Another $100 56-kbps modem here
Diamond Multimedia joins the act as vendors continue to price products aggressively to gain share in the cutthroat modem market.
Diamond will be one of the first K56flex-based modem vendors to release a v.90 modem. 3Com announced last month that it will introduce a 56-kbps modem that is backwards-compliant with its x2 technology.
The new "v.90" standard was agreed upon by the International Telecommunications Union last month. The long-awaited industry consensus is expected to help spur sales of 56-kbps modems.
Previously, consumers and Internet Service Providers (ISPs) had to choose between modems supporting 3Com's x2 technology or K56flex modems supported by Lucent and Rockwell. The new v.90 standard eliminates this problem.
Diamond says it will offer standards-based 56-kbps modems with a $100 price point throughout 1998.
"Diamond is not the premier modem vendor, and as a result of that they have to have a lower cost strategy," said Forrester Research analyst Maribel Lopez. "They don't really have a choice. They can't be a price leader, but they could be a price follower."
Diamond said that the new SupraExpress modems will connect at speeds above 50 kbps with ISPs using equipment made by Ascend, which has historically supported the K56flex technology, and 3Com.
In related news, 3Com says it is making software upgrades to the new v.90 standard available for older 33.6-kbps and x2 modems available on its Web site today.