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9/19/96 Intel CEO: PC, Telecom Indus At Odds Over Bandwidth Issues
WASHINGTON D.C. (Dow Jones)--The issue of higher bandwidth might cause two industries, telecommunications and personal computers, to collide, said Andrew Grove, chief executive of Intel Corp. (INTC). The bandwidth restriction is limiting applications that the PC can do, said Grove, who spoke at the Business and Technology in the Next Millennium Conference, sponsored by The Wall Street Journal. Grove spoke in a video presentation via computer. He said the PC industry has three rules that have helped it grow: using standard building blocks, using technology breakthroughs to build market share, and price-to-market, or cost follows price. The telecommunications industry does not seem to follow the price-to-market rule and does not seem motivated to increase to higher levels of bandwidth, he said. But Grove said he has an ''irrational faith'' that the telecommunications industry and PC industry will resolve their differences over bandwidth. Some of the megatrends in personal computers include communication applications such as voice and video, and Internet and intranet, but bandwidth limitations may slow these developments, he said. For software designers, the issue of bandwidth will affect design paradigms since software at present is distributed mostly through hard disks and CD-ROMS instead of through networks. Consumers are willing to pay for higher quality, Grove said. He sees the future of PCs based on network computing. (END) DOW JONES NEWS 09-19-96 11:57 AM
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