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To: Steven Angelil who wrote (15790)3/18/1997 8:48:00 PM
From: Ian Mahoney   of 18024
 
3Com Considers Dropping Rockwell's 56K Chip for Modems

Washington, March 18 (Bloomberg) -- 3Com Corp. may drop
plans to build 56K modems based on Rockwell International Corp.'s
chip, 3Com Chairman Eric Benhamou said.
3Com has been a long-time supporter of the Rockwell
technology. 3Com agreed last month to acquire U.S. Robotics
Corp., which makes modems with a competing and incompatible
technology, known as X2. Both technologies aim to deliver
computer information at 56 kilobits per second, the fastest of
any modem to date.
``We have done due diligence on the (U.S. Robotics X2)
technology and we believe it is months and months ahead of any
other technology,'' Benhamou said.

Benhamou said no final decision has been reached, although
he was disappointed by a delay of 1 to 2 weeks in the first
volume deliveries of Rockwell's chip to modem makers. Rockwell
announced the delay last Friday.
``Delays in the high-technology business are extremely
dangerous and can be fatal,'' he said. ``Whoever can get there
first with a strong solution is going to have a very strong
market share advantage,'' he added.
U.S. Robotics' X2 modems have been in stores since early
this month.
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