Intel WiMax plans struggle to gain government approval

US chipmaker Intel has signed a memorandum of understanding to build a pioneering wireless broadband network in two Chinese cities, but may yet have the project blocked by the government. The company’s plans to build the WiMax networks – which work on a similar premise to WiFi but over distances as great as 50 kilometres – in the western city of Chengdu and Dalian on the north-east coast have received a tepid reaction from the Chinese Ministry of Information Industry. The Ministry says it has not yet approved the project and, furthermore, that whilst the government has yet to decide how to set a policy on WiMax, such approval is unlikely in the short term.