Growth in home networking has been steady since its inception in the early nineties. About 20 to 30 percent of new homes are now being built with structured wiring. It's not a stretch to say that within two years, half of all new homes built will have the structured wiring for home networking.

People today are growing up with certain expectations. College graduates who used broadband in school and at work expect the same convenience at home. More people are working from home. Popular features that enable home office, multi-room entertainment and home theatre, and multiple-person access to the Internet, are quickly changing from luxuries to necessary conveniences.

While many consumers, including Hometoys readers, are interested in home networking, many interested consumers may never adopt the technology at all due to misconceptions about what is currently available on the market.

Some of the most common concerns and misconceptions are as follows:

• Professionally installed systems are too expensive for me.
• Professionally installed systems are only complicated, large systems that are beyond the average homeowner's needs.
• By the same token, entry level solutions are too simple and don't meet the average homeowner's needs.
• Structured wiring solutions are only pre-installed, so I can't have one in my current house.
• Retrofit solutions on the market are too costly and too much trouble to install.
• My only real retrofit solution is a DIY (Do-It-Yourself) solution, requiring a large personal investment of time and education.
• If I do purchase an entry-level hub it can't be easily upgraded, making future changes or expansion very expensive.
• There are no professional installers of home networking or structured wiring in my area to retrofit my home
• It's too complex and costly because of repairs needed after the installer needs to break through my walls to install the wiring.

Many of these beliefs are based on the state of the structured wiring industry several years ago, when the focus was more on built-in custom solutions for high end homes. Today, consumers have more and better options as the result of an industry response to middle market needs and a growing choice of builders, installers and integrators who can provide a range of solutions for their customers. One major addition to the mid-range solutions that have been available for some time is the growing availability, convenience and cost-effectiveness of retrofitting existing houses with structured wiring solutions.

What has changed to make retrofit solutions a real solution for homeowners seeking to install structured wiring?

Improved technology -- Fully modular products help resolve some of the lingering questions of retrofit with easy installation, competitive pricing and flexibility.

Lower price point - New solutions are less costly to purchasers than in the past.

Easier access - More home networking installers and specialists have added retrofit solutions to their product line as an easy entry into home networking installation that can help build relationships with customers.

Better Customer Support - Home networking installers are working with customers to help dispel their misconceptions and providing a greater array of support services.

New channels - Some retailers are forming partnerships with manufacturers or individual installers to sell these solutions. The home networking industry in general is committed to creating workable business models that can help the expansion of this trend.

This article will outline the positive changes in retrofit that have happened to date and significant trends that will make retrofit technology a better and more easily obtained solution for consumers interested in home networking.

Modular Technology

While vendors have offered both low and high end solutions for years, entry level solutions often can't be used to build more powerful systems, making expansion from a low-end system expensive. If a consumer can't afford or doesn't need all the features of a high-end solution but can't depend on a low-end system to meet his or her family's growing needs, they may give up on purchasing a home networking system altogether.

Today, new modular technology has been created based on the philosophy that that the ease and relatively low cost of adding new features and functions should be like snapping new memory modules into a PC. A modular, growable solution allows home owners to start small and expand the system to include, for example, modules for a security system or whole house audio/visual capability. The clever design of modular solutions makes expansion both simple and low cost, making home networking more attractive to the entry-level homeowners who want it and cost conscious homeowners involved in a major remodeling project.

Greyfox Systems, for example, has overcome the industry's difficulty with past retrofit technology problems by introducing the compact Trio - a surface-mounted, expandable bracket enclosure that accommodates three separate modules, such as for phone distribution, computer networking and video distribution. When more features and functions are needed, homeowners need only clip another Trio bracket onto the preceding Trio. This expansion is achieved with Lego-like simplicity and modularity.

A fully modular design makes the system easy to install and convenient for homeowners to make basic changes to their networks. Modular retrofit solutions also cut down on some intrusive installation procedures. For example, installers don't need to cut a big hole into drywall or mount a bulky can as they would with larger systems. And modular systems also remove the need for the messy punch-down normally required for phone lines.

