Philips, 3Com join forces to provide VoIP

Dutch electronics manufacturer Royal Philips Electronics (NYSE: PHG) has partnered with US network equipment vendor 3Com (Nasdaq: COMS) to provide VoIP solutions for 100 Philips clients in Brazil, newspaper Gazeta Mercantil reported. With this agreement Philips and 3Com are expanding a partnership already in effect in Europe. The two companies aim to compete in Brazil's VoIP solutions market against the likes of Alcatel (NYSE: ALA), Nortel Networks (NYSE: NT), Avaya (NYSE: AV) and Cisco Systems (Nasdaq: CSCO). 3Com contributes with network equipment such as switches and routers, while Philips supplies the handsets. Philips' target is to migrate 10% of its PABX clients to VoIP platforms within two years while 3Com intends to boost its VoIP sales so they account for 14% of revenues for the current fiscal year (ending May 2007), up from 8% at the moment. In Brazil, Philips and 3Com are looking to invest US$1mn in the joint venture's first year of operation with the sum targeted mainly toward marketing and promotional events.