Testing the system on Wi-Fi networks at MIT, where 2 percent of packets are typically lost, Medard’s group found that a normal bandwidth of one megabit per second was boosted to 16 megabits per second. In a circumstance where losses were 5 percent—common on a fast-moving train—the method boosted bandwidth from 0.5 megabits per second to 13.5 megabits per second. In a situation with zero losses, there was little if any benefit, but loss-free wireless scenarios are rare.

via A Bandwidth Breakthrough – Technology Review.

The technology transforms the way packets of data are sent. Instead of sending packets, it sends algebraic equations that describe series of packets. So if a packet goes missing, instead of asking the network to resend it, the receiving device can solve for the missing one itself. Since the equations involved are simple and linear, the processing load on a phone, router, or base station is negligible, Medard says.