Intel is investing $25m (£14.7m) in a joint venture with Pipex to bring long-range broadband WiMax wireless services to the UK’s main urban areas.
WiMax has mainly been touted by analysts as an ideal way for service providers to serve rural areas, where there are a large number of broadband blackspots, but Intel and Pipex will instead cherry-pick urban areas.
The joint venture, named Pipex Wireless, will provide WiMax services to businesses and consumers, with the first services expected in London and Manchester next year.
Pipex Wireless plans to eventually sell its services to the top 50 UK urban centres. Pipex has previously trialled WiMax services in the West Midlands.
Intel launched its first WiMax chip last year and is hoping the possibility of a burgeoning WiMax market will open up a lucrative market for its microprocessors.
WiMax can be used to transmit and receive data over a number of kilometres, much further than short-range 802.11-based Wi-Fi services.