Intel To Make High-Speed Modems
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SANTA CLARA, Calif. (AP) - Intel Corp. (Nasdaq:INTC - news), in another move to expand beyond the computer chip business, says it will begin making modems for digital subscriber lines, which allow high-speed Internet access.
The modems, available later this year, will allow Internet access that is about 25 times faster than traditional analog modems.
The modems will initially be sold to telephone companies and DSL service providers who will install them in consumer's homes, the Santa Clara, Calif.-based company said in a statement Thursday.
Intel, the world's largest chip maker, entered into an agreement with Cisco Systems Inc. (Nasdaq:CSCO - news) to make the modems compatible with Cisco's CentralOffice DSL equipment. Intel says the modem also will work with network equipment from other suppliers.
DSL is a technology that can send data in one direction over a telephone wire at about 7 million bits per second. Current standard modems can send data with a speed of about 56,000 bits per second. DLS lines cost about $100-$150 per month.
The push into DSL modems is one of several recent moves by Intel to diversify. On Wednesday, Intel announced that it will restructure several of its business groups to focus more on Internet opportunities.
In June, Intel announced that it will collaborate with the satellite and telecommunications company Hughes Electronics Corp. on a wide-range of set-top products that deliver Internet access to a television.
The company also recently invested in European Internet provider World Online International, which operates in 12 countries with about 800,000 individual subscribers and 15,000 business subscribers.
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