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  • May 2004
  • Background Note
  • HBS Case Collection

56K Modem Battle

By: David B. Yoffie and Deborah Freier
  • Format:Print
  • | Pages:3
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Abstract

Examines the battle to set the standard for the 56K modem. Set in 1996, this case looks at how computers accessed the Internet via a telephone line, or dial-up connection, and a hardware modem. In 1995, there were 18.6 million total modem unit shipments, with market revenues of $5.8 billion. The dominant manufacturer of modems was U.S. Robotics, a company based in Skokie, Illinois with 20 years of experience in the modem business. In September 1996, U.S. Robotics announced x2--a new modem technology that could transmit data at twice the bit rate of a 28.8kbps modem. U.S. Robotics had control over the patents that were crucial to the 56K technology. Yet, a few weeks after U.S. Robotics' announcement, Rockwell and Lucent declared the near introduction of a similar 56K technology called "K56 Plus." Both x2 and K56Plus would be able to communicate with older modem standards, although not with each other.

Keywords

Announcements; Revenue; Patents; Product Launch; Network Effects; Standards; Competition; Information Infrastructure; Internet and the Web; Technology Industry; Illinois

Citation

Yoffie, David B., and Deborah Freier. "56K Modem Battle." Harvard Business School Background Note 704-501, May 2004.
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About The Author

David B. Yoffie

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