Irvine, Calif.-Based Chipmaker at Center of New Push to Network PCs
Knight Ridder Open, 11/10/2000 11:31:00 PM
Nov. 10 (The Orange County Register/KRTBN)--IRVINE, Calif.--Broadcom Corp. will today begin a major push to get computer networking into the home with tech giants Gateway Computer, America Online and hot start-up Transmeta.
The Irvine-based communications-chip maker will provide the core components that enable a new line of Gateway personal computers to hook up with other PCs and devices through a home's phone lines.
Broadcom and the other companies are hosting a news conference in New York today to demonstrate the features of a home network, using a new Gateway Internet appliance with Broadcom chips. "This is the first time that a major consumer-PC manufacturer has looked up and said, `I'm going to put home networking down as a standard in all my product lines, '" said Jeff Thermond, manager of Broadcom's home-networking division.
The network allows PCs, and, eventually, TVs and stereos, to access the Internet and get data, video and music by plugging into a home's phone jacks. Users can make telephone calls at the same time, because the data moves along the lines at different frequencies.
The home network turns standard phone wiring "into a complete multimedia line," said Thermond.
"With Broadcom as a partner we're going to do something that's going to really change the way people use their devices in the home," said John Spelich, a Gateway spokesman.
The home-networking market will grow to $1 billion in sales by 2002, according to Cahner's In-Stat Group, an industry-research firm.
But the sales aren't as important as the effort to spread the technology to the everyday user, said Alex Guana, an analyst with Banc of America Securities.
"They're creating a new world order. A new processor, a new connectivity protocol, all being offered by the most innovative companies in their fields," he said. "This changes everything." Broadcom's stock rallied Thursday after falling $67.19 in two days.
By Chris Farnsworth
Ibexx |
