Intel's $600 Million WiMax Bet

Any doubts about Intel's commitment to its fledgling WiMax business were just dashed. Despite rumors the computer chipmaker has considered dumping the business as part of a broad reorganization now under way, Intel (INTC) on July 5 announced it would invest $600 million in Clearwire, the wireless broadband provider founded by cellular pioneer Craig McCaw. The goal: to help build a nationwide service that equips notebook PCs for fast Web access and Internet-based calling over vast swaths of the U.S.

The surprise announcement of Intel's second investment in Kirkland (Wash.)-based Clearwire in recent years is a big shot in the arm for WiMax, a technology that blankets large areas with wireless broadband. It's likely to accelerate efforts by big-name wireless carriers to offer competing technology. "The U.S. is now going to get a high-speed wireless broadband network sooner than it would have," says Intel Executive Vice-President Sean Maloney, who spoke to BusinessWeek in an interview.