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USRobotics
USRobotics
USRobotics
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U.S. Robotics Corporation, often called USR, is a company that produces USRobotics computer modems and related products. Its initial marketing was aimed at bulletin board systems, where its high-speed HST protocol made FidoNet transfers much faster. During the 1990s it became a major consumer brand with its Sportster line. The company had a reputation for high quality and support for the latest communications standards as they emerged, notably in its V.Everything line, released in 1996.

Key Information

With the reduced usage of voiceband modems in North America in the early 21st century, USR began branching out into new markets. The company purchased Palm, Inc. for its Pilot PDA, but was itself purchased by 3Com soon after. 3Com spun off USR again in 2000, keeping Palm and returning USR to the now much smaller modem market. After 2004 the company is formally known as USR. USR is now a division of UNICOM Global, and is one of the few providers left in the modem market today. The division employs about 125 people worldwide.[1]

History

[edit]

USR was founded in 1976 in Chicago, Illinois (and later moved to Skokie, Illinois), by a group of entrepreneurs, including Casey Cowell, who served as CEO for most of the company's history, and Paul Collard who designed modems into the mid-1980s. The company name is a reference to the fictional company U.S. Robots and Mechanical Men which featured prominently in the works of Isaac Asimov. The company has stated it was named as an homage to Asimov because in his science fiction works U.S. Robots eventually became "the greatest company in the known galaxy",[2] and USR appeared in I, Robot (2004) as the fictional company itself.[3]

In its early years (circa 1980), USR was a reseller of computers, terminals and modems.[4] At the time, commonly available modems ran at 300 bit/s, but 1200 bit/s using the mutually incompatible Bell 212A and V.22 standards were available at much higher price points. Even in 1983, 300 bit/s remained the most common speed.[5] In 1984, the V.22bis standard provided 2400 bit/s service, but these remained high-cost devices.

USRobotics Courier 2400 Modem with serial cable attached (mid-late 1980s)

USR sold its first modem, the Courier, to corporate customers starting in 1979. In 1984, the breakup of AT&T greatly lowered the cost of the testing needed for connection to the telephone network, which led to lower prices and wider use of modems. They began offering the Courier to the public in 1984.[6]

In 1986, USR introduced their Courier HST, short for "High Speed Technology". Using trellis encoding, HST provided 9,600 bit/s speeds, leapfrogging the standards efforts and offering four times the performance for about twice the price of a 2400 bit/s model. In 1989 HST was expanded to 14.4 kbit/s, 16.8 kbit/s in 1992,[6] and finally to 21 kbit/s and 24 kbit/s.

USR was not the only company making modems with proprietary protocols; Telebit's TrailBlazer series of 1985 offered speeds up to 19.2 kbit/s, and Hayes also introduced the 9600 bit/s Express 96 (or "Ping-Pong") system. However, USR became the most successful of the three, due to a marketing scheme that offered large discounts to BBS sysops. It was a favourite in this market not only for its performance, but its superb stability, with sysops suggesting new sysops "Just get the Courier, you will NOT be disappointed, it is excellent."[6]

U.S. Robotics Sportster 14,400 Fax Modem (1994)

The proprietary nature of HST allowed USR to maintain its market predominance even when off-brand V.32-based modems began selling for less than equivalent HST modems. As the price differential decreased, however, V.32-based modems eventually became a cost-effective alternative to HST. USR countered by creating ever-faster HST protocols, starting with a 14.4 kbit/s mode, and by producing "Dual Standard" modems that were able to communicate with both HST and V.32 modems at high speeds. In spite of many modems with similar performance on the market at even lower price points, the Courier's retained their legendary reputation for quality and reliability, "Once you have used a Courier, nothing else is a modem in your book at any price. They are the very best there is."[6]

To compete with the ever growing market for low cost consumer models, USR introduced their Sportster line. These supported only V.32 and later standards, they retained their own higher-speed HST standard only for the Couriers. During this time, Couriers were available in V.32, HST, or the more popular Courier Dual Standard models which supported both. The Sportster used the same motherboard as the Couriers, and on certain 14.4 kbit/s models a sequence of AT commands could be issued to enable the faster 16.8 kbit/s HST mode.[7] The Courier modems remained a favorite in the BBS and emerging Internet service provider world, where they were known to run without problems for extended periods of time (although the initial large-scale deployment of Courier modems in the CompuServe network uncovered a serious bug, which would cause the modems to crash and stop answering calls under high call volumes).

