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    Introduction to Home Networking

    T e c h n i c a l P a p e r

    Can High-Tech Migrate Successfully into the

    Consumer Market?

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    1

    Introduction to Home Networking

    Can High-Tech Migrate Successfully into the Consumer Market?

    Contents

    Internet Access, Resource Sharing and Multiplayer Gaming Boost Home Network Interest 2The Technology Challenge: Making the Complex Simple 3

    Ethernet Networks: Tried and True 3

    The Need for Speed (box) 4

    How Home Ethernet Networks Work 4

    Ethernet Networking in the Home 4

    Phoneline Networks: Up and Calling 5

    How Home Phoneline Networks Work 5

    Phoneline Networking in the Home 6

    Powerline Networks: Not Quite Up to Speed 6

    How Powerline Networks Work 6

    Powerline Networking Limitations 7

    Wireless Networks: Mobile and Versatile 7

    How Home Wireless Networks Work 8

    Wireless Networking in the Home 8

    Choosing the Best Network Technology for the Home 9

    Evaluating Home Network Solutions 9

    Conclusion 10

    Glossary 10

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    Introduction to Home Networking

    Can High-Tech Migrate Successfully into

    the Consumer Market?

    Computer networking is being propelled from its

    traditional corporate base into a brave new

    worldthe home. This white paper discusses

    networking from a technical perspective. Thepaper explains why home networking is a viable

    and growing market segment, and details the

    benefits and market drivers behind the push. Italso introduces four basic home networking tech-

    nologies, compares their advantages and limita-

    tions, and outlines the reasons behind theirrecommended application in the home. Finally,

    the paper presents factors that will determine the

    successful introduction of home networking prod-ucts in the consumer marketplace.

    Internet Access, Resource Sharing and

    Multiplayer Gaming Boost Home Network

    Interest

    The price of home computers keeps falling,while the advantages for consumers to beingconnectedonline investing and shopping,keeping in touch with long-distance friendsand relatives, enjoying multiplayer games and

    tapping the vast resources of the Internetkeep multiplying. No wonder an increasingnumber of households own two or more PCs.Forecasters predict that more than 30 millionNorth American households will own two ormore computers by the end of 2002 (CahnersIn-Stat Group, 1/99).

    However, households are experiencing thesame limitations that confronted businessesalmost 20 years ago, when personal computersmigrated from the basements of home hobby-ists to the desktops of office workers around

    the world. Those limitations include theinability to share computing and peripheralresources or to share information easilybetween computer users. The solution tothose problems then and now is networking:the ability to interconnect devices, so thatusers can communicate with one another andshare resources. Consider the four most com-pelling home network market drivers:

    Simultaneous high-speed Internet accessusing one Internet service provider (ISP)

    account.As the Internet becomes an essen-tial tool in business, education, medicineand government, as well as our personallives, the demand for high-speed, conve-nient, easily accessible Internet access ismushrooming.

    Cable, Integrated Services Digital Net-work (ISDN), and digital subscriber line(DSL) modems provide the fastest Internetconnections and allow family members totalk on the phone and use the Internetsimultaneously.

    Peripheral sharing. Families want to get themost out of their computer equipmentinvestments by sharing the same printers,

    modems, or other peripherals from any PCin the home.

    Sharing files and applications. Families alsowant to maximize the value of their softwareinvestments by sharing applications, and theywant the convenience of sharing files easily,and eliminating sneakernetrunning frommachine to machine with floppies or CDs.

    Entertainment. The new wave of multi-player computer games, with their eye-pop-ping graphics and exciting audio tracks, are

    beginning to grab consumer interest. Mar-ket analyst International Data Corporation(IDC) believes that PC games and enter-tainment software represent the swiftestlong-term growth segment of the overallU.S. electronic gaming marketplace, andhas predicted a combined unit annualgrowth rate of 24 percent between 1997and 2002. The two biggest growth factors,in IDCs opinion, are the continuing pricedrop in home PCs (U.S. $500 PCs areavailable today) and the opportunity for

    multiplayer gaming. PC gaming historicallyhas trailed console gaming, especially in theimportant adolescent category, preciselybecause of the inability to play head-to-headagainst friends and relatives (IDC, 6/98).

    As Figure 1 shows, these popular emergingapplications require substantial bandwidth.For a discussion of bandwidth, see the sidebarThe Need for Speed on page 4.

