Intel's processors to boost computing power in its small base stations, which help operators to meet demand from surging mobile data consumption.

The new offering - which will also use chips from Texas Instruments - will reach the market in 2012.

UK-based Ubiquisys is one of the top firms in the new market for small cells, low-power base stations for 3G mobile phone networks that offload some of the traffic from operators networks and improve indoor coverage at a comparatively low cost.

Intel's processors will bring computing power to telecommunications networks -- close to consumers, cutting need for back and forth data traffic, Ubiquisys said.

With smartphone prices dropping fast and the use of video on phones proliferating, most telecom operators around the world have been struggling with network capacity and many have started to use small cells to open up the airwaves.

Research firm Mobile Experts expects the market for such small cells -- open for public to use -- to reach 7 million units in 2013 and grow to 15.5 million by 2016.

The devices are plugged into broadband internet connections like wireless Internet base stations and allow users to make calls or use data services with their regular mobile phones.

Ubiquisys's main rivals are Alcatel-Lucent and Huawei. In addition to Google, Ubiquisys's owners include Accel Partners and T-Mobile's venture fund.