Beammwave, a small telecom company with huge potential

2025-01-08 05:58

Beammwave, a small telecom company with huge potential heading for the big breakthrough. Will we see one of the biggest telekom companies sign up for their solution during 2025?

Beammwave is in my stock portfolio as a wild card and 2025 could be the breakthrough year. High risk, but huge potential if they succeed, which many signs now indicates.

The company says that they have ongoing dialogs with most of the biggest telecom companies in the world. Serveral customers are now eveluating their solution and customer products with their unique mmWave chip are expected to start selling as early as 2025.

The market value is only 150 MSEK (12 MEUR/$14M) at share price 5 SEK and the cash position is just under 50 MSEK after a capital increase in December of 29 MSEK, which should secure operations until chip sales start to gain momentum in 2026.

Despite being a small company, Beammwave has a very competent team, including the following members:

• CEO - Had a driving role in the development and the global success of Bluetooth.

• CTO - Background from Ericsson and responsible for more than 2000 patents.

• Chairman of the Board - Had a leading role in the sale of the company C3 Technologies to Apple.

• 3GPP representative - The company is a very active member of 3GPP, the body that decides the future of telecom standards (5G, 6G ...). The representative also has a background from Ericsson but "only" has 600 patents in his portfolio.

-- Summary about Beammwave:

Beammwave (BEAMM B) is a Swedish startup in the telecom sector, on the verge of a global breakthrough with its unique solution to improve the use of mmWave, the possibility of getting super-fast data traffic, and solving the capacity problem in 5G networks.

The areas of application for Beammwave's solution are vast:

• Mobile phones

• Base stations in mobile networks

• Fixed wireless internet connection (FWA)

• Satellite communication

• Radar applications

• Wifi 8 will include mmWave

Sales began in 2024 and currently, 4 major companies are evaluating their product. Analysts have estimated the addressable market for mobile phones alone to be 25-50 billion SEK.

Simple description of Beammwave's solution:

With more and more video applications for mobile phones in mobile networks, there is a capacity problem in many parts of the world. The 5G standard tries to solve this by adding the use of higher frequencies (mmWave). However, high frequencies are difficult to handle and require advanced signal processing to function satisfactorily.

Simply put, there are two ways to solve signal processing: "A" and "B". Everyone in the industry agrees that "B" is by far the best solution, but since it was believed that "B" was impossible to do in such small energy-efficient units, every company has implemented "A". However, "A" performs poorly, which means that higher frequencies in mobile phones increasingly appear as a flop.

Beammwave's founders realized over 10 years ago that "A" would fail and began developing "B". With successive advances in technology and by carefully selecting some of the best in the industry to form a "dream team", Beammwave has developed "B" and is now in 2024 ready with a version of "B" that is at least as energy-efficient, smaller, cheaper, and with much better performance than "A". The solution is protected by over 40 patents written by some of the best in the industry, which can make competition significantly more difficult.

All major companies in the industry use "A" (Apple, Samsung, Huawei ...) but many have followed the development with curiosity and recurring conversations with Beammwave during the development of the solution. In recent months, several companies have begun signing agreements to evaluate "B".

The companies include:

1) An "anonymous" Asian company that supplies, among others, Apple and Samsung. (November 2024)

2) A Taiwanese company (Alpha Networks) that manufactures equipment for fixed wireless broadband and hopes to gain market share by improving its modems and switching from "A" to "B". (December 2024)

3) The Swedish defense company Saab has started a collaboration with Beammwave to integrate "B" into its military products and thereby save significant development costs. (November 2024)

4) Molex, a large American company, has been developing prototypes with "B" for a year and is soon ready for real products (Beammwave's first customer, January 2024)

"A" = Analog beamforming.

"B" = Distributed digital beamforming.

-- Common misconceptions:

1) Does the 5G standard need to be changed to use "B"?

No, "B" fully follows the 5G standard and can be used directly with existing mmWave base stations.

2) Do you need a clear line of sight and good weather for mmWave to work?

No, with "B", signals from all antennas are combined, and even reflected signals are captured. However, with "A", you have this problem.

3) I find other companies that also have solutions for digital beamforming, is Beammwave really the first?

There are a handful of other companies with solutions for digital beamforming, but they all have in common that their solutions are designed for military or satellite-based applications, where cost and size are not critical. Beammwave's solution is small and cheap - a chip of 3x3 mm that costs 1-2 USD per piece. Depending on the application, different amounts of 1-2 chips up to 1000 chips are required.

4. Isn't there a risk that large companies like Qualcomm, Samsung or Apple will soon catch up with an equally good solution?

If someone manages to get around all of Beammwave's patents and still come up with an equally good solution, it will hardly be a cheap solution. This does not mean that the market and value for Beammwave's solution disappear, but only that you share the pie, which will still be large sums of money. In addition, Beammwave's solution can be applied in many different areas with only software adjustments, which is not the case with other expensive solutions specifically adapted for mobile phones.

This company presentation is recommended:

https://m.youtube.com/watch?si=s4Yo69cMYl8AneYZ&v=AQVrmud-CRI&feature=youtu.be

Ticker:

Sweden (Stockholm First North): BEAMMW B

USA: BEAMMW-B.ST

Germany: WKN: A3DSKU (Frankfurt)

Website: http://www.beammwave.com