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Zoom 56-kbps Modem for $100

As competition in the 56-kbps market heats up, manufacturers are dropping their prices, if only for a short time.

By Lisa Moskowitz, PCWorld   

Zoom Telephonics, traditionally less expensive than the modem industry%squots giants--U.S. Robotics and Motorola--is offering a $30 rebate on its 56K Flex Modem, bringing the retail price down to about $140 for an external model and $120 for an internal, said Zoom representative Ray Zamagni.

In addition, select stores, including Best Buy, are offering $20 mail-in rebates on these products. After the rebates, the internal modem will cost about $100. Zoom%squots rebate offer ends September 30, and Best Buy%squots ends August 31.

Zoom is not the only modem vendor making deals. Both U.S. Robotics and Motorola have similar offers. After rebate, the USR Sportster 56K internal will cost approximately $169, and the Motorola ModemSURFR 56K internal will cost approximately $150. These offers end November 15 and October 3 respectively.

What will happen to prices once these offers expire? Currently, suggested retail prices range between $150 and $250, although street prices can be up to $40 less. Abner Germanow, an analyst with IDC, said he expects prices to continue falling as competition keeps heating up.

%dquotPrices for 56K modems are dropping as you get new entrants into the market and as the market grows,%dquot he said. %dquotI%squotm expecting an average retail price of $180 by the end of the year.%dquot

Although 56-kbps modems are becoming more affordable, it is still difficult to actually attain high connection speeds. A battle between U.S. Robotics and Rockwell/Lucent Technologies over 56-kbps protocols has split modem makers and Internet service providers into two camps: those that support U.S. Robotics%squot x2 technology and those that support Rockwell%squots K56flex technology. A standard is expected to be set by the International Telecommunications Union by mid-1998. Until then, if you buy a 56-kbps modem, make sure it%squots based on a standard your ISP supports.

These modems also only run at top speed when downloading from a compatible server. Messages sent upstream by a 56-kbps modem can%squott go faster than 33.6 kbps. In fact, an old Federal Communications Commission rule prevents them from running any faster than 53 kbps downstream even under the most optimal conditions.

The other option is to go with a 33.6-kbps modem with a 56-kbps upgrade option. Prices for 33.6-kbps modems have fallen through the floor, Germanow said. One of the lowest priced modems recently tested and recommended by PC World and is Zoom%squots $79 FaxModem V.341 Plus. For the rundown on our September Top 10 modem picks, including three 56Ks, follow the link in the navigation bar to the right.

As slow as the consumer market and the industry have been to adopt 56-kbps technology, it seems the need for speed will soon make it standard. In the Hardware Report issued by PC Data, sales figures show that 56-kbps modems accounted for 20 percent of the retail modem market in June. In addition, nearly 64 percent of all modems sold in that month offered upgrade options to 56-kbps.