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11/23/2009

Q&A with Eric Greenman, Intel Americas Service Provider Marketing

Q; Eric Greenman, welcome. Thank you for taking the time for this interview. Could you start by introducing yourself and describing your role in Intel’s PC Bundle Program?

A: I work in Intel’s Americas Marketing Group (AMG) supporting our marketing efforts with service providers in the US and in Canada. Earlier this year I was asked to join a team to develop a program that would combine our resources as well as those of our OEM, non-profit and service provider partners along with funding from the federal government’s $7.2B broadband stimulus package to offer unserved (no access to high speed broadband) and underserved (where broadband is available but adoption is low) consumers a cost effective solution for getting a PC and getting online. I should also note that in fact the program is not “Intel’s” PC bundle program but a coordinated effort with our OEM, non-profit and service provider partners.

Q: This is a very exciting project. Could you describe the main attributes of the program?

A: Simply put the program affords those persons who fall into the unserved and underserved categories I described a moment ago the opportunity to obtain a substantial discount on a PC and high-speed broadband connectivity. In addition, the program provides for digital literacy training so that consumers new to the Internet learn how to get the most from it. The goal is to help these groups who have long been on the wrong side of the digital divide integrate the use of the Internet into their daily lives so that they receive the many educational, informational, entertainment and communication benefits that it provides.

Q: Can you specifically indicate who your partners are and where they fit in the program?

A: We have many partners including OEMs Dell, Lenovo, Fujitsu, Velocity Micro, ZT Systems, Systemax, M&A Computer, NeedThese and PC/Laptop offering consumers a wide variety of PC choices, service provider partners like Digital Bridge that filed to provide WiMAX service in a number of states, as well as Connected Nation who will address the digital literacy component of the program.

Q: From a hardware standpoint, how does this program compare with other bundle programs like the 3G/Netbook bundles offered by cell phones carriers?

A: The programs that carriers are offering today differ in a couple of very important ways. First, the product offering is very limited. As you’ve noted, the bundles only offer netbooks, which are designed to be secondary not primary computing devices. In fact this program doesn’t even offer netbooks as an option as our focus is on getting a primary computing device, a notebook or a desktop PC, into the hands of these consumers. The second difference is that the 3G/netbook offers are available only to those persons signing up for wireless broadband service. This program allows for the consumer to get their broadband access via wired or wireless carrier again offering the consumer choice.

Q: Can one choose any hardware platform or are there constraints like with some of the cell phone carriers programs?

A: Choice is a key component of this program and thus a wide range of notebook and desktop PCs are available from a broad variety of PC OEMs. The only products excluded from the program are netbooks as we want to make sure that these consumers have a primary computing platform, one that has all the capabilities and features to do everything they will want and need to do going forward. A laptop or desktop PC has a large screen, an optical drive as well as other features that netbooks do not have. This is why we refer to netbooks as secondary computing devices.

Q: How does this program compare with refurbished computer programs that have been put in place by local government and community organizations?

A: There are many programs out there offering hardware to disadvantaged persons and communities and we at Intel applaud their efforts. Although I won’t speak specifically to any one of these programs I’d say in general that there are three key differences. First, this program offers a new computer, one with the latest capabilities, software and operating system versus refurbished hardware. Second, the program includes broadband connectivity, which we feel is absolutely critical. Last but not least is the educational component. The ability to get support and training so that the consumer understands how to use this new tool is crucial to making sure that they do use it over the long term.

Q: The refurbished computer programs actually carry a cost to the organization, in the range of a $100 per unit, I believe.

A: There is a range of costs associated with executing any type of program. What I will say is that the private/public partnership that we’ve put together helps to share that burden thus making it more cost effective for all the participating entities.

Q: Could the $100 cost of refurbished computers program be applied against your program, to provide an even larger subsidy for the acquisition of a new computer?

A: That’ll depend on the nature of the program and I’m assuming the source of the funding. Let’s just say that we’d be more than happy to speak to anyone involved in that kind of program to see if we couldn’t extend his or her reach.

Q: There have been a series of studies by various stakeholders to identify barriers to broadband adoption in the US. Can you elaborate on this?

A: Two main barriers have been identified: affordability and awareness. Making a PC affordable is at the top of the list but also making sure that consumers are aware that broadband is available in their area is also important. In addition, helping people understand how the Internet can improve their life through information, communication and entertainment is something that needs to be addressed. It’s one of the reasons that Connected Nation’s digital literacy effort is such an important part of this program.

Q: As you roll out this program, what kind of organizations and initiatives can be candidates and how can they get involved?

A: We want to continue to expand the number of service providers, OEMs and non-profits who participate but we are not limited to just those categories of partners. My suggestion to organizations that feel they have something to bring to the table is that they reach out to us, so we can engage in a dialogue and understand how they can help.

Q: How will this program help those organizations already participating achieve their own objectives? We know that broadband adoption is more and more of a challenge compared to broadband deployment. What are the benefits service providers can expect if they participate?

A: All of us have business objectives we need to achieve. Intel and our OEM partners want to be able to sell more hardware and service providers want more paying subscribers on their network. Big companies have the ability to reach big, most commonly well-concentrated audiences. However, if that audience is not concentrated, as is the case in rural areas, or if that audience is disenfranchised, as is the case with certain groups in urban environments, then reaching these people becomes very difficult and expensive. Partnering with Connected Nation, who has relationships with local governments, municipalities and other organizations allows all the partners to establish the necessary one-on-one dialogue with the consumer making this opportunity cost effective and beneficial for all parties involved.

Q: What is the expected outcome for Intel?

A: That will depend first on whether the government provides grant money for the program we are part of and how much our applicant partners receive. Assuming the government does provide some level of funding we look forward to enabling a substantial number of consumers with new PCs, connectivity and training as part of this program.

Q: How much funding has been approved so far?

A: The first round of applications is still under review by the federal government. Applicants are due to be informed mid-December if they will be receiving funding.

Q: What prompted Intel to get into this? You have a number of similar programs in various countries around the world; did you derive lessons from those?

A: Intel has been trumpeting the value of technology at all levels of education, business and government for many years. The presence of broadband drives our business but just as importantly it drives economies, education and much more. Our efforts around the world have helped us to understand the transformative power of the Internet and thus we continue to reach out and drive these types of programs.

Q: How long do you envision the program will run?

A: That will depend on the amount of funding allocated to the program, how quickly we can roll it out and how many consumers take advantage of it. We want to get as many people a PC and online as quickly as possible.

Q: What is the cost saving component of the program?

A: There are numerous studies that speak to the benefits that consumers and businesses receive from being online. Consumers can obtain education, apply for a job, engage their government, be entertained and much more all from the convenience of their home. At the same time businesses and governments can provide products and services less expensively helping to reduce the costs of maintaining physical facilities, phone centers, personnel training, etc. Better service at a lesser cost benefits all.

Q: Any other comment?

A: Let me just say that we see the program as an important part of our efforts, as a good corporate citizen, to deliver to consumers the tools to become a better educated, healthier, smarter, more engaged and more productive part of society. We are a strong proponent of the program, and encourage organizations that are interested in being involved to get in touch with us to discuss how they can participate.

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Q&A with Eric Greenman, Intel Americas Service Provider Marketing

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