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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / OCTOBER 6, 2003: VOL. 2 NO. 40

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Breaking News - Networking:

3Com, Huawei Align, Develop New, Inexpensive Routers

3Com Corp has announced the introduction of a new line of routers that it created with Chinese partner Huawei Technologies co. The products, said to be low-cost, are supposed to drive down the prices of communications products for businesses.

Ideally, network equipment will, like PCs in the last decade, continue to improve as prices drop.

The new partnership, as well as the new line of routers, will hopefully spark economic improvement for 3com, which hasn't came out in the black in three years, and is experiencing an 80 percent decrease in sales since the late 1990s.

The routers are comparable with those of 3com's competitors, but cost as much as 30 percent less, partially because of Huawei's inexpensive engineers and manufacturing.

3Com might be ahead of the game, as it appears that the pressure to decrease the price of network equipment is increasing. Dell recently announced its work on network equipment, and customers are also taking advantage of used equipment from sources such as Source Inc, which is currently selling more used gear than new.

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