3Com Corp yesterday announced an alliance with Microsoft Corp under which the two will develop co-branded networking products to enable home users to share internet access, peripherals and applications. Under the partnership, the two said they would work together to deliver Ethernet and home phone line networking kits within the second and third quarter of this year, and future versions will allow wireless data transmission and connectivity over home electrical wiring. The news follows 3Com’s announcement in January to set up a home networking division in a bid to cash in on the increasing number of US homes purchasing one or more PCs, which IDC estimates to be around 25 million. At the time, the networking giant said it was working to develop technology to allow PCs to be connected using standard telephone lines.

Under Thursday’s announcement, 3Com said it will expand its offering to bundle and optimize its technology with upcoming features in Redmond’s Windows operating system, specifically its internet connection sharing facility. The latter will be bundled in the same box as 3Com’s hardware, alongside newly-developed installation and set up software from Microsoft. Redmond is also working on a set of what it calls lifestyle applications, including shared family scheduling, family messaging, distance learning and entertainment such as multiplayer gaming and high- quality, whole-house audio on demand, which will also be bundled as part of the networking kits.

As well as enabling two or more family members to simultaneously surf the web, users will also be able to share applications and files at the same time. 3Com said the home phone-line solutions will be compatible with HomePNA (Phone Network Alliance) standards and will provide 10Mbps performance, the same as today’s Ethernet standard. There will also be an Ethernet version, operating at 10Mbps and 3Com said it is also considering releasing a fast Ethernet, 100Mbps version, at the same time. The problem with Ethernet is that users will have to rewire their homes, but according to Roy Johnson, VP of 3Com’s home networking unit, houses in the US are increasingly being built with Ethernet cabling already wired in, so users will be able to take advantage of the higher speeds without having to go through any disruption, he said. Johnson said the kits will be available in a range of form factors, including USB adapters to enable straightforward plug-and-play connectivity, as well as standard PC cards.

Officials from 3Com and Microsoft said one of the aims behind the kits was to enable families, with little or no technological knowledge, to enjoy the benefits of networking in the same was as office workers can. The wireless kit is expected before the end of the calendar while the version that works on home electricity wires will be launched in early 2000, Johnson said, adding that 3Com and Microsoft will continue to work together to deliver more networking products in the future. Prices will available at launch.