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Home Networking Solutions on the Rise

Spring is in the air, and digital home technologies are blossoming. Home networking penetration worldwide will grow nearly 50 percent from 2006 to 2008, according to the latest market study by Parks Associates.

Parks study finds that households with data networking solutions for broadband and file sharing -- totaling 114 million at the end of 2006 -- will reach close to 170 million by the end of 2008, prompted in large part by service provider-led deployments of residential gateway solutions, particularly in Europe.

Amid aggressive competition, European broadband providers will have deployed residential gateways to more than 16 million households by the end of 2008, up from 11 million at year-end 2007.

"The dual challenge and opportunity for European broadband and bundled services providers are to attract new customers through differentiation of services and retain their existing customers," said Kurt Scherf, vice president and principal analyst, Parks Associates.

"Home networking solutions, including residential gateways, allow service providers to more easily provision triple-play and value-added services and manage customer support costs."

Scherf said that European broadband and triple-play providers are leaders in deploying home networking solutions that provide basic broadband-sharing features and offer enhancements such as fixed-line to mobile phone telephone service convergence, multimedia streaming, and cost savings during telco/IPTV services installation.

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