(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
| 3Com to Form Network JV with Three Chinese Companies
August 12, 1998 (HONG KONG) -- 3Com Corp. signed a letter of intent with
three Chinese concerns for a joint venture focused on network infrastructure
systems integration and consultancy.
|The Santa Clara, Calif., company's three joint venture partners are Beijing
Kuanguang Telecommunications, Beijing Guochuang Information Technology
and Beijing Yuguangtong Science and Technology Development Center.
Under the letter of intent, the joint venture will lead to the manufacture
of strategic networking products. The total investment from all parties
in the joint venture is estimated to be US$33 million.
According to Eric Benhamou, chairman and CEO of 3Com, converged networks
which combine voice, video and data over a single infrastructure will
be the core of China's information infrastructure as it transforms its
economy to a knowledge-based system.
Providing end-to-end converged networking solutions with the Chinese
partners, 3Com also aims at serving the systems integration and network
consultancy needs of the very largest organizations such as China Telecom,
Apart from the joint venture project, the agreement also includes technology
transfer, an interoperability laboratory for converged networks and
joint development of network solutions.
3Com's joint venture partners are all systems integration and networking
providers in China. Beijing Kuanguang Telecommunications, with its affiliation
to China Telecom, designs and manufactures advanced broadband asynchronous
transfer mode (ATM) switch technology.
Beijing Guochuang Information Technology is affiliated with one of China's
major Internet service providers, China On-Line. Yuguangtong Science
and Technology Development Center focuses on large-scale systems integration.
The joint venture company will initially be operated from Beijing.
It has provisions for expansion of offices throughout China as projects
grow in scope.
(Eleanor Yeung, Asia BizTech Hong Kong Editor)