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Because of the technological similarities between WiMAX and LTE, specialists in the former platform have argued that they will have a headstart in the second 4G standard too - especially in its TDD mode, favored in China and likely to become an increasingly important aspect of the LTE map as operators look for more TDD spectrum to support data-intensive applications. Motorola, in particular, has used its TDD WiMAX expertise to gain an early position in LTE trials such as China Mobile's, but a smaller 802.16 player, Sequans of France, is also reaping the benefits of its track record, attracting funding from Alcatel-Lucent and Motorola for its LTE development program.

The start-up announced this year that it would extend its business in chips for WiMAX base stations and devices into LTE, despite the greater challenges of competing in a market where giants like Qualcomm loom. Other WiMAX chipmakers are also looking to steal a march on 3G rivals, and add to their revenue streams, by adopting LTE too, though the fragmented segment is sure to undergo consolidation once LTE starts to mature. Altair, Comsys and even Beceem - which was later to announce an LTE strategy because of its high level of success in WiMAX devices - are all looking to span both 4G platforms.

Sequans will certainly be helped by a new injection of funds and the credibility that comes from the support of tier one vendors. It did not specify the amount that ALU and Motorola Ventures have stumped up, but said the money would help it accelerate its LTE development timeline, adding to the team, as it evolves its two product lines in parallel. It expects to have its first LTE samples early next year, in pre-commercial operator trials.

CEO Georges Karam commented: "Our long experience with operators and OEMs, combined with the tremendous base of knowledge we've accumulated over the last five years developing WiMAX silicon, puts us in an excellent position to deliver industry leading semiconductor solutions for LTE as we have done for WiMAX."

ALU already made a strategic investment of undisclosed size in Sequans, in 2007, part of the smaller firm's third round of investment, which totalled $24m and brought the company's total financing to $32m. It then added a fourth round of $28m in equity-based and convertible debt financing, in February 2008.

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