Intel, Craig McCaw Team Up to Develop Wireless Technology"

SAN FRANCISCO -- Intel Corp. (INTC) is teaming up with telecommunications pioneer Craig McCaw to develop and deploy a technology for portable wireless Internet access, a partnership that includes an investment by Intel in Clearwire Corp., Mr. McCaw's closely held company.

Financial terms aren't being disclosed. But Sean Maloney, an Intel executive vice president, characterized its investment in Clearwire as "significant." He said the money will be drawn from a $150 million fund set up by Intel's venture-capital arm to promote wireless technology.

Mr. McCaw has ambitious plans to set up a nationwide network offering broadband Internet access, focusing both on metropolitan markets as well as areas that aren't now served by services based on cable or digital subscriber-line technology. Its first service recently opened for business in Jacksonville, Fla.

Clearwire has acquired a large number of wireless spectrum licenses. Mr. McCaw also bought NextNet Wireless Inc., a maker of communications hardware that has sold equipment in Canada, Mexico, Africa and Asia.

The deal with Intel is based on WiMax, a wireless technology Intel has been heavily promoting as a longer-range adjunct to WiFi, which only has range to cover homes and offices. WiMax products now appearing on the market support fixed wireless communications, but industry engineers are hammering out final specifications for a version of the technology -- known by the designation 802.16e -- that will allow users to stay connected as they move laptop computers around the home or take them to other locations in a service provider's coverage area.

Up to now, Clearwire has used NextNet's proprietary data-transmission technology. Under the deal with Intel, however, Clearwire has agreed to deploy future networks based on equipment from NextNet that use Intel chips supporting the 802.16e technology.

Mr. Maloney, in an interview, said Intel has been working with Mr. McCaw's venture on the technology for about nine months. But he doesn't expect services based on the 802.16e products to hit the market until 2006.

-By Don Clark, The Wall Street Journal; 415-765-6115

(END) Dow Jones Newswires "

Posted to the site on 25th October 2004