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Original URL: http://www.theregister.co.uk/2006/05/06/no_cheap_pcs/

AMD, Intel and MIT chastised for cheap PC fight

By Ashlee Vance in Austin (ashlee.vance@theregister.co.uk)
Published Saturday 6th May 2006 00:37 GMT

WCIT The unusual struggle to provide adequate, cheap PCs to the world's poor has gone awry before it really even began in earnest. A group of technology leaders today chastised the likes of AMD, Intel and MIT for failing to cooperate around their efforts to create low-cost computers. Compounding the tension, the leaders added that they'd prefer to see the likes of Nokia and Motorola dumping cell phones on their nations before the PC crowd arrives.

All week delegates here at the World Congress on Information Technology (WCIT) have been wooed by AMD, Intel and MIT. Each organization made a pitch about why its low-cost computer could get the job done better than a rival's similar product.

AMD gave every WCIT attendee one of its PIC (personal internet communicator) products. About the size of a brick, this computer runs on a low-end AMD chip, has a no frills version of Windows and ships with a thick, plastic casing for protection. AMD's CEO Hector Ruiz talked up the device during a keynote at the conference.

Intel too made a showing with CEO Paul Otellini unveiling the Eduwise laptop. Intel believes that the cheap computers should have full operating systems and most of the cutting-edge technology found on more expensive computers. The tiny Eduwise might cost more than AMD's PIC, but it's faster and ships with bright colors meant to attract youngsters.

Meanwhile, MIT's Nicholas Negroponte blessed the WCIT crowd with an appearance at an evening event to make his pitch for the hand-cranked $100 laptop.

The cheap kit consumed much of the conference's attention, which isn't surprising given that attendees are tasked with debating lofty concerns such as ending the digital divide and the like.

Three competing laptop programs is about two too many, according to some of the WCIT delegates who caught all of the pitches.

"When I listen to the multiple presentations here, (I wonder) . . . are they talking to each other in terms of how they can collaborate," said Theogene Rudasingwa, a technology expert from Rwanda. "It occurred to me that probably they are not.

"We need to do a little more in seeing how we can collaborate . . . How can we put all these things together into some kind of sustainable effort that begins to have an impact on people in the developing world."

Such cooperation, however, proves unlikely given the competitive nature of AMD and Intel, in particular. The companies don't see their low-cost PC efforts as long-term charity projects but rather as seeding potential growth markets with their brands. Both companies plan to profit handsomely one day by helping the poor now.

"We are also worried whether AMD, Intel and the MIT professor are talking to each other," said Ibrahim Kaliisa, special advisor on technology to the president of Uganda. "It can be about moral obligation here, but it also must make business sense for these companies. Maybe, that is why they are not talking to each other."

The problem with all the cheap PCs is exacerbated by the notion that PCs aren't the right devices to hand out in the first place unless your main goal is to familiarize children with the AMD and Intel brand.

"I think we need to raise the first question which is should we have a PC-oriented view on communications," said C.K. Prahalad a business professor and author at the University of Michigan. "I believe there is a huge difference between understanding what is universal and what is contextual."

Prahalad backed the idea that there will be more growth and interest around cell phones in the coming years within developing nations. Companies should concentrate on creating affordable service plans and devices that provide the crucial PC-like tools with the phones.

"At the individual level, the people on the ground aren't clamoring for these kinds of devices," said Teresa Peters, a senior program officer at the Bill and Melinda Gates Foundation, referring to the cheap PCs. By contrast, they are hunting down cell phones, she said.

The panelists continue to have problems with the cost of the computers and the nature of the systems. Most people in poorer counties can't afford a $300 or $400 machine that has most of the cutting-edge features nor do they want a $100 machine that's hardly usable.

There are, however, instances where the cheap PCs – or in fact any PC – make sense.

"We do need to be careful when we pick on those organizations," Peters said, making Bill and Melinda proud. "I am skeptical that the woman in a village needs a $100 PC, but there are college students all throughout Africa that could benefit. They are doing what they can do, and we need to give them some kudos for that."

We continue to wonder how much sense it makes to have all these organizations putting time, money and energy into creating such specialized gear. PCs and laptops fall in price at a steady rate and get smaller and better all the time. How much can a company really improve on what's already available just to cater to emerging markets?

Developing nations could benefit by not making the mistakes that technology-rich countries have already committed to. It's not hard to imagine thin clients, open source software and widespread wireless networks being a better, cheaper long-term combination.

At present, however, the main goal seems to center around extending existing franchises and computing models to the third world. This is understandable from a business point of view but doesn't appear to be what the people really want. ®

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