USR Sportster 56k 117102 ISA modem supporting X2 and V.90

A similar situation emerged a few years later when the 56 kbit/s V.90 standard was first being proposed. USR developed its own 56k standard known as X2, while a consortium of other companies introduced its own K56flex. In contrast to the success of HST, neither X2 nor K56flex saw any real market uptake, as it was clear they would soon be followed by V.90 modems. After the introduction of V.90, USR abandoned support for X2. In a further effort to reduce the retail price of its modems, USR also marketed a Winmodem that used software running on the host computer to perform some of the modem functions.[6]

Some models of Courier modems were known for their long-term upgradeability, because they used an upgradeable DSP design. For example, when the Courier V.Everything modem was first released in 1994 under the product label "Courier V.34 Ready".,[8] it shipped with only V.FC support, because V.34 had not been released. A free V.34 firmware upgrade[9] was made available later via FidoNet, as well as the Internet. USR then surprised many early Courier V.Everything modem owners with a limited-time free offer of an X2 firmware upgrade, which added 56K speed capability. Finally, USR released a V.90 upgrade that was compatible with X2-upgraded Courier V.Everything modems. Even the 1994 hardware released pre-V.34 was fully V.90-upgradeable without hardware modification.

There was a licensing key needed for some Courier V.Everything V.90 flash upgrades. The firmware could be loaded onto the modem, but it would work in "degraded" V.34 mode. After paying a fee, and having the modem dial USR, a license key was installed that enabled the V.90 functions.

Commoditization

[edit]
U.S. Robotics 22Mbit/s Wireless PC Card (2002)

USR acquired Palm, Inc. in 1995 and subsequently merged with 3Com Corporation in June 1997.[10] It was then recreated as a spin-off of 3Com in June 2000, assuming 3Com's entire client modem business except for the Palm-related portion, which itself had been spun off with Palm three months earlier. Other portions of the original USR remained part of 3Com as the CommWorks Corporation. USR then quickly built up its device portfolio, including not only traditional dial-up modems, but also wired- and wireless-networking components.

USR was acquired by private equity firm Platinum Equity for an undisclosed amount of cash in 2005, believed to be between US$30 million and US$50 million.[11]

By 2010 the company was focused only on the traditional modem business.

In 2013, USR was acquired by UNICOM Global.[12]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

USRobotics

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from Grokipedia
U.S. Robotics Corporation, often abbreviated as USR, is an American technology company specializing in modems, routers, switches, and other networking hardware designed for reliable connectivity in business, industrial, and remote management applications.
Founded in 1976 in a garage in Skokie, Illinois, by Casey Cowell and four partners, the company drew its name from the fictional "U.S. Robots and Mechanical Men" in Isaac Asimov's science fiction works, reflecting its early focus on innovative communication devices.
USRobotics launched its first modem product in 1979 and quickly grew into a leader in dial-up technology, with its Courier and Sportster modem lines becoming industry standards for speed and reliability during the 1980s and 1990s, powering much of the early internet expansion.
By the mid-1990s, the company had expanded into wireless networking and handheld computing through the Palm brand, achieving annual revenues exceeding $2 billion before its acquisition by 3Com Corporation in 1997 for approximately $6.6 billion, which integrated USR's modem expertise into broader networking solutions.
Following the 3Com merger, USRobotics faced challenges from the shift to broadband but was divested in 2000; it was later acquired by private equity firm Platinum Equity in 2005 and then by UNICOM Global in 2013, refocusing on legacy modems, cellular connectivity, console servers, and Ethernet devices for mission-critical uses like point-of-sale systems and out-of-band management.
Today, as a subsidiary of UNICOM Systems, USRobotics continues to innovate in robust, industrial-grade hardware, including 56K dial-up modems, USB cellular modems, and serial-to-Ethernet converters, serving sectors requiring dependable, low-maintenance networking amid evolving digital demands.

