Ethernet kit prices fall at Allied Telesyn

Networking price war continues as vendor responds to 3Com and Bay cuts

Allied Telesyn has upped the stakes in the price war between networking vendors with a two-month promotion offering reduced prices on Ethernet connectivity products.

In an attempt to gain an extra 20 per cent share in the low-cost Ethernet Lan connectivity market, the networking manufacturer has sent out mailing packs to a number of resellers identified by its two UK distributors, Frontline and Micro Peripherals.

Dealers are being offered up to 26 per cent off unmanaged hubs and 28 per cent off Ethernet switches for a period of two months ? unti 6 July.

The Allied Telesyn eight-port unmanaged hub is now offered for #120 ? half the price of Bay?s equivalent ? while its 16-port switch is on offer for #857. The comparable version from 3Com costs #1,447.

The promotion comes weeks after 3Com and Bay both slashed prices on low-end products and as networking vendors face increasing threats from Taiwanese manufacturers who can shift kit in large volumes to European distributors.

Ernie Jones, Northern European MD of Allied Telesyn, said: ?Our job is to protect our low-end bread and butter market at the same time as we move up the food chain towards ATM technology.?

He added that the mailing packs will also contain information on the broad range of Allied Telesyn?s products.

According to a survey by IDC, Allied Telesyn is the market leader in the growing unmanaged Ethernet hub market with a market share of 29 per cent. Jones said: ?We want to grow that leadership into market dominance.?

The networking vendor is also continuing to offer its Frequent Buyer programme, a loyalty scheme that offers resellers free gifts in return for volume purchases.