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Intel (Nasdaq: INTC) may be abandoning some failed efforts at developing technology 
-- including a 4 GHz Pentium 4 and silicon for large-screen, liquid crystal televisions -- but the Santa Clara, California-based chip giant is going in the opposite direction on wireless. Today it announced it would throw its weight behind WiMax provider Clearwire.
Intel said it will complement cooperation on the 802.16e WiMax effort, which relies on Clearwire's NextNet broadband wireless technology, with US$150 million from Intel Capital. The companies are betting on WiMax, which can deliver fixed-location, high-speed wireless connectivity and -- it is hoped -- wireless broadband with mobile phone-type coverage.
Wireless analysts, however, indicate that the hype around WiMax, which is not yet being deployed by the industry, may be overblown.
"Right now, we don't have many details, so it's difficult to tell" Gartner (NYSE: IT) research vice president Phil Redman told TechNewsWorld. "It's built on the extensive amount of hype in the WiMax area."
New Global Network
Clearwire holds significant market share in the Americas outside the U.S.
Carriers, equipment makers and solution providers are all moving to lay the foundation for a next-generation, high-bandwidth network, according to Intel Executive Vice President Sean Maloney, who praised the Clearwire team in a statement.
"Their vision, energy and leadership will help us achieve the promise that WiMax technology offers -- widely available, high-speed wireless connectivity using extremely high-volume, low-cost technology based on open standards," Maloney said.
Intel said the Clearwire deal was the next step in its development of its WiMax technology, which is based on the upcoming "Rosedale" wireless broadband chip, a date for which has yet to be announced.
Hype Trumps All
Gartner's Redman, however, said that WiMax is little more than talk and "vaporware" at this point.
"I can't see what this will mean," he said. "Right now, the hype is superceding anything else."
Redman said that after having largely missed out on previous wireless technologies -- such as cell phones and Bluetooth -- Intel is looking to WiMax to correct its past wireless wrongs.
"This is Intel's other play trying to be bigger on the wireless radio side," Redman said.
Silicon Spreading Out
Intel has had to make a couple of embarrassing announcements around failed technology leading up to its WiMax announcement, and the company and its new partner acknowledged there is a long road ahead for the wireless technology to meet its potential.
"Intel is a leader in the development of WiMax technologies," said Clearwire Chairman and CEO Craig McCaw in a statement. "And while we have a tremendous amount of work ahead of us, we are encouraged by our early market deployments -- both at Clearwire and with our friends at NextNet."
Redman said with much of the broadband market in the U.S. already staked out by cable and DSL providers, it makes sense for Intel to work with Clearwire, which brings markets in Canada and Mexico within reach.
"I think the market is more outside of the U.S., but it may take longer than expected," Redman said.
The analyst also said there is uncertainty about the towers, frequencies,
and available bandwidth of WiMax. In addition, Redman said WiMax would have
to start out as a fixed wireless solution, leaving the more mobile market
and true benefits "a couple of years out in the future."
