3Com unloads CommWorks unit for $100 million
UTStarcom Inc. said it will acquire "selected" assets of 3Com 's carrier-focused CommWorks division for about $100 million.
UTStarcom said it will add CommWorks' voice and data products to its own line of IP switching gear and leverage CommWorks' customer base to extend its reach beyond China, Japan, India and the South American region. UTStarcom currently sells gear to companies such as China Telecom, China Netcom, Yahoo! BB in Japan and Cable & Wireless.
In CommWorks, UTStarcom gains access to a line of softswitches, media gateways, remote access servers and a variety of IP applications. In turn, 3Com said the sale will help the company narrow its focus on the enterprise networking sector.
For 3Com, the unloading of CommWorks marks the latest in a string of decisions to get out of particular segments of the broadband market. In mid-2001, 3Com dropped its consumer-broadband modem line, including its menu of cable modems. CommWorks, the division that is heading to UTStarcom, later that year jettisoned its cable modem termination system products. CommWorks shipped its last CMTS on Sept. 1, 2001.