Intel readies for WiMax boom in 2010

Lighter and more efficient netbooks, cheap handheld internet devices, smart phones running computer chips — Intel’s plans for India in the New Year are as challenging as they are exciting.

The company said its target of connecting nearly half of India’s total population online by 2012 is well within reach, thanks to the upcoming WiMax auction.

Intel is betting big on wireless broadband technologies such as WiMax to push PC penetration in infrastructure-challenged countries like India. It has worked extensively behind the scenes to set up a policy framework to herald wireless broadband service in India — the fastest growing wireless market in the world.

In the absence of such regulation, Intel has had to stand by and watch as mobile phone manufacturers and service providers reaped the wireless boom. Intel is yet to establish its presence in handheld devices.

It, however, expects 2010 to change all that. The WiMax launch is expected to give a much-needed boost to the PC sales by making broadband connections ubiquitous. As for addressing the mobile market, the company will also launch more efficient versions of its Atom processor, including one targeted at smart phones. The launch of the new variant — based on the more efficient 32 nanometer technology instead of the current 45 nanometer one — is expected to happen in the first half of the year.

“If we can launch WiMax auctions as planned in the next two months, we can achieve the 5-1-1 target,” said Sandeep Aurora, sales and marketing director for Intel South Asia, referring to the target of having 500 million connected customers and 100 million broadband connections by 2012.

India currently has around 50-60 million internet users and 7.4 million broadband connections.

Aurora said India has the highest adoption rate for its low-priced Atom processor on desktops. The processors, which cost around a fourth of normal ones, were initially designed for netbooks, but have been adapted by Indian vendors for building low-cost desktop PCs costing Rs10,000.

“Development of the new Atom is happening in two separate tracks — one for the PCs and one for mobiles,” Aurora said.

He said India is likely to see a proliferation of WiMax-based handheld devices with the launch of such services, expected in the second quarter next year. WiMax handheld devices are expected to deliver the functionality of smart phones at a fraction of the price. “As soon as the auctions happen, we should be able to ramp up our hardware and channel partners. If you go to China and Taiwan, the technology [for WiMax handheld devices] is already there. The device ecosystem will come up in just a few days,” he said.