Intel ups bet on ‘cloudification’, edge and energy efficiency for telecoms

US chipmaker Intel is reinforcing its “cloudification” strategy for Latin America's telecom networks, betting on solutions to optimize performance and energy consumption while enabling new 5G applications.

“Our strategy for the sector is to enable the best possible processing. We want to advance distributed computing at the edge, bringing it closer to the customer,” Roberto Corrêa, telecoms head at Intel Brasil, told BNamericas on the sidelines of the Futurecom conference in São Paulo last week

“Our focus is to offer this infrastructure based on Xeon processors, which deliver maximum performance, security and stability, with energy efficiency."

Xeon 6 is the latest version of Intel’s processors and is mostly used in datacenters. According to Corrêa, they are also being widely adopted for core processing in telecom networks.

At Futurecom, Intel announced agreements and projects with TIM, Dell, American Tower and Nokia. With the latter, it is teaming up on the Intel IPM (Infrastructure Power Manager), a software for the core of 4G and 5G networks. 

According to Intel, IPM reportedly increases power efficiency in mobile network processing and saves up to 40% of energy compared to existing solutions.

With American Tower, Intel signed an MOU for the creation of new edge computing and network processing platforms.

The goal is to have communication infrastructure distributed through American Tower sites and towers to support the implementation of micro edge datacenters.

At the end of June, American Tower had 48,242 sites in the region, including towers and in-building and outdoor distributed antenna systems. Brazil accounted for 22,670.

Meanwhile, Brazilian operator TIM is testing the use of Intel processors in laptops connected to its 5G network for corporate applications.

FWA

Unlike its rival Qualcomm, Intel does not have a strategy for powering fixed wireless access (FWA) devices, which function as a kind of modem for residential 5G.

In Latin America, Qualcomm is working with manufacturers such as Brazil's Intelbras to offer these devices.

PERFORMANCE

Intel reported revenue of US$12.8bn in Q2, down 1% year-on-year, and US$1.6bn in losses versus earnings of US$1.4bn.

The company struggled with its Foundry unit, the division that produces its chips, and the datacenter unit. Intel Foundry reported an operating loss of US$2.5bn in the first quarter and an additional US$2.8bn in Q2.

Right after the results release, Intel announced a US$10bn cost cutting plan, including a headcount reduction of more than 15%. The company plans to slash capex by 20% and will not pay dividends for Q4.

In Latin America, Intel has offices in Brazil, Mexico and Costa Rica, with the latter two deemed key for its manufacturing ecosystem.