Taipei - Intel plans to spend at least 500 million US dollars over the next five years on procuring and promoting a wireless communication system, a company official said in Taiwan Monday.

Intel vice president Sean Maloney made the announcement while signing a cooperation agreement with Taiwan's Economics Ministry.

Under the agreement, Intel would spend at least 500 million US dollars between 2008 and 2013 on the procurement of and investment in the Worldwide Interoperatbility for Microwave Access (WiMAX) system in Taiwan.

WiMAX is a wireless digital communications system, also known as IEEE 802.16, that is intended for wireless networks in cities.

It can send and receive wireless data over long distances in a variety of ways and can provide broadband wireless access up to 50 kilometres for fixed stations, and 5-15 km for mobile stations.

In contrast, the WiFi/802.11 wireless local area network standard is limited in most cases to only 30-100 metres.

Intel opened a WiMAX office in Taiwan in March.

Economics Minister Ho Mei-yueh welcomed the agreement between Intel and Taiwan.

"It holds great business opportunities for Taiwan," she said. (dpa)