Cisco Systems could also step in to promote WiMax technology.

Under the pact, Intel will review state-owned BSNL's roadmap for the WiMax rollout here and develop basic standards for the rollout and applications. The agreement also aids BSNL in developing soft interfaces needed for interoperability between Wi-Fi, WiMax and the IP backbone while creating linkages with other Indian carriers working with Intel.

The partners said they will work on a pilot WiMax implementation that is spectrum-efficient and economical for rural markets, a high priority for India. The deal also calls for setting up a proof-of-concept lab to study wireless broadband technologies.

Intel also launched a government-industry wireless initiative here on Thursday (Aug. 28) aimed at speeding the introduction of wireless services across India.

By 2012, the government hopes to link 500 million Indians to the Internet via more than 100 million broadband connections and another 100 million broadband devices, said A. Raja, federal minister for communications and information technology.