The Obstacles That Do Exist

What about the inconveniences that still remain? The biggest obstacle to putting in a retrofit system has always been, and will probably continue to be, the need to fish wire behind walls. New build installation has always circumvented this problem since home networking is put in as the house is built like a utility, but retrofit still requires some work.

While breaking down your walls can certainly be intimidating, home networking is not the only technology addition to a home that requires it. Satellite system, security system and even central air conditioning installations are all disruptive in this way, but consumers have long accepted this fact in order to get the services they want. The many features, functions and benefits of home networking are potentially even bigger incentives to undergo temporary inconvenience. In addition, some installers are beginning to respond to this problem by forming partnerships with carpenters and other specialists who will restore walls to their original state, all included in the cost of installation.

The Effectiveness of Alternative Solutions

The desire not to disrupt the day-to-day of your home life by breaking down walls for installation is a large factor in consumers' ongoing interest in wireless retrofit solutions. Wireless is indeed easier to install and it can be a good medium for moving data. However, the infrastructure needed for the systems most homeowners want, such as satellite and cable, would require a wireless solution that is complicated and expensive, thereby eliminating the very reasons people seek a wireless solution. There is as of yet no wireless video solution on the market that compares to the quality of standard video. Meanwhile, video quality in general is improving with the advent of HDTV and other appliances, which are set up to process a higher quality of video than they have in the past. A wireless video transmission cannot meet the audio and video standards that these appliances require and won't in the foreseeable future.

Do-It-Yourself or DIY solutions are another issue. For end-users who don't have experience with DIY solutions, the amount of time and effort may not be worth the end result. Experienced DIY-ers may not be aware of the necessity of the kind of solid infrastructure and strategy that is best provided by a professional installer. A DIY system can potentially limit your flexibility and functionality. With the connectorized CAT-5 wiring that professional installers can provide, consumers can re-assign communications lines to different rooms at will -- as easily as if they were plugging in a phone or fax to a standard wall jack. This allows for all kinds of changes to your home's layout, from moving a couch to changing a nursery into a home office, without additional installation. It is to the consumers benefit to have cable run to multiple locations. If your installer can run bundled cable and optimize your functionality, so much the better.

Now that you want it, can you get it?

Modular retrofit solutions are also appealing to the builders, integrators and installers who would provide them to consumers, increasing availability and customer support for end-users. Modular systems allow installers and integrators to offer systems at a relatively low entry-level price point and offer the potential of recurring revenue, through expansion and upgrades to the system. System installation also helps installers and integrators establish a long-term relationship with the homeowner that can include post installation services, upgrades and other related home systems installation such as home security, home theater and central vacuum systems. As a result, more and more builders and installers are offering retrofit solutions. In addition, non-traditional installers, such as electricians and security companies, are expanding their businesses to include home networking, making these systems more easily available than in the past.

Summary

Home networking manufacturers are responding to the need for retrofit solutions that are cost-effective, easily installed and end-user friendly. As the technology improves to meet the consumer demand, it will be up to manufacturers and installers to help educate homeowners about their options and provide solutions that can grow as a homeowner's needs change over time. Homeowner education will help clear up misconceptions about what is available in the current marketplace, increasing demand and, in turn, creating more ways of getting the technology to consumers, and supporting those customers.

Michael Jennison is President and CEO of Greyfox Systems, which he founded in 1994. He was CFO of Jennison Corporation, Greyfox's predecessor company, between 1990 and 1994. He led the company through its early development stages and developed the company's successful growth strategy. Mr. Jennison is also Greyfox's technical coordinator, forging partnerships with other companies. He holds a B.S. in Finance from Penn State University.

Established in 1994, Greyfox Systems is a highly respected pioneer in the home networking market and whose technology is the second-most installed in the industry today. Greyfox Systems produces and sells both home networking hubs and the underlying electrical and electronic components. Known for elegant and intelligent design, Greyfox Systems' technology is behind some of the largest names in the home networking industry. The products are now also directly marketed through a growing national network of integrators under the Greyfox Systems label. Pass & Seymour, Greyfox Systems' parent company, is the North American arm of Legrand, a $2.6 billion manufacturer of low-voltage electrical products. Legrand acquired Greyfox in 2001.