Intel hopes to gain a head start on untapped markets in the
Third World by launching World Ahead, a global program that will
pour US$ 1 billion over the next five years to promote computer
training and Internet use in developing countries.
The Santa Clara, Calif.-based company recently unveiled its
five-year project plan, which includes extending broadband access
to one billion users and training 10 million teachers on the use of
technology in education.
A component of the program is the development of a $400 mobile
personal computer, dubbed Eduwise, that will run on Microsoft
Windows or the Linux operating system. The World Ahead program will
also push adoption of WiMax wireless technology that allows high
throughput broadband connections over long distances.
Eddie Chan, lead analyst on mobile computing at IDC Canada, a
Toronto-based research consultancy, believes that Intel is making a
smart move.
Chan said the computer markets in Japan, U.S. and Europe are
mature, registering only a modest 12 per cent growth in 2005
compared to 24.5 per cent for the same period by the so-called BRIC
(Brazil, India and China) regions.
"Penetration in Brazil, China and India is still very low. You
get into those markets early and as they get more sophisticated,
they can purchase more products from you," said Chan.
WiMax is the key in areas where communications infrastructures are
not in place, according to Chan. "Intel has a considerable stake in
this since they are a member of the WiMax forum lobbying
governments to allow adoption of the product," said Chan. "Of
course being a global citizen and bridging the digital divide is
also a part of it."
But that digital divide is not clear-cut. Non-governmental
organizations (NGOs) are challenging Intel to target lower-income
developing countries with resource-poor remote areas rather than
focusing on major cities in countries with established electrical
and communications infrastructures.
"It's much easier to introduce computer technologies into the
big cities of Brazil, India, Mexico or China where there's a large
market, well-developed infrastructure and an educated workforce
than in less developed and rural communities in countries like
Senegal, Indonesia, Uganda or Jordan," said Eric Rusten, director
of new ventures at the Academy for Education and Development (AED),
a US-based NGO that helps individuals, communities and institutions
in developing countries to become more self-sufficient.
Rusten believes Intel should balance its development efforts.
"We recognize that Intel needs to pursue larger and more robust
emerging economies that offer immediate payback, but it is also
important to increase their commitment to helping schools, teachers
and students in the neediest countries."
But there are some aspects of Intel's program that are
progressive. What differentiates Intel's program from others is
that it's geared towards creating sustainable communities and
economies, said Rusten.
For instance, the Eduwise PC developed by Intel will be
manufactured in the countries that it will be deployed in,
according to Rusten. The company will allow local businesses to
build the units and ensure they can be serviced by technicians in
the area.
Intel is also developing the knowledge base needed to sustain
technology. "They're not just infusing money, but they're
reinforcing training by upgrading teachers' skills, improving
connectivity, and creating technology that is suited for the locale
and helping local business."
Rusten is also happy that Intel has established an advisory board
of NGOs to guide the company with its World Ahead program.
But Rusten is not letting his guard down. "The program is well
thought out. But the proof of the pudding is in the eating."
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