Intel targets small towns

BANGALORE: Chipmaker

Intel, which is setting its sights on increasing its reach into India's

hinterland, plans to go beyond its established channel set-up in the country.

With the recent launch of its “World ahead” program to extend PC and

Internet usage to rural areas, the company is exploring various means of tapping

the market.






“We expect tier- four and —five towns to be different and would take a very
different approach. It will not be just about scaling up the channel. It is

going to happen in many ways. Perhaps we have to learn from what Fast Moving

Consumable Goods (FMCG) companies have done in these areas,” said Ramamurthy

Sivakumar, who recently took over the mantle of marketing director (South

Asia) from Amar Babu.






Intel's global charter over the next several years is to take computing to the
next billion people. “A major chunk of this market is going to come from the

two Asian giants-India and China,” said Sivakumar.






He reckons that this new market opportunity marked the next wave of opportunity
for Intel. “In the first phase, when we started, we focused on six metros.

Then, we set up the Genuine Intel Dealer programs and Intel premium partner

program. This was followed by focus on tier two and three cities.”






He said that usage models would be different in rural markets. “As you go down
market, usage moves from the individual to community ownership. So we are

expecting participation from local and state governments.”






Sivakumar feels that it would be presumptuous to assume that these markets would
need low-cost and affordable computing. “There is common wisdom in the

industry that “waterfall technology” does not work-that you sell latest

technology only in advanced markets.”






He cited the case of The Intel Pentium IV processor, which, contrary to popular
perception, saw more rapid adoption in China and not in the US and Western

Europe.






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