Intel Invests in Wi-Fi

Intel will invest $150 million in companies developing 802.11b and other wireless networking products, the chip maker has announced.

The money, coming from the $500 million Intel Communications Fund established three years ago, should help accelerate the deployment of wireless networks and proliferate the 802.11b standard worldwide, Intel said in a statement.

The fund will invest in companies developing hardware and software products and services that enable user friendly and secure wireless network connections, simpler billing procedures, a robust infrastructure, and new ways to connect while on the road, Intel said.

Adoption Accelerates

802.11b, or Wi-Fi, is a standard for wireless LANs operating in the 2.4 GHz spectrum offering transmission speeds up to 11 megabits per second. The technology is used for public hotspots at airports, hotels, and conference centers. The Starbucks chain has recently deployed wireless networks in many of its coffee shops around the country.

Wi-Fi is also increasingly becoming the choice of companies and consumers who use it to install wireless networks in the home or office.

Even longtime Intel partner Microsoft has jumped on the Wi-Fi wavelength. The software giant recently introduced a Broadband Networking Wireless Kit, a $220 package that supports up to four PCs via conventional Ethernet plus a single connection through a wireless adapter.

Wireless Goals

An increased uptake of wireless LAN will benefit Intel. The chip maker in the first half of next year will launch a chip, code-named Banias, that has built-in support for both the 802.11b and 802.11a wireless LAN technologies. 802.11a is a standard for wireless LANs operating in the 5-GHz frequency range with a maximum data rate of 54M bps.

Intel executives also have described their plans to support wireless communications in regard to multimedia file-sharing. At the Intel Developers Forum, the company showed technology that would let users move videos and digital images among handhelds, notebooks, and consumer electronics devices through 802.11b wireless technology and Ethernet connectivity.

The Intel Communications Fund has already invested about $25 million in more than ten companies pursuing development in the WLAN market, Intel said.