New 3Com CEO Mao to be based in China

by Stephen Lawson

April 29, 2008 —

3Com, the U.S. networking
vendor now looking to operations in China for a competitive edge, has named
a new CEO who will be based in that country.

The new CEO, Robert Mao, will replace Edgar Masri, who is leaving the company
after less than two years. But in what may be a promising sign for 3Com, former
longtime executive Ron Sege is returning as president and chief operating officer.

3Com struggled for years against larger rival Cisco
Systems, but in 2003 it formed H-3C,
a joint venture with Chinese networking giant Huawei
to develop and build products in China for both that market and the rest of
the world. In late 2006, under Masri's leadership, it bought out Huawei's share
in the venture. H-3C didn't go far toward re-establishing 3Com's market share
in the U.S., but the company says it now has a dominant market share in China.
Last year, Masri said the difference in salaries between China and other countries
created an "arbitrage opportunity" for 3Com.

More recently, Bain Capital
and Huawei proposed acquiring 3Com, but the deal
fell apart. Concerns over 3Com security technology getting into the hands
of Huawei, which is linked to the Chinese government, raised a hurdle to the
deal.

Mao's appointment will help support 3Com's growing and profitable China operations,
3Com said Tuesday. Now 64, Mao led Nortel
Networks' business in greater China from 1997 to 2006 and most recently
was 3Com's executive vice president of corporate development. He is fluent in
both Mandarin and English, 3Com said. Mao earned a master's degree in material
science and metallurgical engineering from Cornell University and a master's
degree in management from the Massachusetts Institute of Technology.

Sege, 51, will be based in the U.S. and will focus on 3Com's operations outside
China, reporting to Mao. He worked at 3Com from 1989 to 1998, including as executive
vice president of its Global Systems Business Unit. Most recently, Sege was
president and CEO of Tropos Networks, a wireless mesh equipment vendor. Sege
will re-join 3Com on April 30.

Sege will also join 3Com's board of directors. Mao will remain on the board,
which is led by former 3Com and Palm chief executive Eric Benhamou.

IDG News Service