Intellon was a pioneer in technology that lets consumers use the electrical sockets and wiring in their homes to link computers and consumer electronics devices in fast local networks. The company says its patented technology, first shipped in products in 2001, is at the heart of the HomePlug standard.

Atheros said in a press release that it intends to combine its Wi-Fi products with Intellon's powerline gear, providing dynamic meshing of wired and wireless networks for multimedia, data and voice applications. It expects the deal to close in the fourth quarter.

Most consumers with home LANs use Wi-Fi, but a number of vendors and industry groups, including HomePlug, offer other systems that claim to provide more speed and reliability than wireless. The HomePlug Alliance says its HomePlug AV can provide speeds as fast as 200Mb per second. As telecommunications carriers and cable operators deliver multiple HDTV streams and consumer electronics vendors introduce ways for various devices to interact, the need for fast home networks may grow.

Intellon said it has shipped more than 40 million chipsets and counts 50 service providers as customers. The HomePlug Alliance counts such heavyweights as Intel, Comcast, Motorola and Cisco's Linksys division among its members.