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September 17, 1998


By CBR Staff Writer

Rumors doing the rounds suggesting that Intel Corp may cement its market in the low end networking space by acquiring 3Com Corp are causing quite a stir, but before everyone runs out to buy 3Com shares three key issues need to be examined. Intel is already under investigation by the Federal Trade Commission, so it is unlikely to acquire its major competitor in the low end networking equipment devices. The acquisition of 3Com would give Intel an effective monopoly in the Network Interface Controller card market as 3Com has a 51% market share and Intel has a 23% share according to In-Stat first quarter figures. Secondly, Intel can potentially side-step 3Com, by integrating NICs and modems straight onto the motherboard.

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