JOE NARDONE. General Manager, WiMAX Solutions Division Service Provider Business Group October 23, 2006

Transcription

1 JOE NARDONE General Manager, WiMAX Solutions Division Service Provider Business Group October 23, 2006

2 Intel s s Broadband Wireless Vision Intel is driving >200 million new screens each year We re focused directly on enabling broadband wireless to the home and your pocket WiMAX is the best broadband wireless technology choice and is ramping fast

3 The Internet Is The Great Growth Engine Internet and Cellular Phone Users, Indexed Over the Last 10 Years 16.0x Internet Users 14.0x 12.0x 10.0x 8.0x Cellular Subscribers 6.0x 4.0x 2.0x 0.0x Source: Internet World Stats, RHK, Gartner

4 Broadband Penetration But The Digital Divide Is Real Broadband Subs per 100 Inhabitants And Only Wireless Can Close the Digital Divide KOR US GER PRC IND Source: OECD, June 2005

5 Attributes of Broadband Wireless Open Standard with 100 s s of Vendors New Spectrum Multi-megabit Data Rates Technology that Builds Towards 4G WiFi-like Distribution and Economics WiMAX is the Best Choice for Broadband Wireless

6 WiMAX: Progress report Phase 1: Fixed WiMAX to Start We are here Phase 2: Mobile WiMAX to Follow Phase 3: Mobile Internet Usage Model

7 WiMAX Gaining Momentum Across The Globe Total +250 Trials, +40 Commercial Deployments * Other names and brands may be claimed as the property of others Source: Intel, the WiMAX Forum

8 Fixed WiMAX 1 st Year Ramp Matching DSL CPE Shipments & Forecasts Proxim Siemens Aperto DSL Airspan WiMAX Redline Year 1 Alvarion Source: Intel, Dell O ro,, Q3 06

9 Cost Innovation Will Drive Lift-Off The Impact of CPE Costs on Uptake Million Subs 100 CPE Cost $1, ADSL CPE Price WiMAX Imperative $800 $ $ DSL Subs $200 $0 Source: Intel, Point-Topic, IDC

10 Mobile WiMAX delivers four times the throughput of other wireless technologies at up to one-tenth the cost. Sprint 8/06 Names and Trademarks Are The Property of Others

11 Launched October 2006: Intel WiMAX Connection 2250 Integrated System-On On-Chip For Fixed and Mobile WiMAX Upgradeable Over The Wire from to Pin compatible with Intel PRO/Wireless 5116 broadband interface

12 Launched October 2006: Intel WiMAX Connection 2250 Leading TEM and Carrier Support Names and Trademarks Are The Property of Others

13 Mobile WiMAX Ready to Deliver KT of Korea launched mobile WiMAX Service KDDI of Japan Successfully Demonstrates Mobile WiMAX Mobile WiMAX Certification on Track for Late 06 Sprint in US committed to 100M covered POPs in 08 Intel on track to deliver Si for embedded WiMAX NB in 08

14 The Next Phase

15 The Next Phase 4 major computing cycles over past 50 years Mainframe Minicomputer PC PC Internet (Narrowband) Entering 2 most profound cycles ever PC Internet (Broadband) Mobile Internet Why now? Broadband becoming pervasive Internet-enabled mobile devices becoming pervasive Global technology innovation may be at all time high

16 The Internet Continues to Explode 200M Web searches a day BitTorrent accounts for 30% of traffic Video is 60% of all P2P traffic YouTube Page Views Millions 1,500 1,000 90M Paypal accounts Larger than AMEX M Skype downloads OCT NOV DEC JAN FEB MAR Source: Third party Market Research, Q3 06 * Other names and brands may be claimed as the property of others

17 WiMAX Will Drive A New Embedded Mobile Internet Business Model 100 Million Plus 100 Million Plus 100 Million Plus WiMAX Integration Across Multiple Segments

18 Device Innovation Will Drive Big Screen, Embedded Mobile Internet The Mobile Internet Today MySpace You Tube Second Life

19 Moore s s Law for Mobile Internet in Your Pocket Ultra Mobile PC 3 Screen Sub-Notebook 17 Screen Entertainment & Productivity Notebook Thin and Light Notebook NEAR FUTURE ~10X LOWER POWER ~10X MORE MOBILE Statements are vs. current devices Product descriptions, plans and comparisons provided are estimates only and subject to change without notice

