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Impatient Intel will accelerate WiFi growth with cash to startups

"Wi-Fi use is experiencing explosive growth. Estimates show that it could grow to 30 million laptops equipped with Wi-Fi capability in three years," says Intel Capital President Les Vadasz. Intel is about to press the accelerator pedal - not just for itself, but for the whole industry.

Intel has announced plans to invest $150 million in companies developing WiFi technology. "The investment is another step in the company's efforts to accelerate wireless network deployment and proliferate the Wi-Fi standard worldwide," according to its official press release.

Intel Vice President Les Vadasz: "It will fundamentally change the way people use technology and enable high-speed Internet access anytime, anywhere for business and consumer use."

He was speaking to transportation industry officials at the Wireless Airport Association Conference and Exposition in Washington, and urging the acceleration of hot-spot deployment at airports nationwide.

The company's interest in getting WiFi proliferating is not purely altruistic. Much of its future depends on a successful launch for its forthcoming mobile chipset, codenamed Banias, designed not only to maximise battery life, but also including both WiFi and WiFi 5 (11b and 11a) wireless as part of the integrated chip set. And there is a big incentive to buy the wireless-enhanced (but premium priced) Banias system, if wireless is ubiquitous.

The first Banias-based portables were expected in January-February when announced earlier this year, but have slipped, with Intel now saying only that "Banias will be available in the first half of next year."

But although Intel is bullish about its investment plans, it hasn't indicated clearly where the money will go. "Wi-Fi is one of the ripest areas for innovation in the industry," said Pat Gelsinger, Intel Vice President and Chief Technology Officer. "Intel will continue to play a key role in its development through investments, research, industry programs and products." However, in detail, he simply indicated that the Intel Communications Fund "will invest in companies developing hardware and software products and services that enable easier-to-use and more secure wireless network connections, simpler billing procedures, a more robust network infrastructure, and new ways to connect to high-speed networks outdoors and to deliver services run over the network."

Intel Capital, Intel's strategic investment program, has already invested approximately $25 million in more than 10 companies in this space.

The Intel Communications Fund, managed by Intel Capital, was established in September 1999 and focuses on accelerating Intel voice and data communications initiatives. The $500 million fund will devote $150 million specifically for investment in Wi-Fi companies worldwide. The Intel Communications Fund has made more than 80 investments in 17 countries on five continents. For more information about the fund, visit the Intel Web site.