3Com forms IP-based products subsidiary

(Telephony) Reacting to market conditions and internal synergies, 3Com has created a wholly owned subsidiary called CommWorks to provide IP-based technologies for service providers. Irfan Ali was named president of the new subsidiary, reporting to Bruce Claflin, 3Com's president/COO who will assume CEO responsibilities on Jan. 1. Claflin said that, while CommWorks will operate as a separate entity within 3Com, it will be accountable to corporate guidance. 3Com formed the new organization for two reasons, said Claflin. "Our company has two distinct business models: a high-touch carrier business targeted to approximately 100 telecom service providers worldwide, and a high-volume business targeted to commercial and consumer markets representing millions of connections every year. There is little synergy between the two business models." By breaking out CommWorks, the new subsidiary can focus more sharply on services that can be "accessed in a variety of ways, with particular focus on voice-over-IP, wireless and broadband," he said. Claflin also reported that 3Com is "making excellent progress on our next-generation Total Control 2000" IP platform and expects to demonstrate a live system running VoIP at ComNet next month. Claflin emphasized that 3Com's remaining volume business "will continue to target commercial and consumer markets, providing functionally rich, yet radically simple, networking solutions."