Publications
Publications
- May 2004
- HBS Case Collection
56K Modem Battle
By: David B. Yoffie and Deborah Freier
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.