3Com, Siemens Muscle Up

The data communications company teams up with the German giant to make a grab for a healthy chunk of the digital voice-communications market. By R. Scott Raynovich.

Two more companies have pledged to plug phones into the Internet within the next year.

Siemens and 3Com on Wednesday confirmed plans to spend US$100 million to go after the digital voice-communications market, in which data-networking equipment is used to route voice calls over data networks and the Internet.

The goal of the joint venture is to supply the necessary computer hardware and software pieces for sending voice traffic over data networks. This could result in considerable savings for companies and individuals, compared with using the more expensive Public Switched Telephone Network, or PSTN.

Siemens and 3Com will jointly develop and market products that will include LAN telephony gateways, Ethernet-capable phones, and networking adapters, according to statements released by the two companies Wednesday. The first products are expected to ship next year. Such equipment could pave the way for using PCs for voice collaboration and conferencing, call centers for Internet-based retailers, and voice-enabled customer service.

The two companies, which have been partners since 1997, hope the combination of their strengths can compete with rivals such as Lucent, Cisco, and Nortel. Those firms also have plans to supply products that meld voice and data networks.

Siemens is a leader in telecommunications equipment while 3Com's strength lies in data-communications equipment, including network switches and adapters.