    2

    Acronyms andAbbreviations

    DSLsymmetric digital

    ubscriber line

    psits per second

    CATVable television

    CSMA/CD

    arrier Sense Multiple Accesswith Collision Detection

    CTPentralized token passing

    DSLigital subscriber line

    DSMAatagram sensing multiple

    ccess

    DSPigital signal processing

    DSSSDirect Sequence Spread

    pectrum

    DVDigital versatile disk

    DMrequency division

    multiplexing

    SKrequency shift keying

    HomePNAHome Phoneline

    Networking Alliance

    EEEnstitute of Electrical and

    lectronics Engineers

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    These major market drivers are spurringthe demand for home networks. Industry ana-lysts are predicting a healthy growth curve forhome networking. Cahners In-Stat Group(1/99) predicts that home networking willgrow from $233 million by the end of 1999 toover $1.4 billion (U.S.) in annual sales by2003. This anticipated 57 percent annualgrowth rate over the next five years is enticing

    everyone from established network vendors tobrash home gaming upstarts to enter theemerging market.

    However, success in the consumer marketrequires that home networks be inexpensive,easy to install and easy to use. Essentially, thatmeans the technology must be transparent tothe user. To meet this requirement, networkingtechnology is evolving to make home connec-tivity available to the average home computeruser.

    The Technology Challenge: Making the

    Complex Simple

    While consumer demand has swelled, recentadvances have overcome the technological andcomplexity barriers that once prevented net-

    working from migrating into nontechnicalenvironments. Component prices havedropped, available network speeds have accel-erated, and signal attenuation and noise prob-

    lems have been addressed using low-cost,high-performance signal processing. Con-sumers now have an impressive array of net-working options to choose from, dependingon their application needs and how muchmoney and effort they want to invest.

    Basically, the choices are divided intowired networks and wireless networks. Wirednetwork technologies use some form of physi-

    cal cabling to connect computing devices.There are three technology choices for wirednetworks today: Ethernet, phoneline and pow-erline. Wireless networks, on the other hand,use electromagnetic airwavesinfrared orradioto transmit information from onepoint to another.

    Ethernet Networks: Tried and True

    Ethernet, the most proven network technology,is the Institute of Electrical and ElectronicsEngineers (IEEE) 802.3 standard technologyon which the majority of business networksare built. The Ethernet protocol defines thetransmission of data over copper wire at a rateof 10 Mbps. Fast Ethernet, an extension of theIEEE 802.3 standard (802.3u), defines thetransmission of data over copper wire or fiberoptic cable at a rate of 100 Mbps. In additionto their well-deserved reputation for reliabilityand security, Ethernet-based networks deliver

    3

    Figure 1. Home Networking Bandwidth Requirements

    DVD, DirectTV (MPEG2)

    Home gaming with digital quality video and full CD-quality audio

    Computer or CD-ROMbased video (MPEG1)

    Complex text and graphics

    Digital or Internet audio/radio

    Voice and fax

    64 Kbps

    200 Kbps

    1.0 Mbps

    1.5 Mbps

    3.0 Mbps

    6.5 Mbps

    Acronyms andAbbreviations

    IRinfrared

    ISPInternet service provider

    ISDNIntegrated Services Digital

    Network

    Kbps

    kilobits per second

    MACMedia Access Control

    MPEGMotion Picture Experts

    Group

    Mbpsmegabits per second

    NICnetwork interface card

    POTSplain old telephone service

    PSTNpublic switched telephone

    network

    RFradio frequency

    UTPunshielded twisted pair

    WAN

    wide area network

    WLANwireless LAN

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    far and away the fastest performance. At mea-surable rates between 10 and 100 Mbps, theyare ideal for bandwidth-intensive multiplayergaming and home office environments.

    How Home Ethernet Networks Work

    Ethernet is a shared network technology. Sim-ple or small Ethernet networks typically employa central controlling hub to which all networkdevices are attached (known as a star configu-ration). Network traffic travels through the

    hub to the targeted PC or peripheral.Ethernets Carrier Sense Multiple Access

    with Collision Detection (CSMA/CD) MediaAccess Control (MAC) protocol defines therules of access for the shared network. Theprotocol name itself neatly explains how thetraffic control process actually works. Devicesattached to the network first check, or sense,the carrier (wire) before transmitting. If the

    network is in use, the device waits beforetransmitting. Multiple access refers to the factthat many devices share the same networkmedium. If, by chance, two devices attempt totransmit at exactly the same time and a colli-sion occurs, collision detection mechanismsdirect both devices to wait a random intervaland then retransmit. Ethernet is the mostpopular networking technology in use today,because the cabling and installation is compar-atively inexpensive; it is also simple, secure

    and requires very little overhead.

