Intending to play a key role in the broadband medium technology arena in India, Intel Corporation is showing keen interest in helping to build infrastructure that would facilitate the growth of the Internet in the country.

"We will play the role of a proactive technology provider in the broadband area, with our investments in Mumbai-based IN Cable Networks," said Jason Chen, vice president and general manager, Asia Pacific, Intel.

Intel recently picked up a 49 percent stake in IN Cable, and hopes to make a significant foray into the broadband market. "We are just the technology provider," explained Chen. "The content strategy for the network is being finalized by the Indian company."

Earlier, Craig Barrett, CEO and president of Intel, had observed, "We do not want to restrict ourselves to providing solution for just the e-commerce segment. We are looking at opportunities to participate in building infrastructure in the country."

Intel has participated in building infrastructure in other countries as well. For instance, it has a tie-up with Pacific Cyberworks of Hong Kong to build this kind of infrastructure for China.

In 1998, Intel and the Hong Kong-based Pacific Century Group (PCG) had floated a joint venture company called Pacific Convergence Corporation to enable broadband Internet deployment in Asia. Last year, Intel invested US$50 million in Pacific Cyberworks. The JV is to be merged back with Pacific Cyberworks later, as part of the deal.

Intel's investment in infrastructure will be business-related and not financial. Last week, Craig Barrett, Intel president and CEO, had announced that Intel would increase its venture capital investments in India tenfold to US$100 million in 2000.

Intel has already announced plans to set up a server farm in India, which is expected to come up near Mumbai. However, Intel officials did not disclose the proposed investment in this area.

In another business venture, Intel will supply servers to broker plazas being put up by DotEx International, a joint venture company between NSE.IT and i-flex Solutions (formerly known as CITIL). A US$5.8 million project, Brokers Plaza will enable brokers and retail investors to e-trade securities listed on India's stock exchanges.

The National Stock Exchange (NSE) would be the seventh institution in the world to use Intel technology for trading on the Net.

May 31, 2000