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Intel Sends PCs Home

Seventy thousand employees worldwide will get free Pentium III systems plus Net access.

By James Niccolai, PCWorld   

Intel on Tuesday announced it will issue a free Pentium III PC, unlimited free Internet access, and a printer to each of its 70,000 workers worldwide. While the move is intended to keep the company at the top of its industry, it will also help Intel employees and their families participate more in the Internet economy, says Seth Walker, an Intel spokesperson.

Ford Motor and Delta Airlines recently announced similar benefits, saying they will provide PCs and Internet access to all employees.

Intel expects to have equipped all of its workers with PCs by the end of the year through its Intel Home PC Program, and will extend the benefit to retired employees. The company hasn't offered an estimate of the cost of that benefit, but with high-end Pentium III systems selling for $1500 to $2000, observers say the bill should easily surpass $100 million.

Intel also won't say which companies will supply the PCs and the Internet access, although the chip maker is likely to "share the wealth among the big players," a source familiar with the matter says.

Automaker Ford is providing all 370,000 of its hourly and salaried workers with a computer, printer, and Internet access for $5 per month. Delta Airlines offers 72,000 employees a similar deal for $12 per month.

Intel claims it's the first high-tech company to offer such a deal, and it goes one better: The deal is free (apart from taxes), and Intel will refresh the PCs and software occasionally, Walker says.

"We give a lot of credit to Ford; they showed a lot of foresight. We think this is something a lot of other companies are going to start doing," Walker says.