Are mainstream consumers ready for home networking? The answer is yes, or no, depending on your point of view. While many service providers are including wireless gateways as part of their broadband offerings, only a few are marketing home networking as a managed, value-added service.

Some providers say the demand just isn’t there yet, and are focusing instead on winning customers with multi-play, bundled services. Yet according to The Diffusion Group, the number of devices connected to home networks is expected to grow from 280 million (3.8 connected devices per network) in 2006 to 974 million (6.1 connected devices per home) in 2010.

Those numbers pose a serious challenge to service providers. As the number of connected devices grows, the common denominator will be their ability to share content over a broadband connection. As a result, consumers will naturally look to their ISPs to make all of those devices work together, seamlessly and easily. It’s a significant opportunity that should not be underestimated, and one that savvy operators will not overlook.

Whether or not they define it as a home network, more and more consumers are living a connected lifestyle. And while they may not be interested in home networking for its own sake, they are increasingly interested in what they can do with the digital devices and media that are becoming an integral part of their lives. In other words, they want an easy way to access their photos, music, e-mail, video, games and text messages from whatever device they happen to be using, in whatever room they happen to be in at the time. It’s about convenience.

Unfortunately, despite the growing influence of standards organizations such as the Universal Plug and Play (UPnP) Forum and the Digital Living Network Alliance (DLNA), sharing services and content across all these disparate devices is anything but convenient today. Electronics retailer Best Buy has recognized this and has made a profitable business of its Geek Squad service. Circuit City recently decided the market was too big to ignore, and jumped into the fray with its own competitive offerings under its new Firedog brand. Will service providers cede the market to these retailers and other independent firms, or will they recognize that customer demand for shared—not just bundled—services is strong and growing?

Perhaps one reason providers are hesitating is that the costs involved in installing and supporting a home network can quickly erode profit margins. To help providers deliver and manage these services profitably, Motive recently introduced Home Device Manager (HDM). A joint development with Alcatel, HDM enables providers of Broadband 2.0 services, such as IPTV, VoIP and advanced home networking, to remotely activate, support and upgrade these services, and their associated devices. For providers that are serious about delivering value-added services, HDM’s remote management capabilities may be the edge they need to compete effectively with earlier, more entrenched competitors in the market. When services become simple to install and use, the need for on-site installation and support fades. It’s a game-changing strategy that many of the world’s top broadband providers are already embracing.

Whether you are already in the game, or still considering your options, you’ll find thought-provoking ideas, real-world examples and insightful commentary in this issue to help you fine-tune your own home networking strategy. Of course, this is just a representative sampling of a complex and varied market, and if you have questions or comments, we’d love to hear from you. You can write to us at editor@broadband2.com, or visit us in person and see HDM in action at Broadband World Forum Europe October 9-12 in Paris, France. We hope to see you there.

Alfred Mockett
Chairman and CEO
Motive, Inc.