To: H. Wai who wrote (17991 ) 6/23/1998 5:33:00 AM From: SC Respond to of 45548
Network at home with using phone lines. 3Com is a member of the alliance. How much can 3Com from it?zdnet.com Home networking alliance gets nod from bigwigs By Tom Steinert-Threlkeld , Inter@ctive Week Online June 22, 1998 4:36 PM PT Fourteen computer, chip and communications companies on Monday announced an industry alliance that they hope will boost the prospects for networking of personal computers in the home -- an infant and unformed field of interactivity. The Home Phoneline Networking Alliance includes Intel Corp. (Nasdaq:INTC) and Compaq Computer Corp. (NYSE:CPQ), which are also backers of the Universal ADSL Working Group (UAWG). The latter group is attempting to form a standard for the high-speed delivery of data into homes over phone lines. The new alliance, however, does not include Microsoft Corp. (Nasdaq:MSFT), one of the key founders of the UAWG. Microsoft is absent, backers said, because its involvement in working out the physical connections that will make these networks possible is not necessary. "Microsoft is aware of this effort and is in support of it," said Cyrus Namazi, product marketing manager at Advanced Micro Devices Inc. (NYSE:AMD), a chip maker that is part of the alliance. Microsoft is also an investor in Tut Systems Inc., which created the technology on which the first wave of Home Phoneline-compatible products will be based. To market by year's end The alliance aims to speed the delivery of home networking products to market. Namazi and Craig Stouffer, director of home networks at Tut, said packages of products that will allow the creation of networks -- based on the "plug-and-play" specifications of this alliance -- will be available by year's end. Tying together a minimalist network of two PCs and one printer will cost no more than $200, Namazi said. If the alliance does not meet its target date, the market -- simmering for the past two years -- will face more delay. "We will have to have the products out there, and then the market will be jump-started," Namazi said. A coup for Tut The alliance is a coup for Tut, which has faced a number of rivals in the creation of home networks based on phone line connections as well as competing types of connections, such as wireless and power line networks for home computer users. But Stouffer declined to state what kind of boost in revenue Tut could gain from an alliance that fundamentally is backing its type of million-bit-per-second networking over copper phone lines, which is compatible with popular Ethernet networking technology. There are no guarantees for Tut, however, said Linda LeBaron, an analyst at research firm Gartner Group Inc. Competitors that build products based on the alliance's spec still have the opportunity to strike lucrative partnerships with large computer suppliers, such as Compaq. "It depends on which partnerships have been formed and who's dancing with whom," LeBaron said. 'Critical mass' market? Both AMD and Tut cite Dataquest Inc. statistics as proof that the home networking market has reached "critical mass." Those numbers, however, indicate only a potential market: 15 million U.S. households today with more than one PC and 30 million in the year 2000. The actual number of households today with PC networks is next to nothing. Other members of the alliance include 3Com Corp. (Nasdaq:COMS), AT&T Corp. (NYSE:T), Hewlett-Packard Co. (NYSE:HWP), IBM Corp. (NYSE:IBM) and Lucent Technologies Inc. (NYSE:LU)