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China Home Networking Market Development

As you may recall, I previously reported that China recently surpassed the U.S. market with a higher total number of consumer DSL broadband connections. An outstanding accomplishment, by any measure of market growth. Moreover, the installed base of Internet access is now driving other related consumer purchases.

Nearly one-fifth of urban household respondents in top-tier Chinese cities are equipped with a home network, according to a recent consumer survey by In-Stat. An increasing number of players in relevant industries have begun to enter this market through various methods.

�The China home networking market has passed the difficult initial stages and has begun to take off,� says Rebecca Tan, In-Stat analyst. �Although the situation is still a bit less optimistic in the second-tier cities, around one-fourth of total respondents to our survey may install a home network within one year.�

In-Stat's study found the following:

- Those most interested in home networks are young, with a relatively high monthly income.

- To more quickly realize market potential, there should be an independent services provider to provide home networking integration services, which is now missing in the digital home ecosystem in China.

- Consumers who access the Internet have indicated an increasing need for entertainment, which became the top purpose of having a home network in a prior survey.

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