Group promotes wiring standards for 'connected home' (embargoed for 0900 a.m. EDT Wednesday, Sept. 22, 1999) By Monica Summers NEW YORK, Sept 22 (Reuters) - It might not be the Jetsons, but building a "wired" home is becoming easier than you think. A consortium of 15 leading technology, publishing and home development companies, including International Business Machines Corp. <IBM.N>, Lucent Technologies Inc. <LU.N> and Intel Corp. <INTC.O>, said Wednesday they have devised an easy and affordable standard for wiring homes to efficiently handle everything from heating to lighting to Internet access. Since the Internet has become a staple in American lives, they say, more people are looking for ways to use new technologies to their greatest capacity, especially within their own homes. "Wiring America's Homes," as the group is called, is conducting a nonprofit campaign designed to educate new home buyers, and skeptical home builders, and to promote a unified wiring system that can support basic home amenities for less than $2,000. "The reality is that the home that most people live in today is going to undergo a radical change," said Mark Schmidt, director of marketing and business development for IBM Home Networking. "It started with the impact of the Internet, and that's really been the driving force behind a lot of the fundamental changes in the way people live, work and, in this case, build homes," he said. Although the group agrees these systems may not immediately be included in every new house, it does expect that by 2004 more than 45 percent of all single-family homes will want these whole-house wiring systems installed. "The numbers today are pretty small, but the reality is that it ought to be a lot larger just based on the cost levels to get this kind of work done as well as the impact in not having it done," Schmidt said. "The biggest obstacle we face is broad consumer awareness," he said. While certified techno-geeks will most likely be the first to jump on this bandwagon, market research firm Dataquest Inc. estimates there are more than 15 million homes in America with more than one personal computer, indicating a broader market for updated home wiring standards, networking multiple computers and printers within the home. Wiring America's Homes has developed a series of recommended wiring standards that consumers and developers can choose from, designed to handle the a variety of communications, security, entertainment and utility systems that are used in homes. The average cost of adding this wiring is estimated between $750 and $2,000 per home, the group said. Still, people in the home building industry are not convinced that these types of standards need to be imposed on home builders and contractors. "At the moment it is such a big demand on the builder," said Gopal Ahluwalia, director of research at the National Association of Home Builders. "The question the builders really have to ask is whether they want to offer these types of services as a standard offer included in the price of the home, or do they offer it as an option?" Bill Lane, chairman of Wiring America's Homes and chief operating officer of Smart House Inc., said he expects to see a turnaround in sentiment from builders and developers once consumers become more aware of their home wiring options and once demand increases. "Most of the builders know what structured wiring is. But the builders' response is, you know, 'We build houses. When consumers say that's what they want, we'll put it in'," he said. "The consumer has to ask," Lane said. "And the consumer has started to ask." 859-1671, monica.summers@reuters.com)) REUTERS Rtr 10:16 09-22-99 |