To: Ted The Technician who wrote (3023 ) 9/17/2002 8:16:08 PM From: Sir Auric Goldfinger Respond to of 3076 Home Networking: Are You Ready, And Do You Even Need to Be? 2002-09-17 15:44 (New York) Is home networking/automation really the next big thing for broadband engineering? Or, since your subs can pick up basic equipment at the local computer megastore, is it a case of "who needs it anyway?" What follows is one Pipeline reader's opinion on the topic. If you'd like to share your thoughts, send an e-mail to lhamilton@pbimedia.com. Letters may be published, and edited for style or content. * Inspire Subs by Engineering New Apps -- "Home networking will be a boon to the cable industry. The cable operator will be able to bundle several services together in order to offer home networking on an affordable basis and consumers will love it. The issue is not 'can.' The issue is 'what are the applications to get the ball rolling?' "Currently, high-speed data customers want and use home networks to maximize the value of the $50 a month investment they pay for the high-speed connection. While there are packages available to allow them to utilize their home network to turn their lights on and off, set the sprinkler, or change the temperature, these solutions do not yet inspire the consumer to act. This will change. "Today, more than 20 million households in the U.S. have a security system. On average, many of them paid $800 to install it, and then continue to pay an average of $28 to have it monitored. The average home security system is a crude antiquated home network. If you take a traditional home security system, upgrade the technology and attach to a high-speed modem - poof! -- you have a new dynamic two way interactive security system that also provides lifestyle features talked about for years, but only now deliverable. "While only in limited deployments with our cable partners, our research shows that customers love the new technology of Security Broadband's SafeVillage system, and use it for a host of applications that are customized to their lifestyles. It also shows that the interest in home networking services goes up appreciably when the services are bundled together, and subs can buy them all for one monthly price. Therefore, being able to change lighting, watering, temperature or other features are additions to an existing valuable service, not standalone killer apps. "An issue for any new service is the perceived value that a customer has once he purchases it. We have tracked the utilization of our product and the customer feedback we have gathered shows that they get value from using the product. Examples include: parents who check to make sure their kids got home from school, an airline pilot who uses the remote capability to check in with his wife and children when away, and an on-the-go executive who can check to see if the cleaning service has arrived and disarms the alarm to let them in. "The examples are endless and the uses keep expanding. Has that important package arrived? Are the kids watching TV or doing their homework? As a result, we continue to see requests for additional functionality on a regular basis as customers identify how it will benefit them. "Will home networking be a boon to the cable industry? Absolutely. It is a natural progression of the industry's offering to the homeowner. The industry started with entertainment (cable) and moved toward the home office (high-speed, telephony), added lifestyle features (VOD), and now moves towards even more convenience, control and peace of mind (home networking and security) for the customer. Once installed the customer will want to expand the functionality because it works, and it makes their life easier. -- William Glasgow, President/CEO, Security Broadband (www.securitybroadband.com)