Intel Chip Set to Power Wireless Internet to Extra Mile

April 18, 2005
(CoolAvenues News Wire)

Intel Corporation, the largest chipmaker in the world, is expected to announce the launch of its wireless chip known as WiMax. WiMax chip will enable computers to catch long-range high-speed Internet signals on a wireless network enabling a much higher reach than available today. As per Intel, Internet access speed on WiMAx will be six times faster than existing broadband in USA.

Introduction of WiMax chip is expected to give a significant boost to already expanding wireless market as it is going to be the first commercial chip targeted at wider wireless Internet access. At present, limited wireless Internet is available at various commercial places, like Coffee Shops, Airports, etc., (also known as hotspots) through a technology known as Wi-Fi or Wireless Fidelity. However, range of Wi-Fi is much shorter compared to WiMax.

WiMax is expected to be a good alternative in developing world where laying optical fiber or DSL network might be more costly and less practical. Given the lack of economies of scale in WiMax chips, the cost of adoption is going to be higher in the initial year, but is going to see increased adoption by the end of year 2007.

However, at present Intel is not looking forward to any significant profitability from WiMax and is looking it rather as a tool to increase penetration of Internet in areas where existing broadband services are not available. Further, WiMax is going to get around the problem of last mile connectivity that results in significant reduction in overall Internet access speed.

On a long term, Intel is reported to be working on a chip where a WiMax network can be established which would allow roaming of a user from one network to another network in a fashion similar to cellular networks in telecom sector. Once this aim is achieved, this will set a new level of competition among various players, i.e., broadband service providers, telecom companies, cable operators, DSL service providers, etc., which means a user hopping on a WiMax network might be able to use her palmtop as a mobile phone by accessing Internet telephony services offered by Skype and will bypass the conventional telecom network altogether.

Till that happens, it will be interesting to watch the development of WiMax.

Concluded.

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