Data Cabling Systems for Homes a Boom Market Opportunity

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BOONTON, NJ. June 1, 2000:

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The special cabling systems used by industry to create voice and data networks within buildings are starting to show up in private homes in significant numbers, says a new report by Insight Research. These new cabling systems are being installed in new home construction as increasing numbers of residential home buyers demand multiple access points within the home to a single high-speed Internet connection.

According to Insight's report Customer Premises Fiber: The Business and Residential Inside Wiring Revolution, the market for these new home wiring systems is expected to increase by more than 60 percent over the next four years, with residential wiring system spending going from $302 million this year to more than $2.1 billion by 2004. While the cabling systems used by most business premises remain data-centric, the home cabling market today is still dominated by video entertainment, though the number of cable modems and DSL lines is increasing every month, making the home market a new frontier for structured cable manufacturers. Cabling manufacturers are responding to residential user demand with a new type of cable system that uses Category 5 cables for voice and data as well as RG-6 coaxial cable for TV in the same cable bundle.

"The single family home is akin to a new frontier for cable manufacturers, so there is plenty of opportunity for new players to find a niche," says Robert Rosenberg, president of Insight." In the commercial market, distributors have long played a key role in getting these structured cabling systems to the user, but in the new residential market, distributors usually don't supply all the products. Manufacturers are jumping into the vacuum and building their own direct sales channels. LAN value-added resellers and some forward-looking electrical contractors are also making headway. And security firms installing alarm systems in new homes are also making moves in this direction."

Additional data in Customer Premises Fiber: The Business and Residential Inside Wiring Revolution include five-year forecasts for copper and fiber optic cable used in businesses and residences for voice and data applications. Insight also estimates the shipments of various types of apparatus used to support fiber cable, including patch panels, workstation outlets, and connectors. See www.insight-corp.com/cpf99.asp for a free excerpt and table of contents.

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Donna Savino

at Insight Research

973-541-9600