3Com To Introduce V.90 Modem At $99

February 27, 1998 (12:00 AM EST)

By Todd Wasserman,

3Com plans to introduce a $99 v.90-based internal modem by the end of March, a spokesman said.

The company plans to release a v.90 version of its entry-level Winmodem before the end of the first quarter, the spokesman said, but 3Com could not confirm a release date. A report in Advertising Age, an ad industry trade newspaper, said the product would ship in late February or early March.

Last week, 3Com began shipping v.90 versions of its Sportster modems, which are now called "U.S. Robotics" modems, at expected street prices of $179.95 (external) and $159.95 (internal).

3Com currently offers an x2-based version of its Winmodem at a $129 (expected street price). Winmodems differ from traditional modems in that they "feed" on a PC's processor rather than using a processor of their own.

Jennifer Glickman, an analyst for ARS, Dallas, predicted the $99 product would prompt further price erosion in the 56-Kbps modem category.

On average, 56-Kbps modem prices have dropped $100 since they began appearing on store shelves last March, Glickman said. She attributed much of the movement to Motorola's introduction of a $99 56-Kbps modem last September. Motorola announced at the time that it was putting its Huntsville, Ala.-based modem business up for sale. There have been no takers so far.