20 Monthly ARPU Est. $100 $30 / $30 Goal for Mobile Internet $80 $60 3G Today <10% Attach Rate $40 $20 $0 WiFi Today + WiMAX Tomorrow 90% Attach Rate Goal $20 $40 $60 $80 $100 $120 PC Card Cost Est. Source: Intel, Instat,, Q3 06

21 3 Imperatives For The Mobile Internet Innovation in Distribution: Single Chip WiFi + WiMAX for Mass Market Segment Innovation in Services: Web 2.0, AJAX, Mashups, Personal Internet Innovation in Billing: Pay as You Go, Pre-paid, or Monthly Subscription * Other names and brands may be claimed as the property of others

22 WiMAX = Mobile Internet

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24 Risk Factors This presentation contains forward-looking statements that involve a number of risks and uncertainties. ies. These statements do not reflect the potential impact of any mergers, acquisitions, a divestitures, investments or other similar transactions that may be completed in the future. The information presented is accurate only as of today s s date and will not be updated. In addition to any factors discussed ssed in the presentation, the important factors that could cause actual results to differ materially include the following: Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term, significant pricing pressures, and product demand d that is highly variable and difficult to forecast. Additionally, Intel is in the midst of a crossover to a new microarchitecture on 65nm process technology in all major product segments, and there could be execution issues associated with these changes, including product defects and errata along with lower than anticipated manufacturing ng yields. Revenue and the gross margin percentage are affected by the timing of new Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, tors, including product offerings, marketing programs and pricing pressures and Intel's response to such actions; Intel's ability to respond quickly to technological developments and to incorporate new features into its products; and the availability of sufficient inventory of Intel products and related components from other suppliers to meet demand. Factors that could cause demand to be different from Intel s s expectations include customer acceptance of Intel and competitors' ors' products; changes in customer order patterns, including order cancellations; changes in the level of inventory at customers; and changes in business and economic conditions. The gross margin percentage could vary significantly from expectations based on changes in revenue levels; ls; product mix and pricing; variations in inventory valuation, including variations related to the timing of qualifying products for sale; excess or obsolete inventory; manufacturing yields; changes in unit costs; capacity utilization; impairments of long-lived lived assets, including manufacturing, assembly/test and intangible assets; and d the timing and execution of the manufacturing ramp and associated costs, including start-up costs. Expenses, particularly certain marketing and compensation expenses, vary depending on the level of demand for Intel s s products and the level of revenue and profits. Intel is in the midst of a structure and efficiency review which may result in several actions that could have an impact on expense levels. The tax rate expectation is based on current tax law and current expected income and assumes Intel continues to receive tax benefits for export sales. The tax rate may be affected by the closing of acquisitions or divestitures; the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities; and the ability to realize deferred tax assets. Gains or losses from equity securities and interest and other could vary from expectations tions depending on equity market levels and volatility; gains or losses realized on the sale or exchange of securities; impairment charges related to marketable, non-marketable and other investments; interest rates; cash balances; and changes in fair value of derivative instruments. Dividend declarations and the dividend rate are at the discretion of Intel s s board of directors, and plans for future dividends may be revised by the board. Intel s s dividend and stock buyback programs could be affected by changes in its capital spending programs, changes in its cash flows and changes in the tax laws, as well as by the level and timing of acquisition and investment activity. Intel s s results could be affected by the amount, type, and valuation of share-based based awards granted as well as the amount of awards cancelled due to employee turnover and the timing of award exercises by employees. Intel s s results could be impacted by unexpected economic, social, political and physical/infrastructure infrastructure conditions in the countries in which Intel, its customers or its suppliers operate, including military m conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations uations in currency exchange rates. Intel s s results could be affected by adverse effects associated with product defects ects and errata (deviations from published specifications), and by litigation or regulatory matters involving ng intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory y matters described in Intel s s SEC reports. Please refer to Intel's most recent Earnings Release and most recent Form 10-K K or 10-Q Q filing for more information on the risk factors that could cause actual results to differ. Rev. 7/19/06