Set-Top Boxes May Anchor Home Networks

Research firm Gartner says in the future, PCs aren't likely to be the hubs of most home networks in the future.

In a research report looking at the state of the IPTV industry, research firm Gartner forecasts that, in the future, PCs aren’t likely to serve as the central hubs of in-home networks. Instead, set-top boxes—such as those offered by televisions providers—are more likely to be at the core of entertainment functions on home networks.

“The PC is an important part of the entertainment-based network, and most networks will contain one,” said Gartner research analyst Paul O’Donovan, in a statement. “But the PC is not a crucial part of the future home network. Consumer electronics companies are aiming to build connectivity to components with or without the PC being present.”

The Gartner report posits that set-top boxes are well-positioned to serve as the core components of home networks, particularly in markets with high penetration of cable television and reliable broadband Internet connectivity. However, since not all homes will be pre-wired for networking—and, even then, may not be wired to the same standards—Gartner forecasts consumer electronics hardware will increasingly incorporate its own networking hardware over the next five to six years, regardless of whether consumers use it or not, with units combining both wired networking and 802.11n wireless networking being the obvious choice for IPTV solutions. “For ease of installation and consistency of service in the home, a network combining wired and wireless technologies will be the most successful topology,” O’Donovan said.

Gartner predicts with digital cable and IPTV services taking the lead in home networking in the North American market, while overseas home networking will reach the mass market via several vectors, including game consoles, DVD players and recorders, cable and IPTV services, and even (gasp) PC-based media centers. For IPTV operators to make a dent in the market, they will likely have to bundle with services to attract customers: since most IPTV operators will be telecoms, expect service bundles combining Internet access, voice, and mobile services.