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Industry News

The Commercial Market

December 1, 2001
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The Commercial Market


Fiber Optics to be Bright Spot in Future of Network Cabling

With a compound annual growth rate (CAGR) of 23 percent through 2005, fiber-optic cabling is a technology with a bright future, according to a report, "Copper, Fiber & Wireless: How Will We Hook Up?," from Cahners In-Stat Group. The report projects that, even though copper cabling is expected to dominate over the next five years, fiber will reach almost 69 million ports shipped in 2005 for combined LAN (local area network) switch and NIC (Network Interface Card) markets.

"Real growth opportunities lie with fiber even though copper is much more prevalent to the desktop," says Lauri Vickers, senior analyst with In-Stat's Voice and Data Communications Group. "Fiber to the desktop is still an expensive proposition, however; its costs and benefits, relative to the proposed available copper upgrade options, make it the far wiser choice when the time comes for an organization to pull new cable. This, combined with fiber's superior security and quality attributes, will drive fiber further into the enterprise."

In-Stat also found that:

·  The transition to fiber will be a slow process, as organizations will not immediately begin to rip out their copper cabling infrastructures in favor of fiber. However, as organizations max out the capabilities of categories 5 or 5e cabling, the new cable of choice will be fiber. Fiber will account for approximately 13 percent of all the ports in the LAN in 2005, up from 11 percent in 2001.

·  All forms of cabling to the desktop will decline as wireless technologies improve. The elimination of desktop MAC (Move, Add and Change) costs is a powerful inducement to adopt wireless. Wireless will account for approximately 4 percent of all the ports in the LAN in 2005, up from 1 percent in 2001.

·  Most of fiber's double-digit growth over the next five years will be driven by the more economical multi-mode fiber that appeals more to large networks than to small ones. For more information, contact: Courtney McEuen (916) 984-1179.

Home Networking Market to Reach $9.2 B by 2006

The connected home market, consisting of home networking equipment and software, residential gateways and home control and automation products, will grow from $1.4 B in 2001 to $9.2 B in 2006 according to a report, "The Digital Domicile: The Exploding Market For Home Networking Technology and Services," from Cahners In-Stat Group. The report finds that the connected home market has been spurred over the past year by a surge in popularity of wireless networking technology and basic home routers to enable broadband sharing.

"We have finally seen the hockey stick," states Michael Wolf, a director with In-Stat. "After years of asking questions and learning about connectivity, the consumer has begun to see the value of networking a home, despite a tough economic environment. Home networking has proven to be one of the few bright spots in today's otherwise challenging technology market." Wireless networking has increased the popularity of home networking over the past 12 months. Other factors that will continue to drive the positive momentum are:

  • The recognition among consumers of the need for network security.
  • The release of Window XP, the first true "home-network friendly" operating system from Microsoft.
  • The emergence of the home server in coming years as a distributor of content to the different end points over the home network.
  • The gradual build in interest in home networks among broadband service providers as an important distribution platform for new services.

Wireless Connectivity Enables Mobile TV Viewing Throughout the Home

Intersil, the world's leading developer of silicon technology for Wireless Local Area Networks (WLANs), announced that Sharp Corp., a leader in LCD TV, has integrated Intersil's PRISM®WLAN chip sets in their new AN-SS700 audio/visual transmission system that allows wireless television viewing throughout the home as long as an electrical outlet is available.

"It is exciting to see a highly respected company such as Sharp extend wireless connectivity to consumer television products," said Allen Nogee, senior industry analyst for Cahners In-Stat. "Sharp new LCD system, enabled by Intersil's PRISM WLAN technology, is a significant step forward in driving consumer market adoption of Wi-Fi (802-11b) products."

The AN-SS700 is a highly efficient, completely digital, high speed wireless system that operates in the 2.4 GHz band. PRISM's wireless technology enables Sharp audio/ visual system to provide high quality, low noise reception in rooms blocked by walls or out of line-of-sight.

"Sharp's new audio/visual digital transmission system is further evidence of the growing acceptance of wireless reception for the home and promises to liberate consumers from a cumbersome wired world," said Larry Ciaccia, VP and general manager of Intersil's Wireless Networking Business. "Original equipment manufacturers are producing a wide range of stimulating and exciting PRISM-based products that extend beyond traditional PC-based applications in the emerging home market."

The AN-SS700's compact package includes a transmitter and receiver, each measuring approximately 5.83" x 3.11" x 1.54". Using PRISM WLAN technology, Sharp original MAC technology and a high performance MPEG2 encoder/decoder to handle compressed audio and video, the AN-SS700 transmitter is connected to a VCR, DVD player or satellite tuner by composite video signal. The video pictures received by the AN-SS700 are wirelessly transmitted as digital signals and viewed remotely on the LCD TV connected to the receiver unit.

Loral Cyberstar Launches Secure, Satellite-based, IP-distribution Platform

Loral Cyberstar announced the introduction of ClearStream OverNet , a secure, high speed, IP delivery network that allows large files, video and multimedia applications, software updates and database replications to bypass WAN congestion using Cyberstar's satellite multicast capabilities. Loral Cyberstar is a subsidiary of Loral Space and Communications.

ClearStream OverNet, the third product in the ClearStream suite of streaming media services, greatly simplifies the delivery of IP applications through the easy set-up of small diameter dishes, the unique broadcast nature of satellites and the addressing capabilities of multicasting. Terrestrial alternatives are often more costly and restrict the ability of enterprises to add new locations to their network. With ClearStream OverNet, enterprises can reliably transmit large files by sending just one stream of data from a central point directly into local area networks (LANs) at many different locations.

"Satellite IP multicasting is the most efficient way to distribute any kind of IP data to multiple locations," said Pat Brant, chief operating officer and president, enterprise services, Cyberstar. "ClearStream OverNet overcomes the inefficient one-to-one TCP/IP protocol that so many enterprises use for one-to-many distributions. By allowing a single, simultaneous transmission of data to all locations, ClearStream OverNet significantly enhances network performance and increases bandwidth efficiency."

In addition, ClearStream OverNet provides an easy migration path to a suite of IP-based streaming media applications from Cyberstar. When combined with other ClearStream products, such as ClearStream Live and ClearStream Webcast, OverNet offers a cost-effective way to deliver video to the desktop. In addition, ClearStream OverNet takes into account the need for security at every point in the network through a combination of encryption and IRD entitlement. For more information, visit Cyberstar's Web site at www.cyberstar.com.

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