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Intel Rival to Take on Chipmaker in Wireless Internet Market

Posted on: Thursday, 18 March 2004, 06:00 CST

Mar. 18--Computer chip giant Intel Corp. has spent millions to promote WiFi wireless Internet access, and boost sales of its Centrino wireless chips. Now archrival Advanced Micro Devices Inc. joining the fray. AMD has quietly begun subsidizing companies that offer free wireless Internet "hotspots" to their customers.

The move could help AMD raise its profile in the WiFi market, where the company has been virtually invisible up to now. It could also speed up a trend among hotels, cafes, and other businesses to offer WiFi service for free, to attract new customers.

"We are supporting businesses that offer free WiFi access to their customers," said AMD spokeswoman Jo Albers. "We're just providing advertising and promotional support."

Albers didn't provide details of how the support program works. But AMD and rival Intel routinely help computer makers pay for their advertising, if the AMD or Intel logo is prominently displayed in the ad. Intel also runs a certification program for companies offering wireless hotspots. Companies that meet Intel's standards are listed in an Intel directory of WiFi hotspots, making it easier for customers to find them.

But Intel's promotional program is focused on WiFi services that require customers to pay a fee. AMD wants to encourage businesses to provide free wireless Net access. Already, a growing number of businesses are moving in that direction.

For example, the Marriott hotel chain is offering free wireless Internet in many of its hotels. Government agencies are also promoting free WiFi as a boon to tourism and commerce. San Jose and Long Beach, Calif., and Milwaukee have begun offering free WiFi access in some parts of town.

This surge in free WiFi service might seem to pose a threat to companies like Wayport Inc. and cellular carrier T-Mobile, which charge their users for wireless access. But Dan Lowden, Wayport's vice president of marketing, said businesses that supply Wayport services to their customers are free to give it away, as long as they pay Wayport's fees. Lowden said some do exactly that.

"We would still get paid for providing that service at the venue," he said. "So for us it can go either way, and we're OK with that."

Lowden said customers are still better off using a commercial WiFi service instead of offering their own free Net access. For one thing, business travelers know the Wayport brand and look for it, which means more paying customers for the hotel. For another,

Wayport has 24-hour customer support and top-quality equipment, advantages a free service probably can't match, he said.

Shiv Bakhshi, a research manager at International Data Corp., agreed, saying most WiFi users will happily pay for security and reliability.

"What you're really buying quality of service," Bakhshi said.

Besides, he predicted that free Wi-Fi would be deployed mostly in cafes, public parks, and other locations that aren't especially attractive to serious business computer users -- the most attractive WiFi market.

"A whole bunch of desirable venues where you' want to sit down and work are not going to offer it for free," he said.

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