Over Half of US Broadband Users Have Home Networks, Finds ABI Research

Business Wire, June 2, 2008

NEW YORK -- Today's broadband consumer is increasingly becoming a networked consumer, and more than half of broadband users in the United States today have some form of home network, according to a recent survey conducted by ABI Research. This growth - up from one third of broadband subscribers in 2006 - comes as service providers increasingly push more advanced gateways with embedded Wi-Fi, and consumers look to extend their broadband connections beyond the original single connection in the home office.

"The home network is no longer an early adopter technology, as increasing numbers of consumers look to laptops and PCs as well as newer devices such as gaming consoles and even Wi-Fi enabled mobile handsets," says research director Mike Wolf. "Our research shows that more than one quarter of home network owners say they have a game console on their home network, while another 8% say they have connected their mobile phone."

This growth in core home networking, however, is a sign of a market that is increasingly mature. This maturing of the core home networking business has resulted in home network vendors looking for new areas of growth beyond their gateway and home router product lines. Results from new areas of focus such as media adapters and network attached storage are mixed thus far, as consumers have yet to adopt these new product categories en masse.

"Fifteen percent of home network owners today are streaming music over the network and another one in ten is streaming video," notes Wolf. "These are early indicators that there will be consumer interest in these next-generation applications around the network. The key over time will be to create easy-to-use products that integrate seamlessly with the living room, an area of the home that carries with it different expectations regarding usability and end-user experiences. Ultimately, we expect more integration with existing consumer electronics products as well as a greater role for the service provider in managing networked media applications."

"Home Network End-User Snapshot" (http://www.abiresearch.com/products/research_brief/Home_Networking_ Research_Brief/117) summarizes and discusses the results of the home networking portion of a recent online survey conducted by ABI Research into US consumers' patterns of adopting and consuming television services.

It forms part of the firm's Home Networking Research Service (http://www.abiresearch.com/products/service/Home_Networking_Research _Service), which also contains other Research Briefs, Research Reports, Market Data, an Online Database, ABI Insights, and analyst inquiry support.

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ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call 1.516.624.2500.