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Home networking set to take off

December 8, 1999

multiple PCs and devices within homes will reap a

$4 billion market reward by the year 2002,

according to a new study by a West Coast

securities firm.

This latest prediction, issued in a recent report by

Los Angeles-based Wedbush Morgan Securities,

underscores the increased focus from several

corners of the industry on making it easy for

consumer computer users within a home to build a

network to share resources and gain access to the

Net.

The study follows a bevy of activity on the

standards front, including a new group for phone

line-based networks, another chartered for

connecting a variety of electronic devices, and still

another focused on delivering wireless

communications within the home.

Wedbush Morgan Securities estimates that home

networking will become a $1 billion market by the

year 2000 and jump to a $4 billion opportunity by

2002.

One reason for the expected home networking

boom is estimates that 61 percent of the expected

57 million homes with PCs will have more than one

by the year 2000. In addition, 49 percent of

households will be connected to the Net by the

year 2000, according to the estimates, a

compilation of Wedbush Morgan, Dataquest, and

Intel studies.

Wedbush Morgan said it believes technology for

in-home networks will be ready for use by the

fourth quarter of this year.

Among the nascent firms listed as potential

beneficiaries of the boom are: Tut Systems,

Epigram, ShareWave, and WebGear, according to

the study.

Others expected to reap the benefits are Microsoft,

Compaq Computer, and Lucent Technologies, the

study said.

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