Press Release

June 20, 2006

INTEL, VDC and USAID Collaborate To Deploy Wimax In Vietnam

Lao Cai province selected for piloting advanced wireless broadband technology to bring modern communications and world information access to underserved and remote areas

Hanoi, Vietnam, June 14, 2006 – Intel, Vietnam Data Communication Company (VDC) and the United States Agency for International Development (USAID) today signed a Memorandum of Understanding (MOU) to jointly co-lead efforts to expedite the adoption of new generation wireless broadband technologies to enhance the lives and economic opportunity of Vietnam’s rural and remote communities. Together with Lao Cai leadership and local stakeholders, the three partners will collaborate in conducting a one year WiMAX trial using one base station and about 20 end-user locations in Lao Cai province. Further plans are in the works for using satellite links to extend WiMax reach to areas difficult to reach with land-based infrastructure.

According to this MoU, this WiMAX trial will demonstrate the economic and social development value of widespread access to innovative ICT services such as VoIP phone service(voice over internet protocol), on-line games, and modern internet support to schools, community health clinics, vocational and job training centers, local entrepreneurs and small businesses, hotels, and other social needs – while at the same time supporting the community service priorities of local authorities. The deployment is also in synch with the Internet Post Office program, initiated by Vietnam’s Ministry of Posts and Telematics in 1998 which promotes technology accessibility as a cultural hub for local people and ethnic groups.

This collaboration is part of Intel’s Asian Broadband Campaign, a pan-regional program aimed at accelerating wireless broadband deployment throughout Southeast Asian countries.  Intel plans to provide extensive wireless broadband expertise, silicon technology and technical services for governments, telecommunications regulators, education, health and agriculture sector agencies, as well as telecom carriers to help in preparation and conduct of WiMAX trials. Compared to a wired infrastructure, wireless networks are more cost-efficient and far faster to set-up, thus, carriers can be more flexible in offering underserved populations full access to the modern world-wide “knowledge economy” at a more affordable price.

 “Intel believes that WiMAX can help Vietnam become more economically and socially dynamic,” said Gerry Greeve, Vice President, Communication and Media, Intel Corporation. “We collaborate with the government and industry ecosystem to increase technology accessibility and achieve digital inclusion through a cohesive and innovative wireless broadband deployment strategy.  Such deployment will also support all stakeholders in achieving the digital ASEAN vision, and in integrating ASEAN region to become globally competitive.”

Tim Beans, Director of  USAID’s Regional Development Mission Asia (RDMA) said, “During a decade of huge economic and social adjustments, Vietnam’s commitment to the development of its people has already reduced poverty 33%.  During the next decade, ICT and world-wise knowledge access will be key to Vietnam’s global integration and economic competitiveness. We are very glad to support Vietnam’s vision to go far beyond major cities to reach all of its citizens with the benefits of world-wide digital information access and “knowledge economy”. Beans added, “By harnessing leading-edge technologies today – in partnership with both private and public sectors – Vietnam is positioning itself for expanding job creation and creating a more prosperous future as regional and international markets grow and evolve. By working together, American technology leaders and US development expertise are helping to make this possible”

Through the Last Mile Initiative (LMI), USAID seeks to launch an irreversible revolution in the sustainable provision of Information and Communications Technology (ICT) services to rural areas, partnering with both international and local private and public sector interests. The goal is to transform the development prospects of farmers, small businesses, entrepreneurial enterprises, and other educational and community organizations through ICT-driven increases in knowledge, practices and productivity.

“VDC’s vision is to transform Vietnam into the ICT hub of  ASEAN by bringing the country into the broadband age to increase global competitiveness, open new avenues of learning, equal access to opportunities, and to fundamentally transform lives and businesses,” said Vu Hoang Lien, General Director, Vietnam Data Communication Company .

All three stakeholders of the project – Intel, VDC and USAID believe that the keys to success are (a) innovative technology solutions that extend connectivity from the edge of existing networks to the underserved, (b) innovative business models that make the extensions of connectivity sustainable and profitable on their own merit, and (c) the development of innovative content and applications which bring economic and social value to users – and thus turn their connectivity to their strong advantage.

About WiMAX
WiMAX or 802.16 is the next advanced generation of wide-area broadband wireless technology that provides new capabilities as the "last mile" solution for bringing high-speed Internet access into homes, community services and businesses. While the more familiar Wi-Fi* (802.11a, b and g) handles local areas, such as in offices or hotspots, WiMAX can cover far wider metropolitan and rural areas. It can provide data rates up to 75 megabits per second (Mbps) per base station with typical cell sizes of 2 to 10 kilometers. This is enough bandwidth to simultaneously support (through a single base station) more than 60 businesses and community service points with T1/E1-type connectivity and hundreds of homes with DSL-type connectivity.

About d-ASEAN
Intel is working with governments, educators, telecom suppliers and businesses to help create digital villages, provinces, cities, and nations across South-east Asia, accelerating ASEAN’s digitization, driving technologic and economic integration in order to compete with China and India. Intel enables governments to create Digital Cities through the offer of robust network infrastructure, powerful servers for city services, and convenient, all-purpose mobile access anywhere in a community.  The company also supports the development of a digital workforce, integrating technology into education, making PCs more accessible for all citizens, as well as encouraging small businesses to adopt technology for increased productivity and governments to become more electronic.

Intel, the world leader in silicon innovation, develops technologies, products, and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom.

About VDC
Vietnam Data Communication Company (VDC) – a member of Vietnam Post and Telematics Group (VNPT Group) is a biggest Internet provider in Vietnam. VDC delivers innovative and advanced telecommunications services to residential, business and corporate customers

About USAID
The US Agency for International Development (USAID) is the United States government agency responsible for administering U.S. development assistance to support long term socio-economic growth in countries around the world.  USAID’s assistance programs in Vietnam are designed to support economic reform and competitiveness, promote civil society & the rule of law, and mitigate problems challenging sustainable development such as HIV/AIDS, environmental degradation and avian influenza.  Since 1995, the USAID program in Vietnam has expanded into areas such as legal reform, governance, financial sector development, humanitarian needs and anti-trafficking, HIV/AIDS prevention, environmental protection and disaster prevention.  As part of that overall effort, USAID is now supporting a Public/Private Partnership with leading US companies to increase the benefits to rural areas of Vietnam of modern wireless broadband connectivity.  Providing this wider access to the full spectrum of modern communication, along with knowledge, skill, and productivity resources should dramatically improve the development prospects of farmers, entrepreneurs, schools and citizens throughout the country.

CONTACT:
Vu Kieu Linh
PR Manager
Intel Vietnam
Tel: (08) 8233372
linh.vu.kieu@intel.com

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