Intel and Alcatel get the WiMaximum from alliance

Intel and network gear maker Alcatel announced on Thursday an alliance to deliver WiMax equipment by the second half of 2005. WiMax, a wide-area wireless broadband technology, is viewed as a cheaper alternative to DSL and cable broadband access, because the installation costs of wireless infrastructure are minimal when compared with those of wired versions. Networks based on WiMax standards are expected to have a range of up to about 30 miles, with data transfer speeds of up to 70 megabits per second.

Intel is expected to begin shipping WiMax chips in the second half of this year. The company will manufacture chips based on the 802.16d standard, which is meant for wireless high-speed connections to antennas. Intel executives have said they view WiMax as a complement to Wi-Fi.

WiMax is already being tested as a method of closing Britain's broadband divide. BT is running trials of a high-speed wireless service based on WiMax at four rural locations. This could lead to full commercial deployment in the future.

"If the potential benefits of WiMax, such as voice services and portability, are realised, then there might be a case for rolling out a WiMax service more widely," said Ian Robinson, head of emerging products at BT Retail, recently.

Robinson added that government subsidies would be needed in remote areas where there isn't a business case for telcos to offer broadband at present.

ZDNet UK's Graeme Wearden contributed to this report.

Richard Shim writes for CNET News.com