| January 12, 2004 |
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In talking with REALTORS® about home automation at the recent NAR Convention in San Francisco, most told me that it is something "for the future," "it's priced out of reach" or "the technology just isn't there." The reality, however, is that consumers today can have total control of their home's interior and exterior, whether they are inside their property or not. From lighting, heating, ventilation and air conditioning (HVAC), security systems, and home entertainment, to keeping an eye on kids as they arrive home from school, technologies are in place and at a reasonable cost. Best of all for consumers and the installers of these devices, home automation systems are controlled by user-friendly appliances such as push-button interfaces, personal computers and telephones. "True plug-and-play solutions do exist in attractive, full-color, self-configuring touch-screen solutions that do not break the bank or require tireless hours of programming," said Richard F. Scholl, Jr., President of Worthington Distribution, a Paupack, Pennsylvania distributor of home automation, system integration and structured wiring products. "A complete integrated home automation system is at a price point today that is designed for the masses." If investment capital being pumped into the home automation industry and the increasing number of new products and services on the market is any indication, then 2004 is the year for REALTORS® to learn about home automation and its impact on quality of life inside the home. For example, computer chip giant Intel Corp. announced at the 2004 International Consumer Electronics Show (CES) in Las Vegas that it is investing $200 million in venture capital for startups developing hardware and software that help build digital home networks. Intel President and COO Paul Otellini told an enthusiastic crowd in Las Vegas that his firm intends to "unify the home." This proclamation comes on the heels of the company's recent $300 million global ad campaign to promote the rollout of a new wireless Internet chip, the Centrino. "The same dynamics that drove the PC revolution are moving to consumer electronics," said Otellini at an Industry Insiders speech at the International CES. "As the world of consumer electronics and content shift from analog to digital, there is a great opportunity to advance the rate of improvement in performance, cost and integration of features in CE devices. Think of this as Moore's Law applied to yet another industry. "Our goal is to eliminate boundaries between electronic devices inside and outside the home and we're working with the PC and consumer electronics industries to make this a reality. For Intel in 2004, this effort will receive as much focus as the work we did last year to advance wireless technologies for mobile computing," Otellini added. Helping fuel the growth of home automation as a quality of life issue has been the proliferation of household broadband Internet access. According to Michael Greeson, Vice President and Principal Analyst with Parks Associates, and featured speaker at the International CES, 15 million U.S. households had cable broadband access in the third quarter of 2003 compared with 2.9 million in the same period three years earlier. With DSL, Greeson pointed out, six million U.S. households had this service in their homes in third quarter 2003, compared to only 800,000 in the third quarter of 2000. Greeson predicted that there will be 51.5 million broadband Internet subscribers, or about 48% of all U.S. households, by the year 2007. "Broadband Internet connections, the home PC and wireless technology combined with the ability to share premium content wirelessly means in the future individuals will be able to watch first run movies at home the same day they premiere in the theater," Otellini said. "In our view of the digital home, it's not so much about a place, but an ability to share content across handheld, mobile and large-screen devices so that consumers can enjoy digital content the way they want it, when and where they want it." Bill Gates, chairman and chief software architect for Microsoft Corp., utilized the 2004 International CES to launch his concept of seamless computing. The theme of seamless computing, explained Gates, is the ability to bring devices together into one connected world. Gates explained that software and broadband technology are the building blocks to making seamless computing a reality. "Wireless home networking is the logical next step for any current residential broadband subscriber," said Jeff Porter, vice president of marketing at Netopia, a market leader in broadband equipment, software and services. "Netopia's Cayman 3387W Wireless Gateway allows any broadband customer to instantly turn their single Internet connection into a wireless home network that securely shares their connection with every PC and laptop in the home." Evolved from its roots in automation and security, home automation is a category that is garnering worldwide attention. Scholl, a Director of the TechHome Division of the Consumer Electronics Association (CEA), producers of the International CES (which focuses on 20 product areas from more than 2,300 exhibitors and will surpass 100,000 attendees from all over the world in 2004), discussed a new product that will help take some of the mystery away from home networks for REALTORS® and consumers alike: the TechHome™ Rating System. The goal of CEA's TechHome Rating System, Scholl said, is to foster an understanding of the benefits of installed technology in the home. It features a ratings-assigned checklist that, when completed, will assess the technological value of a home. Ratings are given in five categories with a score between one and 10; with 10 being the most technologically sophisticated. The categories are: Home Entertainment, Communications, PC Networking & Internet Sharing, Home Security and Home Comfort, Convenience and Energy Management. "The home network is evolving new functions and features based on what consumers want," said Kara R. Dickerson, CEA Director of Emerging Trends. "The consumer electronics industry has long understood that product evolution is driven by consumers' sense of value, usefulness and appeal." Realtors should take notice. Penetration of home automation solutions into consumer homes is primed for tremendous growth. Home automation is a pending paradigm shift in home buying consumer relationships that will likely take hold in the coming 24 to 36 months. With implementation costs dropping, a more accommodating learning curve, and major players investing significant dollars in products and services, home automation as a fixture in residential real estate sales is just around the corner. Peter L. Mosca is president and founder of Howell-NJ-based BAK Communications, Inc.. Peter is a frequent speaker to organizations of all sizes on a wide range of communications topics, each aimed at helping individuals and organizations identify ways to better the flow of information to key internal and external publics. The Consumer Electronics Association is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 1,300 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $90 billion in annual sales. |
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