Intel enters telecom equipment market
SANTA CLARA, Calif. (CBS.MW) - Intel, the world's top microprocessor seller, announced Wednesday that it's selling equipment to help its chip customers challenge Sun Microsystems in the telecom equipment market.
marketwatch.com
In an effort to jump-start the use of its chips in telecom equipment, Intel plans to manufacture processors, motherboards and computer cases for servers used in telecom networks. Intel plans to announce customers in 2002 that will add their own memory chips and hard drives to complete and sell the telecom equipment.
The move is expected to come as a challenge to dominant Sun Micro, the server-computer company that's built a niche in telecom equipment. Sun is one of the few makers of server computers not to use Intel's chips.
Intel plans to help its customers produce two product lines aimed at telecom carriers, including one that measures about 1.75 inches deep, so many of the computers can be stacked in a rack. The machines will initially use Intel's Pentium III family of processors.
The Intel-based computers are expected to power both voice and data traffic network, as well as wireless network systems.
Santa Clara, Calif.-based Intel says the computers have met industry reliability requirements, so the servers can withstand extreme heat and cold, earthquakes and fires.
Shares of Intel (INTC: news, chart, profile) rose 19 cents to $33.38 in Nasdaq trading Wednesday. Sun Micro (SUNW: news, chart, profile) shares fell 15 cents to $13.24.
wbmw |
