Microsoft and Intel are expected today to announce a joint attack on the fast-growing telecommunications equipment business, marking their biggest push yet into an industry worth an estimated $250 billion a year.
Together with hardware suppliers Hewlett-Packard and Nortel, the two are expected to unveil an alliance that, if successful, could open up a huge new market for Microsoft's Windows NT operating system and Intel's Pentium microprocessors.
Most telecoms equipment currently operates on proprietary software using chips produced by a range of manufacturers, including Motorola.
The venture could also advance the introduction of corporate networks combining voice, data and video signals on the same infrastructure. At present, the telecoms bridge between most companies and the public network handles only voice traffic, and sits alongside separate data equipment.
The plan is for Nortel to build routers, switches and servers for corporate computer networks running Microsoft NT software and handling both data and voice communications.
Roger Wery, executive vice-president of Renaissance Worldwide, a consulting firm, said the technology alliance could act as a wedge giving Intel and Microsoft their first big stake in telecoms equipment. The open technology architecture of Microsoft and Intel's "Wintel" alliance could bring down prices rapidly, he added.
