Most consumers still prefer that a network installation be done via an Ethernet system wired throughout the home. The wired network is normally more reliable than a wireless system. Wired networks are less likely to have outages or “dead spots”; however, the wireless system can mean less disruption in the house. But recent improvements have led to more installations of wireless systems. CEA reports that 15 percent of home networks are now wireless.

 

But the Diffusion Group says that networking over high-speed Internet lines is likely to remain the top choice for home network buyers. In a 2005 study, the group found that more than 90 percent of home networks make use of at least one LAN-side Ethernet port.

“Virtually every wireless solution sold today has an embedded Ethernet switch or hub with multiple ports of LAN side connectivity,” said Diffusion President Michael Greeson. “Moreover, in most networked households, the desktop PC is connected to the home networking gateway-router via Ethernet while other PCs in the home make use of wireless connectivity. To declare that wireless has somehow eclipsed Ethernet as the dominant home networking technology is erroneous.”

and broadband router so they can share their DSL connection among multiple computers in the home. “We encourage our customers to get the most out of DSL by home networking,” said Marilyn O'Connell, Verizon’s senior vice president.

•  SBC Communications joined with 2Wire, Yahoo! and sat-caster EchoStar to develop a broadband home networking gateway. The device was expected to offer video-on-demand (VOD) services over the Net, which then could be accessed in any room via the network.

• TiVo, the digital video recording (DVR) service, unveiled a home networking option that enables DVR owners to

Other Computer Peripherals Factory Sales
	Dollar Sales (Millions)
2000	1,950
2001	2,150
2002	2,256
2003	2,707
2004	3,032
2005p	3,487

 

Source: CEA Market Research, 1/05

Diffusion says the industry should keep a close eye on “power line” home networking, which it says now represents three percent of the market.

"CE stalwarts such as Sharp and Sony already are involved in power line networking, not to mention Comcast," said Greeson.

But other industry officials say that wireless could be the future of home networking as the technology advances. For instance, in 2004, a new wireless technology called Mimo (it stands for multiple input and multiple output) promised to increase both the range and performance of wireless.

Beyond Wi-Fi, InStat, the research firm, estimates that “ultra-wideband” nodes and chips will jump 400 percent between 2005 and 2008. Unlike Wi-Fi, the firm says that ultrawideband can deliver enough bandwidth to send multiple video streams throughout the house. This will be a key component when the telephone companies unveil their TV services later this year.