In October 2002, Intel announced that its Communications Fund would invest $150 million in companies developing Wireless-Fidelity (Wi-Fi) technology. This is part of its effort to accelerate wireless network deployment and proliferation of the Wi-Fi standard worldwide. Wi-Fi technology, also known as 802.11, is an emerging technology for high-speed wireless Internet access in airports or corporates, campuses, or even at homes. In the first half of December, Intel organized Intel Capital WiFi day, which was attended by technology providers, venture capitalists, enterprises, and service providers. Sriram Viswanathan, managing director (broadband and wireless networking), Intel Capital Communication Sectors on Intel’s Wi-Fi vision and plans:

What is Intel’s Wi-Fi vision and what are the strategic interests?
Our vision stems from our belief that all communications devices will communicate and compute. Our goal is in enabling easy access and ubiquity. The overall strategic interest is in focussing on gap-filling, build an ecosystem, and market development. As part of the communications strategy, its our endeavor to invest in technology companies—both on the demand and supply side. The eyes and ears strategy is to be more opportunistic and look at innovative technologies. As part of these activities, we have set aside a sum of $150 million to invest in companies developing Wi-Fi technology and for proliferation of the same.

What areas will the fund cater to?
We have already invested close to $25 million in about a dozen companies. The fund will be invested in companies developing hardware and software products and services that enable easier-to-use and secure wireless network connections, simpler billing procedures, robust network infrastructure and new ways to connect to high-speed networks outdoors and to deliver services run on the network. The fund will look at companies in four main areas—services or channels like STSN, iPass, or Cometa; at systems level either in hardware or software like Nomadix, Blue Socket, or Red-M; software tools, utilities, and management like Interlink Networks, Transat, or Telesym, and component technology like SyChip.

What is Intel’s approach in the Wi-Fi arena?
Intel’s 802.11 strategy encompasses silicon technology and manufacturing, R&D, investments and donations, and enabling.

The company is devoting significant resources and attention to Banias, a next-generation mobile processor architecture, and Odem, the chipset for the access point. Banias will be available in the first half of 2003 and will be based on a new core chip design. Odem will be introduced along with Banias.

Intel has a 3G communications processor test chip in its labs and will be introducing a 2.5G version based on the wireless Internet on a chip technology later this year. Our next-generation technology will provide new levels of performance at low levels of power to enable a class of wireless Internet applications.

How is Intel proceeding?
We are expecting to launch 20–25 million units of Banias-based products. So it is in our interest to have a ubiquitous 802.11 network worldwide. This is needed to pass the red-face test for the Banias launch and then scale the deployment momentum post launch. We are spurring innovation and being an agent to change by removing technology barriers. We are also helping vendors and service providers to differentiate through Intel client and application-based silicon. As a step in that direction, we have formed Cometa Networks. This company will provide wholesale broadband wireless Internet access to telcos, ISPs, cable operators, and wireless carriers.

We have about 100 deals on the pipeline and are working closely to do all the needful. We are collaborating to influence the regulatory framework to harmonize spectrum, solve fundamental technical barriers like security, roaming, billing, and settlements, and enable rapid deployment of 802.11 for the last mile and hot spots.

Ch. Srinivas Rao