Corporate History

Founding and Early Years

U.S. Robotics Inc. was founded in 1976 by Casey Cowell, along with partners Paul Collard, Steve Muka, and others, in Chicago, Illinois, with an initial focus on developing computer peripherals for the burgeoning personal computing market. The company drew its name from the fictional "U.S. Robots and Mechanical Men" in Isaac Asimov's science fiction works. The company began operations from Cowell's apartment in the Hyde Park neighborhood, where the founders pooled approximately $200 to launch their venture, targeting hardware solutions for early personal computers such as the Apple II released the following year. As demand grew, the firm secured additional investments to support expansion, enabling development of compatible peripherals for systems like the Apple II and, after its 1981 debut, the IBM PC and its compatibles. The company's early headquarters remained in Chicago until 1984, when it relocated to a larger facility in , to accommodate increasing production needs. U.S. Robotics launched its first product, an acoustic coupler modem, in 1976, followed by its inaugural direct-connect modem in 1979 after regulatory changes by the permitted such devices. By 1981–1982, the company introduced basic modems including the Model 212A, compatible with Bell 212A standards for 1200 bps asynchronous transmission, and the Model 103, adhering to Bell 103 standards at 300 bps, both aimed at hobbyists and small businesses seeking affordable connectivity for personal computers. Amid the personal computer boom of the mid-1980s, U.S. Robotics experienced significant growth, reaching approximately $20 million in annual revenue by 1985 primarily from modem sales. The company expanded its workforce to around 200 employees during this period to meet rising demand. In 1985, it introduced the Courier 2400 , its first high-speed offering supporting 2400 bps via the V.22bis standard, which quickly became popular among business users for faster data transfer over standard phone lines. This product line solidified U.S. Robotics' position as a key player in enabling remote access for early PC users.

Expansion and Acquisitions

In 1991, U.S. Robotics completed its on the exchange, raising $28.3 million by offering 2,380,000 shares of . This move provided capital for expansion amid growing demand for high-speed modems and positioned the company as a publicly traded entity focused on networking and communications hardware. The same year, U.S. Robotics launched the Sportster series, a 14.4 kbps priced under $200, which undercut competitors and drove significant . By 1993, the Sportster had captured 40% of the U.S. retail market for 14.4 kbps modems, bolstering the company's leadership in dial-up . To diversify into , U.S. Robotics acquired Megahertz Holding Company in 1994 for $213 million in stock, integrating Megahertz's PCMCIA expertise for laptops and enhancing portable connectivity offerings. The following year, the company acquired Palm Computing for $44 million, marking its entry into personal digital assistants. This led to the 1996 launch of the PDA, which quickly became a and expanded U.S. Robotics' portfolio beyond traditional modems. Fueled by surging internet adoption and partnerships with internet service providers such as , U.S. Robotics achieved revenues approaching $2 billion in its fiscal year ending June 1996, reflecting a 122% increase from the prior year's $889 million. These milestones solidified the company's growth trajectory in the mid-1990s networking boom.

