3 – 3Com


FACTSHEET

Address: 1116-1120, International Trade
Tower
Nehru Place
New Delhi — 110 019
Tel.: 011-6293177-78
Fax: 011-6236509
Web site: www.3com.com 

3Com
owes its growth this year fully to its outstanding performance
in the booming Indian carrier market. Its performance in its
traditional strength areas–the low-end LAN equipment market–was
lacklustre. 3Com’s hub sales saw a decline, while NIC and
modem businesses were flat. This, along with its exit from the
high-end enterprise business, created a lot of confusion.

Growth came in from the
RAS segment. Its other segments didn’t create any breakthrough
achievements. However, 3Com was able to open up cable modem line
of business. It did a business of close to Rs 50 crore in the
carrier market.

3Com did not follow the
normal pattern of restructuring exercises. 3Com created new
businesses from the acquisitions. Similarly, when everyone is gung-ho
about the enterprise business, it has decided to
exit that business. Then instead of building the so-called
” complete solution portfolio” for all kinds of
carriers, it is focusing on a two-pronged strategy. For the
legacy network operators, it has built flexible multi-services
(IP/wireless/DSL/cable) access platforms (Total Control series)
that integrates smoothly with the all-pervasive protocol of the
telco space–# SS7. For the IP-based service providers, it has
an-end-to-end solution approach. Summary: It has chosen to
partner with–and not challenge head on–the large telco
equipment vendors who understand the carrier market too well.

In 1999-00, it got major contracts from
Satyam, VSNL, ISP India, and Caltiger. It has sold to about 40
ISPs. In the cable Internet market, 3Com had an order booking
for close to 5,000 cable modems and four CMTS systems. In the
telco market, it made a business of close to Rs 7 crore selling
its solution that will allow fax/e-mail over WLL to all the
basic service providers who use CDMA–namely Bharti, Tata
Teleservices, Shyam Telelink, and MTNL.

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