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(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, Benhamou said.

    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)

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    Updated: Tue Aug 11 17:59:41 1998 PDT