Intel Invests in Formus Communications to Expand Broadband Services in Europe

Strategic Insights -

Intel Corporation has announced an investment in Formus Communications, a company that is currently deploying "last mile" broadband wireless access (BWA) networks in Poland and other European countries. The investment aims to help Formus build out its networks and provide improved broadband Internet access to small and medium-sized businesses. Intel will also work with Formus to market its BWA services through resellers of Intel products in certain Polish cities. This partnership is part of Intel's ongoing commitment to facilitate the deployment of broadband services that help fuel the growth of the Internet for e-Business.

Key Takeaways:

  • Intel has invested in Formus Communications to help the company build out its broadband wireless access (BWA) networks in Poland and other European countries.
  • The investment will provide improved broadband Internet access to small and medium-sized businesses in the region.
  • Intel will work with Formus to market its BWA services through resellers of Intel products in certain Polish cities.
  • Formus seeks to extend its services into geographic markets where expensive wireline alternatives may not be readily feasible or cost effective.
  • The company intends to integrate cost-effective, high-capacity BWA technology to provide its customers with reliable high-speed Internet service and data transmission.
  • Formus is focusing primarily on markets in Europe, with projects delivering BWA services in Poland, Germany, Finland, France, and Hungary.
  • The company has contributed its Latin American assets to VeloCom Inc. and holds a 20.5 percent share in the company, which holds broadband licenses in Colombia, Peru, Argentina, and Brazil.

Statistics:

  • Intel's investment in Formus will help the company build out its broadband wireless access (BWA) networks in Poland and other European countries.
  • Formus seeks to provide its customers with reliable high-speed Internet service and data transmission through cost-effective, high-capacity broadband wireless access technology.
  • The company has projects delivering BWA services in Poland, Germany, Finland, France, and Hungary, with a focus on expanding its services into new geographic markets.
  • Formus holds licenses in Finland and is operating under temporary test licenses for BWA projects in France and Hungary.
  • The company became a 20.5 percent shareholder in VeloCom Inc. in August 1999, which holds broadband licenses in Colombia, Peru, Argentina, and Brazil, covering 206 million population units in Latin America.

Sources:

  • Intel Corporation press release, no date listed.
  • Formus Communications, Inc. press release, no date listed.
  • VeloCom Inc. press release, no date listed.
  • Intel Corporation website: www.intel.com.