“What most researchers fail to take into account the dominance of hybrid wireless/Ethernet solutions,” says Michael Greeson, CEO and Founder of The Diffusion Group. “Virtually every wireless solutionsold today has an embedded Ethernet switch or hub with multiple ports of LAN-side connectivity. Moreover, in most networked households the desktop PC is connected to the home networkinggateway/router via Ethernet, while other PCs in the home make use of wireless connectivity. To declare that wireless has somehow ‘eclipsed’ Ethernet as the dominant home networking technology iserroneous.”
According to TDG’s new research, more than 90% of home networks make use of at least one LAN-side Ethernet port, while 68% employ wireless technology to connect remote PCs and other devices to thenetwork. Phoneline technology continues to dwindle as a home network solution, declining from 11% in early 2004 to 7% in early 2005. Powerline networking has yet to establish a strong presence in thehome networking market in any significant way, present on only 3% of home networks and primarily in the form of Ethernet-to-powerline bridges. In the opinion of TDG, powerline remains a “sleeper”home networking technology, often dismissed by the popular press and WiFi advocates but capable of disrupting the home network landscape in the next five years.
“CE stalwarts such as Sharp and Sony are already involved in powerline networking, not to mention Comcast,” said Greeson. “More importantly, we expect a major announcement to be made in the next fewmonths that will squarely put HomePlug on the map of every home network player.”
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