3Com Corporation Chairman and CEO Eric Benhamou predicts that the rapid deployment of broadband connections to Internet users and the media-rich applications the connections enable will generate millions of new customers seeking to conduct online commerce.
"High bandwidth technologies, like broadband, make shopping online a more informative experience and economical choice, and will create an exploding opportunity for businesses with the right strategy and model," said Benhamou during a presentation to the FORTUNE/Stanford Graduate School of Business Summit on the E-Corporation.
3Com is a leader in broadband technologies that enable all communications traffic including networking data, voice, and video to run over a single wiring infrastructure, including coaxial cable and telephone lines.
According to a recent study by Merrill Lynch, online business-to-consumer transactions are expected to rise to between $35 billion and $75 billion by 2002, up from about $8 billion a year in 1998. 3Com estimates that the installed base of broadband subscribers will increase from approximately two million this year to more than 14 million by 2002.
"As the network infrastructure expands, the scope and impact of e-business will grow accordingly," Benhamou said. "For example, handheld Internet access through products like the PalmVII wireless connected organizer will further push the boundaries of e-commerce by providing instant access to Internet data."
3Com was recently named one of the top ten e-commerce companies by Business 2.0 Magazine, May 1999. The magazine cited 3Com`s recent acquisition of Smartcode Technologie as part of its plan to extend market share of electronic devices and deliver wireless Web access.
"This rapid shift to conducting business online will expand access to new markets, help improve customer intimacy, retention and profitability, and lower barriers to entry," Benhamou said. "We are entering an era in business when speed matters more than size."
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With more than 200 million customers worldwide, 3Com Corporation connects more people in more ways to information than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com `More connected`. For further information, visit 3Com`s World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.
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