IBM, AT&T And Intel Exploring High-Speed Wireless Options A Joint Venture Is Rumored Cingular and Verizon are also said to be participants in national network project.(INTERNET & TECHNOLOGY)

Byline: SARAH Z. SLEEPER

Two weeks ago, wireless watchers got wind of an unlikely team-up: Intel Corp., IBM Corp., Verizon Communications Corp., AT&T Wireless Inc. and Cingular Wireless.

The group, three of whose members usually battle each other for wireless subscribers, was said to be jointly developing a national network using a super-fast, short-range technology known as Wi-Fi, for Wireless Fidelity.

The companies wouldn't confirm the existence of "Project Rainbow" when asked by Investor's Business Daily. Although The New York Times and others reported on the project, AT&T and IBM both called it a "rumor."

Still, IBM, Intel and AT&T Wireless did confirm their individual commitments to the development of Wi-Fi. The idea, they say, is to give business travelers speedy wireless data access. Wi-Fi is fast, faster even than carriers' upcoming third generation wireless networks. Wi-Fi lets users download photos, for example, in seconds, rather than the minutes it could take via 3G.

Wi-Fi, the companies say, is the perfect complement to 3G and will create a new revenue stream for bruised tech and telecom sectors.

"We're looking at it as an opportunity," said Ritch Blasi, a spokesman for AT&T.