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Home Networking Lags Five Years Behind Broadband, Finds IDC

  • 13 June, 2006 16:21

<p>NORTH SYDNEY, 13th June 2006 – Home networking adoption is trailing approximately five years behind residential broadband household adoption rates according to IDC's latest Digital Home research, "Australia Home Networking 2006-2010 Forecast and Analysis: Armchair Surfers Carving the Multimedia Wave."</p>
<p>Home network penetration of Australian households is expected to increase from six percent in 2005 to 33 percent in 2010, while residential broadband penetration reached 31 percent at year end 2005, as indicated by IDC's 2H05 Fixed Line Services Tracker.</p>
<p>IDC believes home networking will remain data centric in the near term. This is due to broadband sharing being the major driver to home networking adoption, with Broadband Service Providers (BSPs) boosting shipments of wireless routers to their subscriber base. The application that will encourage the second wave of home networking however, will be multimedia-oriented – photo and music sharing, video sharing, gaming etc.</p>
<p>"As consumers continue to store more digital content on their PCs, they will turn towards the PC or the Internet for digital entertainment. Along with better interoperability between PC and Consumer Electronics (CE) devices, this trend will fuel the need for multimedia networks such as streaming from PC to CE devices, to the summit," said Sophie Lo, IDC Analyst for Consumer Digital Markets.</p>
<p>"Additionally, service providers will eventually move into the entertainment networking arena, with IP-based systems that will allow users to share and move content between multiple televisions around the home such as Set Top Box (STB) to STB," added Ms. Lo.</p>
<p>IDC's Australia Digital Home Consumer Usage Survey 2006 found the main obstacle barring multimedia networking is the difficulties faced by consumers when setting up their home networks. Home networkers are most likely to experience difficulties in adding a CE device to the network, adding one or more computers or devices to the network and setting up wireless security.</p>
<p>"As home networks in Australia become increasingly complex with the integrated supply of data, voice and video services into the home, the expectations of having a fail-safe home network will also increase correspondingly. This presents good opportunities for BSPs, retail outlets or equipment manufacturers to offer a value-added maintenance / break-fix service. This could also open a window of opportunity for home network integrators like GeekSquad in America or NerdsOnSite in Australia to step in for a quick-fix service," added Shing Quah, Market Analyst for Telecommunications, co-author of this study.</p>
<p>IDC also urges vendors to think beyond entertainment. Consumers do not spend their dollars exclusively on entertainment; they also spend money on security and healthcare. There is potential in the home automation and home healthcare markets, particularly with aging baby boomers looking to utilise technology as a means of bettering their lifestyles. Those who want to play in the entire home environment will need to lay out that roadmap now.</p>
<p>Editors Notes</p>
<p>IDC Definitions:
# PC network. The most prevalent network today, this class of network is almost solely limited to that which is created between two or more PCs in order to share Internet access, files, and peripherals, and perhaps engage in multiplayer gaming. A PC network also includes the scenario of a home with a notebook computer accessing the Internet wirelessly through a wireless router.
# Multimedia network. A multimedia network contains at least one or more PCs and one or more CE devices.
# Entertainment network. This final case of home networks is unique in that it requires two or more of the same devices to connect for communication without sharing communication with other devices in the home. This type of network will operate independently of any other networks that are in the home. For example, two set-top boxes from the same manufacturer and/or cable operator could stream video from one to the other.</p>
<p>IDCs Consumer Breakfast Briefing</p>
<p>Register today for IDC's Consumer Convergence: Blurring Lines Between At Home and on the Go Breakfast Briefing Presented by, Sophie Lo, Research Analyst, Consumer Digital Markets and Jerson Yau, Associate Analyst, Wireless and Mobility</p>
<p>Date &amp; Venue:
Sydney: Wednesday, 14th June, The Westin Hotel, 1 Martin Place, Sydney
Melbourne: Thursday, 15th June, The Stamford Plaza Hotel, 111 Little Collins Street, Melbourne
Price: $120 Incl GST</p>
<p>For Further information go to:
To register please go to:</p>
<p>For press enquiries please contact:
Sophie Lo
Market Analyst, Consumer Digital Markets
Phone: 61 2 9925 2206
<p>Shing Quah
Market Analyst, Telecommunications
Phone: 61 2 9925 2220
<p>Click here to view the press release online:</p>
<p>Click here to subscribe to IDC press releases and newsletters online:</p>

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