As expected, Intel announced today that its Centrino 802.11a/b/g chip will become available in September: The chip will come with updated software that includes a configuration wizard, updated troubleshooting, and automated security set up. The software also includes the most current version of Cisco's extensions so the chips are compatible with Cisco access points.
The new chips will also support 802.11i.
Intel is far behind some others in the industry in introducing a combined 802.11g and 802.11a chip. Atheros built its first combined chip nearly two years ago. Still, Atheros regards Intel's entrance into the market space as good news. "By moving Centrino to a/g, it will pump up the mass market in the U.S., which helps us," said Sheung Li, a product line manager for Atheros. He figures that Intel will grow the market, spurring opportunity for others at the same time.
IDC expects that combined 802.11a/g will become the dominant Wi-Fi standard by 2006, with 802.11g hitting its peak in 2005. Intel's entrance into the combined 802.11a/g market, especially in the notebook space, should help ease the transition away from 802.11g to 802.11a/g, said Ken Furer, research analyst with IDC.
For now, 802.11a has been largely viewed as technology for business users in the United States, Li said. But he expects Intel's new chip to follow a similar story as when Intel began building support for faster Ethernet into its chips. "People perceived 100 (megabit) as the high end. Then Intel ships it and now you can't buy 10 (megabit)," Li said.
He expects the added reliability of 802.11a to increase the types of applications that may be used on Wi-Fi networks. For example, at a recent Microsoft conference, a Microsoft executive touted its Windows media center, but recommended that users employ 802.11a networks instead of 802.11g networks because of the lowered chance of interference.
The upgraded software from Intel will also compete with software that other chip makers including Atheros also offer. Such add-ons can offer a needed boost for chipmakers. "The software provides a way to differentiate and it's a higher margin business in a market where the price of chips is crashing down," Furer said. As chips become commoditized, the software allows chipmakers to differentiate themselves, especially against the very low cost Taiwanese competitors, he said.