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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?


To: rjee who wrote (30781)5/11/1999 9:10:00 AM
From: Neil H  Respond to of 45548
 
Tuesday May 11, 8:05 am Eastern Time

Company Press Release

Charter Communications Moves to
Two-Way Cable Network Based On
3Com's Cable Modem Solutions

Leading Cable Operator Expands its Data-Over-Cable Market in St. Louis
With 3Com's Cable Modem and CMTS Architecture

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 11, 1999-- 3Com Corporation
(NASDAQ:COMS - news) today announced that Charter Communications has selected products
from 3Com to expand its high-speed data service offering in the St. Louis market. Charter
Communications, a Wired World Company owned by Paul Allen, is one of the fastest growing
multiple system operators (MSOs) in the cable industry, with nearly 4 million subscribers owned or
under contract.

Charter Communications will introduce the 3Com(r) external two-way cable modem, recently
certified by CableLabs of Louisville, Colo., as areas are upgraded in the St. Louis system. Charter
will also add 3Com's ''external telco return kit'' to the menu of products offered to their one-way
cable customers. Both modem products seamlessly interface with the 3Com's Total Control(r) Cable
Modem Termination System (CMTS) already serving much of its system. Charter Communications
is planning to launch both products this month as part of a their rapidly growing plan to provide
high-speed data services throughout the area.

3Com's ''external telco return kit'' allows a consumer to upgrade from telco-return to two-way
operation without an in-home service call. It is the first such solution in the cable industry to be
offered on a CableLabs standards-based platform. Charter Communications' migration from
telco-return to two-way cable service showcases 3Com's leadership in delivering innovative and
cost-effective solutions to cable operators. By enabling this type of capability, 3Com offers a
complete suite of products--both in the head-end and in the home--that allows operators to offer
high-speed data services in a market before their cable plant is fully upgraded for two-way
capability.

''Our cable modem and CMTS deliver a complete solution to cable operators like Charter
Communications, allowing them to gain a 'first mover' advantage over other high-speed data
competitors,'' said Barry Hardek, Director of Operator Marketing for 3Com's Cable Access
Division. ''We are providing a smooth migration path from telco-return to two-way, giving the cable
industry a way to broaden their coverage area with a minimal cost impact.''

Charter Communications' St. Louis operation serves approximately 140,000 homes, with well over
100,000 active subscribers. 3Com's two-way modems represent the first CableLabs certified
products that Charter Communications has purchased.

Like many cable operators, Charter Communications is aggressively rebuilding its St. Louis cable
plant to two-way capability. They plan to deploy 3Com's two-way modem solution in areas where
upstream service is currently activated. For the portions of the system not yet ''two-way active,''
Charter Communications will introduce 3Com's ''external telco return kit'' along side of their existing
VSP/VSP+ internal modems, enabling MAC and laptop subscribers to receive the Charter Pipeline
data service, as well as preparing for two-way migration. When the one-way plant is activated for
two-way, a simple software download turns the two-way cable modem, the base unit of the kit, to
be enabled for RF upstream capability.

''3Com's new cable solutions are making major contributions to our ability to expand our available
market,'' said John Santangelo, vice president of network operations for Charter's central region.''
3Com's cable modems and CMTS provide us with a flexible, high-performance network that meets
both the needs of our system and our subscribers.''

Telco-Return to Two-Way with Ease

3Com's ''external telco return kit'' cable modem connects to the PC in a similar fashion as the
standard two-way modem -- via Ethernet. An analog modem is connected to the two-way cable
modem in the ''external telco return kit'' configuration through a serial port on the base cable
modem. The two-way modem then functions as an interface to the downstream data, delivered on
3Com's standards-based telco-return system. Upstream data is sent through the analog modem,
functioning as a standard dial-up modem.

The upstream portion of the base two-way cable modem is enabled by downloading new software
to the unit, allowing it to function as a standard RF return cable modem when the upstream cable
network is activated.

In addition to deploying 3Com core cable products, Charter Communications is also taking
advantage of Total Control accessories that further extend 3Com's CMTS solution. The
EdgeServer(tm) remote access server, a Windows(r) NT server on a card, allows Charter
Communications to integrate DOCSIS-related software elements into 3Com's CMTS chassis.

Deployment and Availability

3Com two-way cable modems have been shipped to over 60 sites throughout the world and the
''external telco return kit'' modems are currently shipping in quantity. For more information about
3Com's ''external telco return kit'' cable solution or other 3Com cable access products, cable
operators can contact their respective sales representative or visit 3Com's cable Web site at
3com.com.

About Charter Communications

Charter Communications, a Wired World Company, was founded in 1993 and has achieved
customer growth that is twice the industry average. Headquartered in St. Louis, the company was
ranked as the eighth fastest growing company in the country by Inc. magazine for its 1998 Inc. 500
list. Charter was acquired by investor and Microsoft co-founder Paul G. Allen in late 1998.