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Analyst: Intel unlikely to invest $2B in WiMAX
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Reports early last month claimed that Intel was interested in investing about $1 billion to $2 billion into a rumored Sprint-Clearwire WiMAX joint venture, but one analyst is throwing cold water on Intel's potential role in such a JV.
"There is very little precedent for Intel making a $1 billion to $2 billion investment in a non-core business," JP Morgan analyst Jonathan Chaplin said after attending an Intel analyst event last week.
Chaplin pointed out that Intel's entire R&D budget is in the $1 billion to $2 billion range, and WiMAX is but one of several initiatives. Chaplin said it was far more likely that Intel would join a consortium of investors, which could include Google, handset makers and wireline or cable operators, to fund a Sprint-Clearwire joint venture.
For more on the comments:
- read this report from Telecoms.com
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Comments
Posted by Anonymous | March 19, 2008 - 5:07pm
This analyst is an idiot. Intel has already dumped over $200 Million on Clearwire in 2006 to keep an exclusivity right to integrate Clearwire WiMax chips on their motherboards. Now that WiMax is ramping up $2 Billion is chump change when it keeps you in the game.
Posted by Anonymous | March 19, 2008 - 7:04pm
come on...$2B is never chump change...that's on top of another $2B already spent...they are going to slow things down with the U.S. in a recession.
Posted by Anonymous | March 19, 2008 - 11:17pm
They invested 900 million already - they're not going to walk away, or put in another 2 billion. Look for something in between (500m). A company with this much capital invest the most during weakening economics. It's all about cycles and having the technology available once things turn up. With rates as low as then are things should start to heat up towards the end of the year - the fed will make sure of it. It may not last long but as long as the technology gets a foot hold that's all it needs. Also remember then plan to embed WiMAx chips in laptops starting in 09 - they'll need something to connect to.
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