Ownership Changes and Modern Era

In June 1997, 3Com Corporation completed its acquisition of U.S. Robotics in a stock swap valued at $6.6 billion, marking one of the largest mergers at the time and integrating USR's operations into 3Com's broader networking division to strengthen its position in data communications. As part of post-acquisition restructuring, 3Com spun off its Palm Computing subsidiary—originally acquired through USR—in 2000 as an independent via an , enabling 3Com to refocus on core networking amid the emerging dot-com bust and declining demand. In 2005, acquired the remaining USR assets from in an all-cash transaction estimated at approximately $40 million, redirecting the company's emphasis from consumer-oriented modems toward enterprise-grade networking solutions to adapt to evolving market dynamics. On June 7, 2013, UNICOM Systems, Inc., a subsidiary of , purchased U.S. Robotics from in an undisclosed all-cash deal that encompassed its U.S., U.K., and German operations, broadening UNICOM's portfolio in connectivity and IT infrastructure. As of 2025, U.S. Robotics operates as a division of , with headquarters in , employing approximately 87 people and concentrating on business-to-business solutions in networking and IoT connectivity.

Products and Technologies

Dial-Up Modems

U.S. Robotics (USR) played a pivotal role in the development of dial-up modems during the 1980s and 1990s, producing hardware that enabled reliable phone-line-based for businesses and consumers alike. The company's modems were renowned for their robustness, supporting key features such as error correction via V.42 standards and data compression through V.42bis, which improved transmission efficiency over noisy analog lines. These innovations allowed users to achieve higher effective throughput without requiring pristine connections, making USR products a staple in early online connectivity. The series, introduced in 1985 as a high-end business-oriented , exemplified USR's focus on professional-grade reliability and represented the company's flagship line through 1998. Initial models, such as the 2400-baud , offered speeds up to 2.4 kbps and were priced competitively at around $699, undercutting many competitors while providing full-duplex operation. By the early , the series evolved to support V.32bis at 14.4 kbps and later V.34 at 33.6 kbps, incorporating (DSP) for field-upgradable that enhanced performance. A standout feature was the integration of USR's proprietary HST protocol for faster connections in compatible setups, though the series emphasized broad standards compliance. The 's rugged design and remote diagnostics capabilities made it ideal for enterprise environments, where downtime was costly. In contrast, the Sportster series, launched in 1991, targeted affordable consumer access and quickly became USR's best-selling line, running until around 2000. Starting with 1200- and 2400-baud models, the Sportster adopted a low-cost DSP architecture that reduced manufacturing expenses, enabling prices as low as $149 for 28.8 kbps versions by the mid-1990s. The 1997 introduction of the Sportster 56K model, supporting up to 56 kbps via USR's x2 technology (later upgraded to V.90 and V.92), revolutionized home internet by delivering download speeds up to seven times faster than prior 33.6 kbps modems. This version's v.everything firmware ensured seamless backward compatibility with older standards like V.34, K56Flex, and even pre-V.32 protocols, allowing it to connect reliably across diverse networks without manual reconfiguration. The Sportster's plug-and-play simplicity and voice/fax capabilities appealed to everyday users, solidifying its role in popularizing dial-up for web browsing and email. USR's dial-up modems achieved significant market dominance in the , capturing approximately 40% of the U.S. retail market by the mid-decade and over 43% of the high-speed segment. In 1995, the company supplied modems bundled with personal computers from major vendors like and Gateway, contributing to an estimated 15% share of all PC-integrated modems sold in the U.S. This bundling strategy, combined with aggressive pricing and superior reliability, propelled USR revenues to hundreds of millions annually, with the Sportster alone driving mass adoption of home connectivity. By the late , USR held a leading position in the $4 billion global market, though competition from standards wars like x2 versus K56Flex temporarily fragmented compatibility until the V.90 unification in 1998. As technologies like DSL and cable proliferated in the early , demand for dial-up modems declined significantly, but USR continues to produce and support them for niche applications, such as legacy systems and remote diagnostics, as of 2025. This enduring support underscores the lasting impact of USR's dial-up innovations on the foundational era of personal .

