To: Tom Gebing who wrote (27273 ) 1/27/1999 9:09:00 AM From: Moonray Respond to of 45548
Home networks grow as broadband access up - report FRAMINGHAM, Mass., Jan 26 (Reuters) - The demand for sharing peripherals and data, or home networking, will increase significantly as the penetration and usage of broadband Internet access expands, International Data Corp. said in a report issued Tuesday. About 34 percent of PC-owning homes have two or more active systems currently, and the number of multiple PC households is growing faster than the overall PC penetration rate, the research firm said in a statement. International Data expects almost 6 million network nodes to ship into homes during 1999. Most of these nodes will enter the home within new PC shipments, but aftermarket sales of nodes will benefit from the need to equip existing computers. However, consumer use of these nodes in a network will be delayed by the slow adoption of broadband Internet access, and it will take time before the installed base of networking nodes in multiple PC homes reaches critical mass. By the end of 1999, International Data expects only 1.9 million U.S. homes to actually have an installed home network. Over the next few years, however, the number of homes with installed networks will grow to almost 12 million, or 12 percent of all U.S. homes. The ability to connect personal computers in the home also represents a significant opportunity in networking technologies and in new PC usage models, the research firm said. Large players such as Intel Corp. <INTC.O>. 3Com Corp. <COMS.O>, and Compaq Computer Corp.<CPQ.N>, as well as smaller players such as Tut Systems Inc., which is slated to go public later this week, are quickly entering the home networking arena to stake out their spot. ((Reshma Kapadia,New York Newsdesk 212 859-1700)) REUTERS Rtr 22:39 01-26-99 o~~~ O