3Com and Siemens get together on the LAN

NEWS Networking specialist, 3Com has joined forces with Siemens to develop a range of LAN (Local Area Network) telephony. However, according to one leading analyst, the technology will only become a commercial success if offered at prices at least 30 per cent below current telephony products. The venture is further evidence that data networking companies are moving into a market traditionally dominated by private branch exchange technology. The two parties will invest $100m and place 200 engineers to develop products. Jean-Louis Seguineau, programme director at Meta Group, welcomed the move as the "first tangible offering from the two converging worlds" for the local area. However, he advised customers to wait until next year for the second generation of LAN technology products and urged 3Com and Siemens to drop prices if they want to succeed. Katie Hartley, research analyst at IDC, believes the move makes sense. "3Com know Ethernet and Siemens know voice. This move will enable 3Com to get into the Wide Area Network," she said.