    Ethernet Networking in the Home

    Ethernet technology is nearly 30 years old, butthere were still a few technology challenges toovercome before it was acceptable for homeuse. Ethernet networks are perceived as compli-cated, expensive to install and administration-heavy. To overcome that perception, Ethernet

    4

    Bandwidth is a general term that can be used

    in different ways. One use refers to the data

    rateor speedof a network technology such

    as Ethernet, powerline, phoneline, or wireless.In this case, bandwidth is a function of the

    amount of data transmitted or received per

    unit of time, measured in bits per second (bps).

    It is used to define network performance.

    The higher the bandwidth, the faster the data

    rate or network speed. The faster the network

    speed, the faster text, audio, and video data

    can travel from point A to point B. And, afterall, time is money. Figure 2 shows how long a

    30 MB file would take to travel from one PC to

    another over 1 Mbps, 10 Mbps, and 100 Mbps

    networks.

    The Need for Speed

    Time(m

    inutes)

    Data rate (Mbps)

    0.1

    1 10 100

    1.0

    2.0

    2.5

    Figure 2. File Transfer Time Comparison

    Times shown are an average of three

    tests for each data rate run on a two-

    machine configuration. Times can

    vary depending on machine type, pro-

    cessor speed, other peripherals on

    the machine and network congestion.

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    home network vendors have designed net-working kitsconsisting of low-cost networkadapters, an inexpensive nonmanaged huband simple configuration softwareto makeit easier to set up and use.

    Ethernet networks do require special Cat-egory 3 or 5 (preferred) unshielded twistedpair (UTP) copper wire cabling between con-nected devices. This type of cabling can befound in computer stores and home improve-ment stores, and is preinstalled in many newhomes. Because of Ethernets special cablingrequirements, Ethernet networks are easiest toimplement in new or remodeled homes wherenetwork cabling can be installed as part ofconstruction. However, technically savvy homecomputer users can run the cable, particularly

    in situations where all the PCs are located inthe same room, such as in a home-based office.

    Figure 3 shows how an Ethernet networkcould be set up in the home. Internal or exter-nal network adapters are installed in each PC.Peripheral devices without direct Ethernetconnection optionssuch as printersareshared through a networked PC. Each PC isthen connected to the Ethernet hub over Cat-egory 3 or Category 5 cabling. The hub man-ages the communication between the devices

    on the network. A single 56 Kbps analog,ISDN, cable or DSL modem provides ashared Internet connection.

    Phoneline Networks: Up and Calling

    Alternative phoneline and powerline networktechnologies were developed to provide a sim-pler way to get home users connected. Sinceevery home already has phone and power cir-cuits, there is no need to run new cabling toinstall one of these networks.

    How Home Phoneline Networks Work

    Phoneline networking takes advantage ofunused transmission capacity to transmit dataover existing telephone wires. As shown inFigure 4 on page 6, phoneline home networks

    transmit information at frequencies well abovethat of plain old telephone service (POTS) ordigital services like ISDN and DSL, so thenetwork does not interfere with the normaluse of the phone line for voice, fax or Internetservices running over the same telephone cir-cuit. Nor do these other phoneline servicesaffect network data transmission quality.

    The technology used to divide up sharedbandwidth is called frequency division multi-plexing (FDM). This well-established technique

    5

    Kitchen Living room Family room

    Home office

    Hub

    Analog, ISDN,cable or DSL

    link

    Internet

    Figure 3. Home Ethernet Network

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    divides up the total bandwidth into differentfrequency bands, called channels, using fre-quency-selective filters. Think of total avail-able frequency spectrum as a freeway, witheach type of trafficpower, analog voice anddigital information (including data, audio andvideo)assigned separate lanes.

    The initial Home Phoneline NetworkingAlliance specification (HomePNA 1.0) adoptedthe IEEE 802.3 media access method; it isessentially 1 Mbps Ethernet over phone lines.The recently published HomePNA 2.0 speci-

    fication, expected to be finalized in late 1999,takes advantage of digital signal processing(DSP) technology embedded in silicon tooffer consistently higher performance, betteradapt to poor line conditions by continuouslyboosting signal strength and improve filteringof noise (interference) from nearby appliances.HomePNA 2.0based products can supporttransfer speeds of up to 10 Mbps, ten timesfaster than HomePNA 1.0based products.

