The world’s largest chipmaker, Intel, has signed a memorandum of understanding with Africa’s largest mobile operator, MTN, to extend its African reach.

Intel GM for sub-Saharan Africa Jacques van Schalkwyk says the agreement will result in Intel working with MTN to bring low-cost WiMax modems and computer equipment in markets where MTN has deployed WiMax networks. MTN operates WiMax networks in seven countries, including Uganda, Nigeria and Cameroon.

“It gives us an opportunity to scale faster than we are at the moment,” he says.

The agreement will also deal with other connectivity technologies, including 3G and other mobile broadband systems.

“It’s all about working strategically with MTN and formulating a programme that we can work on jointly in accelerating broadband adoption,” says van Schalkwyk.

Intel has spent millions of dollars developing WiMax, most notably its investment in Clearwire, which is building a WiMax network across the US.

The company has also developed integrated chipsets with WiMax technology.

However, according to Intel’s WiMax market development manager for the region, Gavin Coetzer, for now Intel will not bring Wi-Max ready chips or computers into Africa.

“Under the agreement with MTN we will be providing affordable modems that will allow it to target the consumer market with broadband technologies in Africa,” he says.

He says the cost of the modems will range from US$40 (about R292) for a consumer WiMax modem and $90 (R657) for the small-business WiMax access technology.

The agreement between the two companies will last for two years, after which it will be reviewed. — Candice Jones, TechCentral