Networking Equipment

Following the acquisition of Megahertz in 1994, U.S. Robotics expanded its portfolio beyond modems into (LAN) hardware, leveraging Megahertz's existing expertise in PC card adapters for Ethernet connectivity. By 1996, the company introduced 10/100 Ethernet hubs and switches designed specifically for the small office/home office () market, enabling faster data transfer rates and simplified network expansion for emerging business users. These products featured auto-sensing ports and plug-and-play installation, addressing the growing demand for affordable Ethernet infrastructure in non-enterprise settings. In 1995, U.S. Robotics introduced the Total Control network, a modular chassis-based system tailored for service providers (ISPs) and remote access applications. This platform supported up to 192 ports through expandable shelves and network interface cards, allowing scalable deployment of analog and digital lines for dial-up connectivity in enterprise environments. The system's emphasized reliability and hot-swappable modules, facilitating maintenance without service interruptions for high-volume remote access servers. Under 3Com's ownership starting in 1997, U.S. Robotics entered the market with the launch of 802.11b access points in 2000, rebranded for business applications to complement wired LAN setups. These devices operated at speeds up to 11 Mbps and were positioned for secure extensions, integrating with existing Ethernet backbones to support mobile users in corporate settings. Key advancements in U.S. Robotics' networking lineup included the USR8200 router series introduced in 2002, which incorporated (VPN) passthrough, stateful packet inspection firewall capabilities, and (SNMP) for centralized monitoring. These features provided robust security and manageability for small to medium-sized enterprises, enabling secure remote access and traffic filtering without requiring dedicated hardware. U.S. Robotics positioned its networking equipment to compete directly with Systems in enterprise segments, focusing on cost-effective alternatives for and ISP markets.

Current IoT and Connectivity Solutions

Under Global's ownership, U.S. Robotics has shifted its focus toward industrial-grade connectivity solutions tailored for machine-to-machine (M2M) communications and (IoT) deployments, providing robust hardware for remote monitoring and data transmission in sectors such as utilities, transportation, and . These solutions emphasize reliability in harsh environments, enabling legacy equipment integration with modern networks while supporting secure, low-latency connections essential for . Serial device servers from U.S. Robotics, such as the Courier Console Port Server (USR4204), facilitate the conversion of serial ports to Ethernet, allowing legacy industrial devices like sensors and controllers to connect seamlessly to IP-based networks without extensive rewiring. Introduced for enterprise applications, this series supports remote access to up to four serial devices simultaneously, with features like integrated and out-of-band monitoring to ensure uptime in critical systems. These servers have been in production since the mid-2010s and remain a staple for bridging older /485 interfaces to Ethernet in industrial settings. In the realm of cellular connectivity, U.S. Robotics offers routers like the Courier M2M LTE Cat 1 Cellular Gateway (USR3513), which provides LTE/ support for remote site monitoring in utilities and transportation, incorporating GPS tracking and VPN capabilities for secure . Certified for PTCRB compliance, this model enables from wired connections to cellular, delivering speeds up to 10 Mbps downlink for real-time and applications. While models are not yet listed in the core portfolio as of 2025, the gateway's modular design supports future upgrades and operates in rugged enclosures suitable for outdoor deployments. Current offerings include network TAPs for traffic monitoring, such as the USR4523 Aggregation TAP, and cellular gateways like the USR3513 LTE Cat 1 for remote M2M communications. U.S. Robotics IoT gateways, exemplified by the Courier M2M series, integrate protocols like over serial or Ethernet for system compatibility, alongside for lightweight pub/sub messaging in cloud-connected setups targeting smart cities and factory automation. These gateways aggregate data from multiple sensors, enabling edge processing to reduce bandwidth needs and latency in distributed IoT networks. The IoT segment contributes significantly to UNICOM's portfolio, with connectivity solutions driving operational insights across enterprise applications.