    Phoneline Networking in the HomeFigure 5 shows how a phoneline network couldbe set up in the home. Internal or external net-work adapters are installed in each PC. Print-ers or other peripherals are then sharedthrough a connected PC. Each PC is pluggedinto a nearby phone jack. A single 56 Kbpsanalog, ISDN, cable or DSL modem providesan Internet connection that every computeron the phone circuit can use simultaneously.

    Phoneline networking works best inhomes where the computers are located in dif-ferent rooms near phone jacks on the samecircuitthat is, using the same telephonenumber. (Recent surveys indicate that 80 per-cent of home PCs are located near phonejacks.) Once more, installation is easy becausethe network wiring is already in place. Thenetwork is also very secure because each homehas a unique phone circuit from the telephonecompanys central office.

    Powerline Networks: Not Quite Up to SpeedLike phoneline networking, powerline net-working takes advantage of the unused band-width of the power cable to transmit data overexisting home power cabling. A powerline net-work operates similarly to a phoneline net-work. Internal or external network adaptersare installed in each PC; printers or otherperipherals can be shared through a connectedPC. Each PC is then plugged into a nearbypower outlet. A modem provides the shared

    Internet connection. Powerline networkingworks best in homes where the computers arelocated in different rooms near power outlets,but on the same circuit.

    How Powerline Networks Work

    Powerline technologies use a variety of mediaaccess methods, from CSMA/CD and tokenpassing to datagram sensing multiple access(DSMA) and centralized token passing

    6

    Power

    Frequency

    POTS20 Hz 3.4 kHz

    DSL25 kHz 1.1 MHz

    Home network5.5 MHz 9.5 MHz

    Figure 4. Frequency Division Multiplexing

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    (CTP). DSMA acts much like Ethernet tomediate multiple access contentions on the

    wire, by sensing and randomly backing off iftraffic is detected. In some powerline homenetwork implementations, once a networkdevice has gained access, it switches to adynamic, centrally distributed, token passingscheme so that it has control of the networkuntil it finishes transmission. This dualmethod reduces the incidence of transmissioncollisions while preserving limited bandwidth.

    Powerline technology also employs amodulation technology called frequency shiftkeying (FSK) to send digital signals over thepowerline. FSK uses two or more separate fre-quencies in narrow band; one is designated1, the other 0, for binary transmission.

    Powerline Networking LimitationsPowerline networking boasts many of thesame benefits as phoneline networking. How-ever, some powerline networks are not as fastas other networking choices. Powerlines tendto be very noisy, and consequently slower(compared to phonelines). Bandwidth speedusing todays available technology tops atmuch less than 1 Mbps: rates range from 50Kbps to 350 Kbps.

    A powerline network could also havesecurity issues due to the way power is distrib-uted. A single power line from the utility com-pany goes to multiple homes; a power meterat each house measures actual usage. Like anold party telephone line, anyone can poten-tially listen in on the shared bandwidth. Apowerline network relies on encryption, ordata scrambling, to prevent others fromaccessing the data running over the home net-work.

    Because of these limitations, powerlinehome networking is not expected to be asviable an option as competing home net-working technologies. Powerline technologywill more likely be deployed in home automa-tion and home security applications.

    Wireless Networks: Mobile and VersatileAs with the others, the technology for wirelessnetworks has also been around for some time;home networking just takes it to another levelof functionality. Over the last several years,wireless networks have achieved success in anumber of vertical markets, including health-care, retail and manufacturing.

    Wireless LANs (WLANs) can now offerthe same advantages to consumers: first and

    7

    Kitchen Living room Family room

    Bedroom

    Home office Analog, ISDN,cable or DSL

    link

    Internet

    Figure 5. Home Phoneline Network

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    foremost is mobility. Consumers have the flex-ibility to move inside or outside their homesand still remain connected to the Internet orto other computing devices on the network.Installation is easy because there are no wires.Wireless network components can be set upanywhere in the home. Wireless networkingmakes it easy to move computers and otherdevices without the need to reconfigure thenetwork.

