Services With New Ethernet-Over-Broadband Technology
3Com Corporation (Nasdaq:COMS) today announced the 3Com(R) Visitor and Community Network (VCN) System and relationships with service providers who plan to use the system to deliver a new breed of Internet access services to consumers and businesses. The new system will enhance Internet connectivity speeds and provide value-added information and business communication services for people in hotels, airport lounges, apartment buildings, multi-tenant office buildings and other locations.
The system's hallmark is its ability to deliver corporate-class Ethernet speed (10 megabits per second) connections and customized web-content over existing telephone wires in buildings to guests and tenants -- a dramatic performance improvement over typical dial-up Internet connections (56 Kilobit per second or less) for users and dramatic improvements for service providers because installing the service requires no re-wiring. The system includes next-generation DSL technology called "Ethernet-over-VDSL" and also delivers services via wireless, cable and commonplace "structured" wiring networks.
Equally important, the 3Com VCN System gives service providers a way to deliver a new variety of lucrative services to building owners and property management companies, including: "instant-on" Internet access, digital audio- and video-on-demand, customized web-based content (such as building-specific and local retail services) and IP telephony. The result is a radically simple system: easy to install, provision, use and manage.
Strategy for a New Market
Drawing upon its broad product line and third parties, 3Com's VCN strategy is to offer a rich solution to premier telecommunication service providers -- each with it unique specialty and added value --such as vertical industry-focused application service providers (ASPs), major telephone companies, competitive local exchange carriers (CLECs), and Internet service providers (ISPs). The VCN System can help these service providers create attractive new services for hotels, condominium complexes, public spaces, etc.
The 3Com VCN System is already installed in buildings by service providers in North America -- and soon, overseas. Its Ethernet compatibility over commonly installed telephone wiring makes it simple for millions of people to use -- even when away for their offices --because Ethernet is the most popular business network technology.
Improving Internet access for business travelers, consumers and office workers, the system also enables service providers to offer a new range of lucrative on-site and web-based services attractive to facility owners. For example, the system enables a hotel or condo complex owner to provide their own Internet portal to guests and tenants, along with web-based paid-for advertising services such as nearby auto rental, restaurant and banking services, plus weather reports, flight reservation services and more.
"VCN demonstrates how 3Com is committed to winning business by combining innovative technologies and innovative business models that enrich people's lives while making network access effortless," said Bruce Claflin, president and COO, 3Com. "Our VCN Systems' enriched connectivity and radical simplicity truly makes networking as easy-to-use as any common utility -- like water, electricity and telephones. Consumers and businesses can expect more remarkable innovations from 3Com in the future."
Innovative, Next-Generation DSL Solution
3Com Visitor and Community Network System products announced today are based on new technology -- Ethernet-over-VDSL -- that enables data to travel at high speed over common telephone wires to each room within a building along with telephone calls. For service providers focusing on multi-unit buildings, this new generation DSL technology represents significant advantages over ADSL technology: it is faster to install; doesn't require expensive central office asynchronous transfer (ATM) equipment; and is aligned with trend toward Gigabit Ethernet metropolitan area networks.
Utility-like, the system provides instant Internet access without any modem-dialing or software or hardware addition or reconfiguration to a user's laptop or desktop computer. The system simply recognizes any Ethernet-equipped computer that plugs into it and makes the instant connection. Making complex technology simple to install, use and manage, the 3Com VCN System consists of: a small desktop device; a backroom device for connecting more than one room; and advanced third-party server software. The new VCN products provide a foundation for creating additional services using IP telephony and wireless other products form 3Com.
(For more technical details, see additional press release, "3Com's Visitor and Community Networking Products Bring Radically Simple, Fast, Content-Rich Broadband Internet Access To Millions," also issued today.)
New Relationship with Third Party Developer
3Com announced that it has signed a Memorandum of Understanding paving the way for it to resell the SolutionIP(TM) suite of server software from SolutionInc Limited. These innovative products provide end-users with seamless access to the new 3Com Visitor and Community Network System. (See press release issued today "3Com and SolutionInc Strengthen Relationship to Target Visitor and Community Network Market.")
Premier Service Providers Deliver the "New Utility"
3Com today announced relationships with a variety of prominent service providers who plan to use the 3Com VCN System in their managed Internet access services, including:
- CAIS Internet (Washington, DC, Nasdaq: CAIS) - This industry-leading service provider plans to implement 3Com's VCN
System for a wide range of environments and businesses such as hotels, airport lounges and apartment complexes. CAIS alone has master agreements to provide Internet access to 1.3 million hotel rooms in North America.
- Cincinnati Bell Telephone (Cincinnati, OH) - This trend-setting telecommunications carrier and subsidiary of Broadwing Inc., (NYSE: BRW) plans to launch its new Suite Advantage (sm) Internet service for multi-dwelling, multi-tenant buildings based on the new 3Com VCN system.
- MDU Communications International, Inc. (Totowa, NJ, OTC: BB: MDTV)
- This leading Canadian national operator for Star Choice digital satellite TV services, plans to offer Internet services in the US and Canada using 3Com's VCN system. MDUC has the added firepower as a new national operator for Direct TV in the US.
- StarView (Ardmore, PA) - This leading, privately-held cable TV operator in the US hotel and apartment building market plans to expand its services to include 3Com VCN based Internet access services.
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