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Networking: Investment Boom Underway

Companies are also working in strategic collaborations with others -- like the HomePlug Alliance (www.homeplug.org) -- to drive the adoption of technologies that may change the way networking is done, at least for homes and home offices, in the future.

Leading players like Intel, Sony, Radio Shack, Intellon and Arkados are part of the consortium, which is developing technologies that enable homes to network all their appliances -- including Ethernet networks, wireless networks, TV and appliances -- over conventional power lines.

"There is considerable renewed interest in power line products to support the growing consumer demand for increased network reach with reliable throughput," said Joyce Putscher, an analyst at In-Stat, an IT market research firm, Waltham, Mass.

The HomePlug Alliance is developing specifications for power line communications technologies, and focusing on developing a new market for those technologies, a spokeswoman said.

"For many applications in the digital home, a power line device offers a useful alternative to a networking solutions, especially with the faster speeds of this next generation of 85 Mbps technology," said Kartik Gada, the product line manager at Netgear, Inc., a Santa Clara, Calif.-based developer of power line networking technologies.