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Managed Home Network Services

New research from TDG suggests that tying home networking to value-added services could help home networks "cross the chasm" between early adopters and mainstream consumers. TDG's report on home networking and managed home network services, identifies numerous specific value-added services that could help service providers extend their revenue and profit reach "beyond the modem."

"Broadband service providers (BSPs) are in an ideal position to push home networking into broadband households," said Rachel Avery, analyst and author of the report. "By emphasizing the value of network-enabled services instead of selling hardware, BSPs can leverage their unique position in the broadband value chain to push networking solutions and services into consumer homes."

TDG's research continues to suggest that demand among US consumers for home networks is declining. In fact, less than 15 percent of non-networked broadband households are interested in purchasing a home network in the next 12 months. While home networking continues to enjoy strong demand (especially among wireless solutions), the data suggests that without significant push efforts - either by the outreach of broadband service providers or massive digital home marketing campaigns on the part of leaders such as Intel or Microsoft - demand will begin to soften.

"While broadband service has become a relatively simple proposition for most households, the same cannot be said for home networking," said Avery. "The perception of complexity is still very real, despite notable improvements in the ease of set-up and use. But mass-market consumers want to know that installing and using a home network will be a hassle-free experience, and that if something goes wrong, they have the support to address their problems. Their interest in many value-added home networking services reflects that concern."

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