[Asia Economy Reporter Hyungsoo Park] Dabowlink is showing strong performance. As the importance of Wi-Fi 6E, essential for building the metaverse ecosystem, grows, it appears that this analysis has influenced the stock price. Dabowlink is a telecommunications equipment and solution development and sales company that has secured over 30% market share in the Wi-Fi solution market. Its main product is Wi-Fi AP equipment, currently supplied not only to the three major telecom companies but also to numerous enterprises and public institutions.
As of 9:50 AM on the 14th, Dabowlink is trading at 2,535 KRW, up 7.64% from the previous day.
Researcher Seonjae Heo of Yuanta Securities explained, "To build the metaverse ecosystem, ultra-high speed, ultra-connectivity, and ultra-low latency communication infrastructure are essential," adding, "Wi-Fi 6E, along with 5G wireless networks, can address these needs."
Wi-Fi 6E is a next-generation extended standard operating in the 6GHz spectrum, which is more than twice the operating frequency of existing Wi-Fi 6. It offers speeds and data throughput comparable to 5G, with low latency. It enables high-density data processing such as augmented reality (AR), virtual reality (VR), and 8K streaming. Even as 5G commercialization accelerates from next year, dependence on Wi-Fi, which offers lower data usage costs in offices, homes, industrial sites, schools, and public places, is expected to remain high.
Researcher Heo introduced, "Dabowlink's next-generation network equipment, the ‘Wi-Fi 6E AP,’ is gaining attention in scenarios requiring large amounts of data processing," adding, "It is essential communication infrastructure for the rapidly increasing data processing and the commercialization of the metaverse, which has recently attracted growing interest."
He continued, "Although the 5G sector has recently attracted attention as a core infrastructure for building the metaverse ecosystem, since it is designed to coexist with Wi-Fi, attention should also be paid to Wi-Fi-related equipment."
He expressed expectations, “From next year, Dabowlink’s Wi-Fi 6E AP equipment will be supplied to enterprises, public institutions, and educational institutions for the commercialization of augmented reality (AR), virtual reality (VR), and 8K streaming.”
Researcher Heo forecasted, "For Wi-Fi 6E to be commercialized, ▲terminals such as smartphones equipped with Wi-Fi 6E dedicated chipsets ▲Wi-Fi 6E dedicated APs ▲and wired networks are necessary," adding, "By next year, devices supporting Wi-Fi 6E, including PCs and smartphones like Galaxy S21 and iPhone 13, are expected to increase to about 340 million units." He also stated, "Dabowlink is developing Wi-Fi 6E dedicated APs that support the connection of these devices," and "the development of Wi-Fi 6E APs will be completed by the second half of next year at the latest."
The Ministry of Science and ICT has already allocated a budget of 18.5 trillion KRW to promote ‘Digital New Deal 2.0’ next year. The government has established a strategy to expand virtual convergence technology (XR) into six major industries with significant economic ripple effects (manufacturing, medical, construction, education, distribution, defense). Specifically, the Ministry of Education plans to pilot Wi-Fi 6E deployment in elementary, middle, and high schools to lay the foundation for immersive education expansion, while the Ministry of Science and ICT is promoting the expansion of Wi-Fi 6E AP installation inside Seoul subway cars in cooperation with the three telecom companies.
Researcher Heo analyzed, "With the acceleration of upstream industries and the expansion of government investment in communication infrastructure expected from next year, Dabowlink is likely to directly benefit."
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