Atheros pushes into PON FTTH with Opulan buy

One of the leading makers of chips for wireless broadband devices is making a move into the wireline world of passive optical networking fiber-to-the-home architectures. Atheros Communications has signed a definitive agreement to China-based, privately held Opulan Technologies for $72 million in cash.

The deal will help Atheros tap into FTTH opportunities at a significant time, as Infonetics Research has estimated that the PON market in particular is in the process of doubling between 2009 and 2014. The acquisition also will give Santa Clara, Calif.-based Atheros an important R&D and marketing foothold in Asia. (Atheros is set to gain about 111 employees in Shanghai and Beijing through the acquisition.)

Atheros already has some wireline technologies in the areas if Ethernet and powerline, but it has been primarily known as one of the leading lights in the Wi-Fi sector. Opulan has specialized in 1 Gb/s/10 Gb/s Ethernet PON solutions, and Atheros said it sees an opportunity to weave the two companies’ technologies into more integrated end-to-end, WAN-to-LAN solutions targeting the multi-device consumer broadband home.

The companies are aiming to close the deal in the third quarter.