Intel Stresses Broadband Demand, Eyes WiMAX
The NTIA and the RUS should balance the needs to stimulate broadband supply and demand in giving out grants and loans, Intel Executive Vice President Sean Maloney said in an interview. Calling WiMAX a broadband technology that makes efficient use of spectrum and uses an all-IP network, he said he hopes the technology will help the U.S., which lags in GSM and 3G, take the lead in 4G.
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A balanced program combing broadband connectivity and computer education and ownership is critical in distributing the stimulus funds, Maloney said, supporting tax incentives. He said countries like China, India, Portugal and Australia are trying to spur broadband demand by providing subsidies, rebates, and tax refunds for computer purchases by consumers and small- and mid-sized businesses. In a recent filing with the NTIA and the RUS, Intel asked the agencies to base the choice among applicants on tests aimed at the mix of capabilities, cost and price that will best meet the broadband needs of the area to be served. All applications should be required to specify “what their projected cost per subscriber will be for their scheduled deployment at one, two and three years assuming a 25, 50 and 100 percent penetration,” Peter Pitsch, Intel executive director of communications, wrote on the company’s policy blog.
It’s natural that some WiMAX manufacturers plan to apply for stimulus money for rural areas, Maloney said. WiMAX, cost-effective and compatible with 2G and 3G networks, is the right technology to reach unserved and underserved places in the countryside, he said.
There’s no reason for the U.S. to lag behind the rest of the world in 4G adoption, Maloney said, noting rapid WiMAX deployment in countries like Japan and South Korea. He touted the 2.5 GHz spectrum, used by WiMAX operator Clearwire, as the right band for a nationwide 4G network. But some analysts said the U.S. WiMAX adoption may be handicapped by its limited number of operators and the lack of access to the 3.5 GHz band, used by some Asian and European operators.
Netbooks and notebooks with embedded WiMAX chips will be the target of Intel’s WiMAX offerings for now, Maloney said. But WiMAX will be integrated into a wide range of devices, including smartphones, PDAs and cameras, he said. Intel isn’t scaling back its investments this year, Maloney said. “If you back off investment in recession, you are threatening your economic future,” he said.