Carrier focus highlights modem merger >BY WAYNE CARTER, Associate Editor-News

U.S. Robotics' strong presence in the carrier and Internet service provider markets played a key role in its merger last week with 3Com Corp.

By adding Skokie, Ill.-based U.S. Robotics' Total Control Hub-used by public carriers and ISPs to route data calls-and new x2 modem technology to its stable of products, 3Com will immediately become a major player in providing data transmission equipment to Bell regional holding companies and ISPs.

"That was the major reason for 3Com making this acquisition," said Kieran Taylor, broadband consultant with TeleChoice Inc., Verona, N.J. "It gives [3Com] more credibility in the central office and ISP market.

"This is a very good move," said Lisa Pelgrim, a senior analyst at San Jose-based Dataquest Inc. "3Com hasn't been all that active in the carrier market.

Eric Benhamou, 3Com's chairman and chief executive officer, said the company's strategy is to throw its weight behind U.S. Robotics' ISP and public carrier products to push them to the industry lead. "We expect [U.S. Robotics] to take the lead there, and we expect our resources to help accelerate what they have going on there," he said.

The merger pits 3Com against Cisco Systems Inc. in the race to be the largest data networking hardware provider, with other companies well off the pace, Pelgrim said.

Taylor believes that the deal is driven by companies moving away from in-house computer networks-3Com's main business-to wide area networks run by public carriers. "We're starting to see private enterprise networks shrinking," he said. "3Com saw the writing on the wall."