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Intel Enters Broadband Market with DSL Technology Agreement

Strategic Insights

— 1 min read

As part of its strategy to make high-speed internet access more affordable and widely available, Intel Corporation has announced plans to deliver broadband connectivity devices aimed at providing residential and small business users with faster access to the internet. This move marks Intel's entrance into the emerging broadband marketplace and its intent to make high-speed access more accessible to end-users. Intel's Broadband Access Operation (BAO) has entered into a technology agreement with Cisco Systems, Inc. to develop, manufacture, and market a line of PC-based ADSL modems compatible with Cisco's Central Office DSL equipment. This collaboration is expected to bring innovative broadband products to the market and further Intel's vision of a billion connected people in the next decade.

Key Takeaways:

  • Intel's broadband strategy aims to provide residential and small business users with faster access to the internet, typically 25 times faster than the fastest analog modems.
  • The technology agreement between Intel's BAO and Cisco Systems, Inc. will develop, manufacture, and market a line of PC-based ADSL modems compatible with Cisco's Central Office DSL equipment.
  • The first Intel ADSL broadband products are expected to begin shipping later this year and will be available through local telecommunications providers.
  • Worldwide DSL subscribers are expected to increase 150 percent in 1999 and reach two million new subscribers in 2000, according to Cahners In-Stat Group.
  • Intel helped develop the G.lite standard, which will help reduce the cost and complexity for consumers of installing DSL modems and will help PC manufacturers to make broadband connectivity a standard feature.

Statistics:

  • Worldwide DSL subscribers are expected to increase 150 percent in 1999.
  • The first Intel ADSL broadband products are expected to begin shipping later this year.
  • Two million new DSL subscribers are expected to reach in 2000, according to Cahners In-Stat Group.
  • The International Telecommunications Union (ITU) approved G.lite and G.DMT as worldwide DSL standards on June 22, 1999.
  • Intel's ADSL products will be available through local telecommunications providers.

Sources:

  • Business Wire: "Intel Enters Broadband Market with DSL Technology Agreement" dated July 15, 1999
  • Cahners In-Stat Group: "DSL Market Analysis" dated 1999
  • Intel Corporation: Additional information available at www.intel.com/pressroom
  • Cisco Systems, Inc: Contact Sharon Powers at 512/378-1093 for more information regarding Cisco.

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