Aware?s Perspective of 3Com's Strategic
Transformation
03/21/00
3Com Corporation announced yesterday that it plans to exit the high-end networking business and the dial-up modem business so that it can narrow its focus on high-speed Internet access for the consumer and small to medium-sized business markets. We view this development as positive for the DSL industry in that it validates the importance and size of the consumer DSL market. 3Com long ago recognized the enormous potential of the DSL market. A company of 3Com?s stature also increases the likelihood that the market will develop sooner and larger, particularly if it is focused.
3Com has had a history of differentiation by creating easy-to-use consumer products through vertical technology integration. When the DSL market began to unfold three years ago, 3Com decided to pursue the same objective with ADSL. In 1997, we licensed our ADSL technology to them for use in their ADSL product offerings. Their intention was to use our software and technology along with their technology and expertise to offer an easy-to-use ADSL modem. Today, 3Com uses ADSL chips from Alcatel, a non-Aware licensee, Analog Devices, an Aware licensee, and potentially others in their ADSL products. The 3Com/ADI ADSL modem is a field-proven product.
3Com has not publicly announced any products based on internally developed ADSL technology, and we are not making any such announcements in this perspective piece. In our opinion, 3Com?s focus on high-speed Internet access is terrific for the DSL market and positive for Aware.
This commentary contains certain statements of a forward-looking nature relating to future events or the future financial performance of Aware. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include the risks that Aware has a new and unproven business model, that Aware depends on a limited number of licensees, that Aware depends on equipment companies to incorporate its technology, and that DSL technology competes with other technologies for broadband access. These and other risks are described in various filings that Aware has made with the Securities and Exchange Commission, which risks are incorporated herein by reference.
aware.com |
