Alcatel and Intel are working together to define, standardise, develop and integrate WiMax wireless broadband access technology.
WiMax offers broadband access where Digital Subscriber Line technology is unable, for technical or economical reasons, to reach.
The alliance aims to deliver commercial products by the second half of 2005.
Alcatel said the deal would allow it to offer "seamless broadband" for consumer and business customers irrespective of their location.
Intel added that Alcatel's experience in the telecoms equipment market would help to ensure that emerging WiMax offerings, based on Intel's silicon, would be commercially viable.
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