UWB's strengths are its very-high throughput -- now typically in the 50M to 100Mbps range with first-generation chips or chipsets -- and very low power, about 1mW per Mbps compared to 15 to 20mW per Mbps for 802.11g and estimated 6 to 8mW per Mbps for 802.11n. Alereon has demonstrated throughput of 200Mbps, according to Broockman, and the next generation of UWB silicon will offer peak rates of 300M to 377Mbps and . But that's still well below the 450Mbps originally touted by UWB proponents.

The fundamentals of the technology remain solid, even if the U.S. and global economies make it tough for UWB start-ups to find new venture funding, Broockman says. The number of wireless USB products is growing because of the sheer convenience of using wireless connections and the ability to use today's USB-based software transparently.

One stubborn challenge, however, is lowering the cost of UWB chips from about US$10 today to the $2-to-$5 range, in order to trigger mass adoption in the wireless USB and mobile handset markets.

Broockman sees Bluetooth over UWB as a key development. That's because cellular handset makers have big investments in Bluetooth software designed for mobile phones and applications. Now that investment can be leveraged over a much faster UWB link, without the costs and complexities associated with Wi-Fi.

Stonestreet, for example, is continuing aggressively with its work in that and other areas of UWB, according to Broockman. Alereon's acquisition was based on Stonestreet's decision to divest itself its PC driver software, which Alereon was already licensing and wanted to secure, he says. Alereon earlier this year began product development for integrated laptop-based UWB.