By Tom Foremski for Silicon Valley Watcher

Intel (an SVW sponsor) is a strong supporter of WiMAX, the wireless broadband technology that works over a distance of several miles compared with the hundred foot or so range of WiFi. WiMAX offers the possibility of bridging the digital divide by bringing down the cost of providing Internet access.

More importantly, WiMAX could be a way of opening up the "last mile" into consumers' homes, currently guarded by the cable and telco companies. These companies have been bundling Internet access with other services, which raises the costs for many customers interested in just Internet access.

The Intel WiMAX Connection 2300 chipset design was demonstrated during Executive Vice President and Chief Sales and Marketing Officer Sean Maloney's keynote at the 3G World Congress and Mobility Marketplace in Hong Kong.

Maloney showed an Intel® Centrino® Duo mobile technology-based laptop with mobile WiMAX (IEEE 802.16e-2005), Wi-Fi (IEEE 802.11n), and high-speed downlink packet access (HSDPA) 3G capabilities successfully accessing the Internet at broadband speeds over a mobile WiMAX network.

Link to Intel Demonstrates Its First Mobile WiMAX Baseband Chip

This WiMAX chipset could also help boost Intel's revenues. The company's Centrino WiFi chipset for notebook computers was hugely successful and helped support record profit margins for many quarters.

Integrating radio capabilities into chips is not an easy task because analog and digital circuits respond in different ways to the CMOS production process.

This is interesting:

For the first time, Intel incorporated multiple input/multiple output (MIMO) functionality into the baseband chip to enhance the signal quality and throughput of wireless bandwidth. The baseband chip also employs the same software for Intel's WiMAX and Wi-Fi solutions to help ensure unified management for connectivity. Over-the-air provisioning supports easy configuration and enables consumer activation of services, shifting the traditional hands on service provider business model to a direct activation one based purely on consumer purchases of mobile devices.

Making things easier for consumers is key, it appears that they will be able to choose services without needing to know how to configure their notebooks, or be tied to any one service provider. I wonder how the cable and telco companies will respond, especially since WiMAX would enable inexpensive cell phone capabilities.

WiMAX would offer far faster Internet connection speeds, which would encourage new types of applications and services, which would require more Intel based infrastructure equipment investments. WiMAX on consumer notebooks would pull through a potential revenue bonanza for Intel.

Opening up the "last mile" would also help to establish Internet neutrality--vital in creating a fair competitive arena for startups with innovative services and technologies. Clearly, there is quite a lot riding on this Intel product.

But, there is a wait:

Intel plans to focus on validating and testing the product, with plans to sample both card and module forms beginning in late 2007.