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Intel to power low-cost PCs in India

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CIOL Bureau
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BANGALORE - Intel Corp., the world's largest chip maker, said on Tuesday it

would spearhead an initiative to sell cheaper computers in India to increase

usage and desktop penetration in Asia's third-largest economy.

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"Systems will be priced 20 percent less than the lowest priced

Intel-based PCs in India with similar configurations," Intel said in a

statement as its Chief Executive Paul Otellini began his first visit to the

country.

The desktop will be available in two months and will be marketed by Indian

companies like Wipro Ltd. and Zenith Computers Ltd. Intel will also collaborate

with ICICI Bank Ltd. to facilitate loans for buyers.

India's cheapest desktop now costs about 10,000 rupees. Although India is a

globally feted software developer, desktop penetration is abysmal due to high

prices and the absence of continuous power supply in vast tracts of the country.

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Intel, which is facing intense competition from smaller U.S.-based rival

Advanced Micro Devices Inc., plans to spend $1 billion over the next five years

to promote Internet use and computer training in developing markets.

The programme, dubbed "World Ahead" aims to bring high-speed

wireless Internet access to 1 billion people who can't get online.

Intel would also work closely with Indian telecoms firm Videsh Sanchar Nigam

Ltd., part of the Tata group, to offer wireless broadband connectivity at

railway stations.

In December, Intel said it planned to invest more than $1 billion in India to

strengthen its research and development and pick up stakes in telecoms and

technology start-ups.

California-based Intel, which has a huge development centre in Bangalore, has

invested $700 million in India over the past decade.

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