Innovations and Impact

Key Technological Contributions

U.S. Robotics pioneered the High-Speed Transfer (HST) protocol in 1986, a proprietary modulation scheme that enabled reliable 9600 bps data transmission over standard analog phone lines using trellis-coded modulation and asymmetric signaling, avoiding the full-duplex retraining required by contemporary standards like V.32. This innovation allowed seamless transitions between half-duplex and full-duplex modes without reconnection, significantly improving connection stability and speed for early systems and remote access applications. The protocol was later extended in 1989 to support 14.4 kbps, maintaining while pushing the limits of voiceband modems before widespread adoption of international standards. In parallel, U.S. Robotics contributed to the evolution of standards by early implementation and advocacy for enhancements in data and modulation. The company was among the first to support V.32bis, ratified in 1991, which extended V.32 capabilities to 14.4 kbps with improved fallback rates from 4800 to 14400 bps, facilitating broader commercial deployment of high-speed dial-up. For communications, U.S. Robotics integrated Rockwell's V.FC (V.Fast Class) protocol in 1996, a proprietary precursor to V.34 that achieved 28.8 kbps speeds over phone lines, enhancing in pre-standard environments. A major firmware advancement came in 1997 with the x2 technology, an asymmetric protocol enabling download speeds up to 56 kbps while uploads remained at 33.6 kbps or lower, leveraging digital-to-analog conversion at the ISP end to bypass analog noise limitations. This innovation, downloadable via flash upgrades to existing modems, directly influenced the ITU-T's V.90 standard adopted in 1998, which harmonized x2 with competing K56flex to create a unified 56K framework. These developments, embodied in products like the series, underscored U.S. Robotics' role in accelerating reliable broadband-like access over legacy infrastructure. By the late , U.S. Robotics advanced hardware through custom ASIC integrations in modems, optimizing for lower power draw and enhanced noise immunity in high-speed operations. These contributions not only refined but also paved the way for scalable networking in the emerging era.

Role in Internet Development and Commoditization

U.S. Robotics played a pivotal role in facilitating widespread during the by dominating the dial-up market, which powered the explosive growth of online users in the United States. By the late , the company held approximately 40% of the retail , supplying reliable hardware that connected millions to emerging web services and systems. This infrastructure was instrumental in the surge of U.S. users, which rose from about 25 million in (9.24% of the population) to roughly 120 million by 2000 (43.1% of the population), transforming the from a niche tool for academics and hobbyists into a mainstream communication platform. The commoditization of modems accelerated through the 1990s, driven by standardized chipsets from manufacturers like Rockwell Semiconductor and Lucent Technologies, which drastically reduced production costs and retail prices. Early high-end models, such as the 1985 Courier HST modem, retailed for around $600 or more due to proprietary technology and custom components, but by 1998, 56K modems had fallen to under $100, with some models available for as low as $50 amid intense price competition. This shift eroded profit margins across the industry; U.S. Robotics, for instance, enjoyed gross margins of 35% or higher on modems in the mid-1990s, but commoditization and volume-based pricing compressed them toward single digits by 2000 as chipset makers enabled low-cost replication by competitors. In response to these dynamics, U.S. Robotics pivoted toward bundled (OEM) sales, integrating modems into personal computers from major vendors like , which hastened their ubiquity in consumer households and businesses but intensified market saturation. Fierce competition from rivals such as and Zoom Technologies further pressured pricing, as these firms adopted similar chipset strategies to undercut premium brands, leading to a flood of affordable, standardized connectivity options by the late 1990s. U.S. Robotics' remote access servers, including the Total Control series, also underpinned early (ISP) infrastructures, supporting operations at providers like Netcom by enabling scalable dial-up connections that bridged the gap to broader adoption. The legacy of these efforts contributed to the cultural shift from intermittent dial-up sessions to an expectation of "always-on" connectivity, as users increasingly demanded faster, uninterrupted access that modems alone could no longer provide. Following the 1997 acquisition by and divestiture in 2000, U.S. Robotics was acquired by in 2005 and refocused on niche enterprise markets, emphasizing secure remote access and industrial connectivity solutions to sidestep the cutthroat consumer price wars. In the , as a of UNICOM Systems since 2013, the company continues to innovate in robust hardware for IoT and mission-critical applications, including serial-to-Ethernet converters and cellular modems.

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