Intel Pushes Wireless Networking
5 minutes ago
Jay Wrolstad , Wireless.NewsFactor.com
Having established a dominant position in the PC market, chipmaker Intel (Nasdaq: INTC - news) is now going after the wireless networking market, announcing plans to invest US$150 million in companies developing Wi-Fi technology.
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Wi-Fi, or IEEE 802.11, has become a widely popular method of offering high-speed wireless Internet access through local area networks established in corporate offices, universities and homes, as well as in a proliferation of "hot spots" in airports, hotels and cafes.
Connectivity Is Key
Intel, the world's leading chip provider, also will devote increased research and development efforts to Banias, a chipset designed for mobile PC users that will include dual-band 802.11a and 802.11b wireless capability. Banias will be rolled out in the first half of next year, the company said.
While 802.11b offers a broader range of wireless connectivity and is already widely available, 802.11a is an emerging technology that offers greater bandwidth.
According to IDC analyst Keith Waryas, Intel has recognized that connectivity is a key factor for next-generation computing systems. "Wi-Fi will be a major part of the device space in the near term, with the technology featured in business PCs, handheld devices and home networking," he told NewsFactor. "Intel wants to integrate connectivity in all of these devices."
A $2B Market
Other analysts agree with Gartner projections that the global wireless local area network (WLAN) market will approach $2.8 billion in 2003, up from $2.1 billion in 2002. Its worth is expected to continue climbing through 2007, driven by the demand for mobile access to data among business professionals.
While the market currently is dominated by add-on WLAN adapters, Gartner said that 10 percent of all mobile PCs sold this year will include WLAN technology, rising to 31 percent in 2004. By 2007, Gartner forecasts, 68 percent of mobile PCs shipped will feature such technology.
Wi-Fi will fuel this growth, said Waryas, pointing out that the technology makes it a lot easier to set up short-range systems in homes and offices. He cited software giant Microsoft's (Nasdaq: MSFT - news) new Wi-Fi-based product line, designed to connect home computing systems, as evidence of growing interest in the standard.
Deep Pockets
"In the next five or six years, we will see the home networking concept become a lot more compelling, with the introduction of tablet PCs, security systems and appliances that are connected wirelessly," said Waryas.
With its deep pockets, Intel can help push innovation in the nascent Wi-Fi market by investing in startup companies working on new 802.11 applications. "They have the clout to direct the way standards develop," Aberdeen Group analyst Isaac Ro told NewsFactor.
The company's $500 million Intel Communications Fund, which is earmarked for voice and data communications initiatives, will devote $150 million specifically to investment in Wi-Fi companies worldwide, Intel said. Much of that most likely will be spent on companies developing access point equipment for wireless networks.
