Interview: Intel sees Asia leading wireless internet roll-out

PUSAN, South Korea (Reuters) - Intel Corp, the world's largest microchip maker which has been pushing for fast wireless internet access on PCs, says Asia is likely to lead the commercial roll-out of the technology, backed by government encouragement.

The technology, called WiMax, will provide a new growth avenue for the chip industry if successful, said Sean Maloney, executive vice president and general manager of Intel's mobility group, in an interview.

"I think Korea will be the first, and a lot of people are going to be trying the technology in the next 12 months," said Maloney, who is in Seoul to attend the demonstration of Wibro, the Korean version of the wireless broadband service based on WiMax technology.

The US company has been devoting heavy engineering resources to develop the WiMax technology in the aim of integrating it into notebook computers and communications equipment.

Intel has worked with KT Corp, South Korea's top fixed-line and broadband operator, to set up the service. KT is expected to launch commercial service in April next year.

"If you look at Korea, Japan and Taiwan, there is the government's belief that the country needs to be the first...there's a very strong government encouragement," he said.

WiMax technology covers entire cities with high-speed wireless internet links and is expected to be also popular in countries with large rural areas with no coverage from fixed-line networks.

Indonesia and Vietnam are among countries that are expected to try out the technology next year.

South Korea, a pioneer in broadband internet services, on Monday launched the trial service of Wibro in locations including buses, the first time worldwide the technology is being tried on a moving basis.

"I think it's a compelling experience," said Maloney, after he tried the Wibro service offered in part of the Pusan city, the venue for ongoing Asia-Pacific leaders' meetings.

Maloney, who served as a technical assistant to Intel's chief executive between 1992 and 1995, was cautious about the speed of the market's growth. He cited the time-consuming process of building the networks and providing new devices designed for WiMax.

"If it's successful, it's another global chip application," Maloney said. "It's still early days to talk about numbers."

Samsung Electronics Co Ltd, Intel's South Korean rival and also the world's third-largest mobile phone maker, has unveiled its new mobile phone and other portable devices designed for the Wibro service in the APEC IT exhibition.

The service is expected to provide telecoms companies in mature markets with new income sources while facilitating better education and healthcare services in rural areas.

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