According to research firm InStat MDR (news - alert), home networking entered the mainstream in 2003 and in early 2004, as droves of broadband users installed home networks to share Internet connections. InStat MDR estimates that the continued need for broadband sharing and an exploding interest in entertainment networking will drive the total value of equipment with a home networking connection of some type from $8.3 billion in 2004 to $17.1 billion by 2008. Likewise, the majority of enterprise IT (define - news - alert) budgets is going toward local and wide-area networking to accommodate highly distributed workforces that require access to centralized corporate information.

Most users are turning to wireless networking based on some flavor of 802.11 for their computer networking needs. According to Jupiter Research, the percentage of U.S households using 802.11 is expected to reach 8% in 2004, twice the percentage in 2003. The biggest advantage of 802.11 is its simplicity. One can connect computers anywhere in the home or office without the need for wires. The computers connect to the network using radio signals that provide coverage of 150 feet in every direction.

Yet 802.11 networking technology alone is not the perfect solution. While many 802.11 signals can travel farther than 150 feet, the radio waves tend to degrade when they attempt to travel through the walls of a home or office. Users have to move the 802.11 adapter around until they receive a better signal to the gateway, if possible at all. Often signal speeds can be as slow as 2 Mbps and are subject to intermittent signal dropouts. A recent Wall Street Journal article[1] highlighted users’ frustration over various Wi-Fi dead spots. It seems those who cut the computer wires expect to access the Internet, share printers, files and gaming sessions in their bedrooms, attics, basements and garages.

Power-line networking, based on HomePlug PowerLine Specification 1.0.1 (news - alert), is increasingly being touted as a perfect companion to Wi-Fi networks. HomePlug hardware easily extends the reach of 802.11 networks to the outer areas of the office or home. All users must do is plug power-line adapters into their nearest electrical outlets to form a network over their home electrical wiring. The network is entirely self-discovering and self-configuring with transmission rates of up to 14 Mbps that incorporate powerful 56-bit DES (define - news - alert) encryption that is configured in the hardware, not through additional software installations.

Older product versions of power-line networking technology were expensive, slow and non-standardized, resulting in the belief that Wi-Fi networks would trump the need for power-line networking forever. Today, power-line networking devices cost less than $100 and are offered by some 14 different manufacturers. The beauty of such products is their true plug-and-play nature and their ability to operate using any electrical outlet, regardless of how old the electrical wiring is without degrading the existing power supply.

Many analysts agree that the home network of the future will not encompass a single technology solution. The growth of broadband services is exploding as computer users are quickly growing accustomed to the integration of the Internet into every aspect of their lives. Homes with multiple personal computers, Internet devices and smart appliances require ubiquitous connection to the web. Using power-line networking technology as the home local area network backbone, roaming from one WLAN (define - news - alert) to another, from room to room, from the basement to the attic is a reality.

 A Jupiter Research study[2] concluded that no single standard or network type will dominate the industry, despite the hype surrounding 802.11 networking. “Rather, consumers will make their choice based on a variety of factors, including convenience, price and ease of installation.”

A recent white paper from Parks Associates and Global Inventures[3] indicates that “wireless and wired backbone hybrid networking solutions will be one situation where different connectivity solutions work in concert to deliver greater flexibility and value to the end user.”

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