On the surface this newsy article about Intel’s push into mobile phones is yet another pronouncement from the world’s leading chip manufacturer. It is not!

First it is part of Intel’s continuing strategy to dominate those chip sets that are used most often. Notice the area is not PC’s but Telephony. They’ve moved consistently in this direction over the past few years.

Second Mr. Otellini - Intel’s COO - practically recites Moore’s Law. He is saying that Intel will drive prices down and capabilities up with unmarred regularity - doubling component densities every 18 months while halving prices.

If you’re a reader of our commentary, you know that we support the view that the Networked Society will be the biggest technological shift on the planet over the current decade. Part of that argument is based on Moore’s Law bringing the cost of the “network access device” down to where it is possible to buy and own for 30-40% of the world’s population.

Otellini’s comments support that contention and buttresses the idea that the Networked Society will prosper and grow.

ed.
Terry and Lisa Wellman
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Article:

Intel Makes Mobile Phone Push with Designs, Deals

Wed Feb. 25,12:44 AM ET

Technology - Reuters

By Eric Auchard and Lucas van Grinsven

CANNES, FRANCE (Reuters) - Intel on Wednesday will reveal designs for future mobile phones and key deals with big network operators and manufacturers in Europe and Taiwan, as it aims to shake up the mobile industry with computer economics.

In a speech at the wireless communications industry's biggest trade show in Cannes, France, Intel Corp. (NasdaqNM:INTC - news) Chief Operating Officer Paul Otellini plans to spell out the No. 1 chip maker's plans to drive its ever lower-cost semiconductors into wireless markets.

"To think that phones are not subject to the laws of silicon is naive. They are just small computers," Otellini told Reuters in an interview ahead of his speech at the 3GSM World Congress.

His sweeping declaration of Intel's intentions to remake the mobile phone industry in its own image must overcome resistance from a fragmented global industry accustomed to broad-based collaboration rather than change driven by a single company.

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