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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Dec 18 4:00 PM EST
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To: chenys who wrote (20063)8/2/1998 10:06:00 PM
From: joe  Read Replies (2) of 45548
 


>>I don't see any benefit coms would have to keep the modem business unless it can get into a technology that is 5 years ahead from the competitors and make it a standard!<<

The idea behind COMS making money in modems is that modems are
probably going to be around longer than you think. COMS will
be the best at making them because 1) it can tweak them and
make them work better than anybody else 2) it can make them
cheaper than anybody else.

These modems will be selling WORLD-WIDE, not just in the US.
Even if the US is so advanced, that it doesn't need 56K modems,
it will take the rest of the world a while to catch up.

Also, IMO, it's very unlikely that xDSL and Cable Modems are
going to sprint ahead of 56K Modems. (COMS will still be
very competitive in these areas anyways). xDSL and Cable have
been promised for years by the telco's and have they done
anything? There are incompatibilities that make 56K modem
problems look like kindergarden. And, the prices on these
poducts are astronomical compared to 56K modems.

IMO, the xDSL and Cable modems are just a lot of hype at
this point. They still have miles to go before they are
universal, convenient and as cheap to use as the public needs
and as compared to 56K modems.

Everybody's looking for an easy solution to replace
56K modems and improve bandwidth. There is none.

joe
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