Note: This is the second part of a two series article (please follow this link to go to the first Technology Futurist IDF entry which discussed Intel's dual-core processing architecture plans).

WiMAX, the next frontier

During IDF, Intel put its weight behind WiMAX, the newest broadband wireless technology, via the official launch of its Rosedale chip.  Rosedale, the silver circle with a black square housing shown on the figure to the right, is an SOC (system-on-chip) geared towards networking equipment that will wirelessly connect end-users' homes or offices via a WiMAX-based broadband network.  Intel has already started sampling the Rosedale chip to customers (not incurring any revenues yet, given that field trials are only slated to begin next year).  While Intel is not the first vendor to introduce a WiMAX chip (other players such as Redline Communications already have WiMAX chips that are shipping), the company is certainly allocating a lot of resources to this project.  Intel believes that the wireless broadband market is poised for solid growth in the next three years, and believes that Rosedale can be a viable option to do last-mile fixed access to the home.

Despite that, the chip is not likely to contribute significantly to the company's revenues for quite some time, at least until Intel is able to drive the equipment down (from about $350 to below $200 for client equipment).  Ultimately, the goal is to reach the price point of Wi-Fi gear. 

WiMAX, also known as the IEEE 802.16 standard, is a wireless specification that can deliver two-way Internet access at throughputs of up to 75 megabits per second at long range.  WiMAX proponents claim that it can transmit data for distances up to 30 miles between broadcast towers, covering areas having more than a mile in radius, all of this at a speed exceeding current DSL and cable broadband capabilities.

Intel envisions three WiMAX models: fixed access (alternative to DSL or cable broadband), portable use (within metro zones) and a full mobile system that includes hand-offs as users move between cells (the IEEE 802.16 committee still has some work to do in delivering that mobility management).  The Rosedale design does not include the radio element (Intel plans on working with third-parties on that front) and enterprise functionality (i.e. routing or switching details that will be part of a yet to be finalized specification).

Sony (NYSE:SNE) announced earlier yesterday that it will buy Metro-Goldwyn-Mayer Inc. (NYSE:MGM), Hollywood's last major independent studio, for a price tag of 550 billion yen (or roughly US$ 5 billion).  The deal was struck on Monday, but the Japanese electronics giant's desire for MGM was well known before that, and it is not to understand why: access to an enviable library of 4,000 movies (including the famous James Bond series or Rocky movies), and a great branding recognition in North America and elsewhere in the world.  More importantly, this move also indicates Sony's continued wish to complement its audiovisual hardware portfolio with great video content (Sony had already bough Columbia Pictures in 1989).

Much has already been written about this, so I will mention a couple of great insights.  One is from Om Malik in his blog.  For a Japanese perspective, I enjoyed reading this article on The Asahi Shimbun (Japan's second largest newspaper).  Om and others believe that Time Warner (NYSE:TWX) will now spend its cash buying all or parts of Adelphia (Time Warner had over $6.2 billion in cash on its balance sheet at the end of the June quarter).  That process, however, is expected to be quite lengthy, given Adelphia's past and the fact that the latter's assets are not well known to the industry at large (Time Warner did reveal that it had not done its full due diligence as of yet).  One thing is for sure: despite the lengthy negotiations, MGM got quite an attractive price for its assets.  The $4.9 billion tag represents about a 7-8% premium over most Wall Street analyst valuations of MGM (Time Warner had bid between $4.5 and $4.6 billion for MGM).

As a side note, Malik also points out an interesting detail that was a part of the big merger: