President and CEO of Intel Corporation, Paul S. Otellini, addressed AmCham members at a special luncheon held at the Four Seasons Hotel in Cairo on June 6. Addressing the topic of “Egypt ahead: ICT and economic development,” he spoke of global trends affecting technology in developing markets, and how those trends will create economic opportunities in Egypt.

Otellini began by noting that although this was his first trip to Egypt and the region, Intel has had a presence in the country for several years through its World Ahead program, which aims to increase connectivity in the developing world. This investment, combined with solid government policies, is already beginning to show results, he said. “The technical expertise and steady growth of ICT adoption in Egypt has already made a large impression on me. For example, Egypt now has the highest Internet usage on the African continent, with more than 7 million users, and PC and Internet use is expected to grow by 30 percent this year. The ambitious programs begun by Prime Minister Ahmed Nazif, and executed by Minister [of Communication and Information Technology Tarek] Kamel, along with the public and private sector partnerships, are starting to show the impact that technology can have on the prosperity of a nation.”

Huge improvements in technology have meant better products and more online users. “From my perspective, we’re in the midst of an Internet spiral,” Otellini said. “I see an increasingly reinforcing cycle of richer media services coming online and content coming online, driving more users on the Internet, which in turn drives more rich media services and content.”

He expects that these new users will come primarily from developing markets such as Egypt. “We speak of this as the next billion users. These next billion users will come online in the next five years, much faster than the first billion users connected to the Internet. Connecting the next billion users is a daunting challenge, but it’s also an opportunity – it’s an opportunity for the technology industry, it’s an opportunity for entrepreneurs around the world.”

The requirements to connect the next billion users, however, will depend on three new areas: low-cost computer access, Internet connectivity and education. He said WiMax – a wireless broadband service that transmits Internet data via an antenna to users up to 50 kilometers away – eliminates the need to wire every building. Given its cost efficiency, the wireless solution could prove vital to low-cost connectivity.

Intel is actively supporting several pilot projects worldwide that implement WiMax technology, including the Oseem Village project in Egypt. “These pilot projects are exciting stepping stones which can lead to city-wide and ultimately country-wide WiMax coverage,” Otellini said.

Turning to low-cost computing, the Intel chief pointed out that new technologies and new business models will ultimately drive down costs. They are also creating opportunities for partnership. As an example, he pointed to the work that Egyptian engineers are performing to develop the next generation prototype of a low-cost notebook for children across the developing world. “These local designs can only happen with local presence and local talent. Egypt’s engineering talent is a major reason why Intel created our platform definition center here in Cairo – one of only four in the world,” he said.

Another new technology is a high-powered microprocessor that Intel recently developed. Displaying the tiny chip to the audience, Otellini boldly stated that it would be “as revolutionary a microprocessor as the first microprocessor Intel developed almost 30 years ago, and more so than the Pentium was in the early 90s.” The reason, he explained, is because it could lead to single-chip computers, which would reduce costs and when connected with wireless broadband networks like WiMax, “will make computers pervasive.”

Otellini also showed the audience a prototype of a new machine that Intel developed – what he described as a blurring of a personal computer and a mobile phone. “What if the cell phone got a little bit smarter and what if the computer got a little bit smaller. And what if connectivity was in the air and not through a wire?” He said such a low-cost machine has the potential to reach a whole new market to bring people into the Internet and bridge the digital divide.

While upbeat about the opportunities for Egypt to realize its potential in the development and application of new technology, Otellini said certain preconditions would be necessary. “I believe it is critical to have government policies for lower tariffs on computer and communication products and a technology-neutral radio spectrum to accelerate the adoption of technologies like WiMax and mobile Internet devices,” he said. “You have a wonderful opportunity to act now and lay down a vital foundation to connect millions of Egyptians to the worldwide web so they can participate in the global marketplace.

Following his presentation, the Otellini answered questions from audience members regarding a range of topics, such as his opinion on the role of China and India, mobile telephony, WiMax versus 3G technology, future Intel investments in Egypt, Google and handheld device technology.