LTE - Intel a strong backer of WiMAX is not supporting LTE in the longer term

[live mint] The world’s largest computer chip maker, Intel Corp., which promotes the so-called wireless inter-operability for microwave access, or Wimax, technology as the standard for wireless broadband Internet, now says it may support the rival Long Term Evolution (LTE) technology.

“Question is, (in the) long term is LTE much bigger? Possibly yes, quite possibly yes,” said Tom Kilroy, Intel’s global sales and marketing head. “Whenever LTE makes it to the market, Intel will support LTE.”

Wimax and LTE are similar but competing technology standards that telecom operators can choose between for offering wireless broadband services. Intel, which earned $35 billion (`1.41 trillion) of revenue in 2009, manufactures chips that make computing devices Wimax-enabled. LTE is backed by another chip-maker, Qualcomm Inc.

In June, India auctioned wireless broadband spectrum for `38,540 crore, with just one company—Infotel Broadband Services Pvt. Ltd, now owned by Reliance Industries Ltd (RIL)—emerging as a pan-India operator. Qualcomm participated in the auctions and won access to four regions, or circles.

Kilroy, who met local telecom operators during his trip to India last week, said Intel was not “religious” about Wimax and its research and development (R&D) plans are geared to support LTE if that technology becomes the industry standard.

But the chip-maker continues to bet on an interim Wimax phase as network equipment for LTE is evolving slowly.

For Intel, the uptake of Wimax by Indian operators translates into demand for Wimax-enabled devices. India, with low Internet and computer penetration levels, offers a huge opportunity for companies such as Intel.

“They (Indian telecom operators) have signed the big checks, they’ve got the spectrum,” said Intel’s managing director, sales and marketing, South Asia and India head Sivakumar Ramamurthy. “These are like tomatoes on the shelf; they tend to rot if you don’t make use of them. And you paid for that already.”

He added that the operators know if they want to deploy a technology today, they have only one choice—Wimax. “The question is: Do you jump in, go the whole hog and build that business out, and then figure out what your long-term strategy is?”

Staunch Wimax-backer Intel to support LTE