    How Home Wireless Networks Work

    Wireless networks use high-frequency electro-magnetic waves, either infrared (IR) or radiofrequency (RF), to transmit information fromone point to another without relying on anyphysical connections. RF is expected to be of

    more practical use in home networking thanIR because it is not limited by line-of-sighttransmission; radio waves travel through wallsand windows. Data and voice traffic is super-imposed, or modulated, onto the radio waves,or carriers, and extracted at the receiving end.Multiple radio carriers can exist in the samespace at the same time without interferingwith each other by transmitting at differentfrequencies. To extract the data, a receivertunes in or selects one radio frequency while

    filtering out the others.

    The home wireless RF network featuresan independent, peer-to-peer network thatconnects PCs with wireless adapters operatingwithin one of three frequency ranges: 902 to928 MHz, 2.400 to 2.483 GHz and 5.725 to5.875 GHz. Any time two or more wirelessadapters are within range of each other, theycan set up an on-demand network thatrequires no administration.

    There are a large number of differenttechnologies that can be used in WLAN homenetwork applications. As just one example,3Com Corporation employs an IEEE802.11HRstandard Direct Sequence SpreadSpectrum (DSSS) technology for its homewireless network implementation. DSSS gen-erates a redundant bit pattern, called a chip or

    chipping code, for each transmitted bit. Errorrecovery mechanisms embedded in theadapter silicon can recover corrupted datawithout the need for retransmission. Trans-mission rates are surprisingly highfrom 1 to11 Mbps.

    Wireless Networking in the Home

    Figure 6 shows how a wireless network couldbe set up in the home. Internal or externaladapters are installed on each PC. Printers or

    8

    Kitchen OutdoorsFamily roomLiving room

    BedroomHome office

    Wireless

    handheld

    Accesspoin

    t

    device

    Wireless

    handheld

    DSL orcable link

    Internet

    Figure 6. Wireless Home Network

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    other peripherals can be shared through a con-nected PC. The devices then communicateusing a set of reserved high-frequencyradiowaves. An access point device connects toa DSL or cable modem and enables high-rate(broadband) Internet access for the entire net-

    work.Because RF-based wireless home net-

    working technology is not restricted by line-of-sight, network components do not need tobe located in the same room to communicate.In a typical home, the maximum distancebetween devices is about 250 feet. Familymembers can wander from room to room orrelax on the patio while surfing the Internetfrom their laptops.

    Choosing the Best Network Technology for

    the Home

    Table 1 compares four home networking tech-nologies and identifies important factors toconsider when selecting a home networkingsolution.

    Evaluating Home Network Solutions

    As mentioned earlier, a critical component forsuccess in the consumer market is that the

    technology be transparent to the user. Thehome network must be simple to install, setup and use. Consumer complaints about cur-rent home network offerings point to theimportance of masking product complexityand developing solutions that are easy to use.

    Users should look for home network vendorsthat have streamlined the installation processand user interface to make the networkingexperience easy and understandable for thenon-technical consumer.

    More and more products are addressingthe home networking market. But it remainsto be seen how many companies really under-stand both the technology and consumerneeds. To be successful in the consumer mar-ket, a home network solution must also be: Reliable and easy to expand as the home

    network inevitably grows. Compatible with other network devices,

    which means a standards-based solution. Built by reputable, experienced companies

    that know the complexities of networking,yet shield the consumer from that complexity.

    Secure and private; consumers are under-standably concerned about the ability of

    9

    Table 1. Home Networking Technology At-a-Glance Comparison

    Speed (1 Mbps = 1000Kbps)

    Relative cost*

    Advantages

    Requirements

    Best use

    Phoneline

    100 Kbps10 Mbps

    $50$130

    Convenient, simple (nonew wires), secure

    Need computers andperipherals near phonejacks on the samephoneline

    Ideal for shared Internetaccess, file sharing andperipheral sharing; goodfor home gaming

    Powerline

    50 Kbps350 Kbps

    $70$150

    Convenient, simple (nonew wires)

    Need computers andperipherals near poweroutlets on the same powercircuit

    Good for low-bandwidthapplications such as homesecurity and control

    Ethernet

    10 Mbps100 Mbps

    $75$200

    Fastest, most secure andreliable

    Requires Ethernet(Category 3 or 5) cabling;best in new home instal-lations or remodels

    Ideal for home gaming,home offices and sharedInternet access

    Wireless

    700 Kbps11 Mbps

    $150$300

    Convenient, mobile,simple (no wires), secure

    Network components mustbe within a 250-foot range

    Ideal for laptops, desktopsand handheld connectedorganizers inside andoutside home or smalloffice where mobility isrequired; great for sharedInternet access; good for

    home gaming

    *For comparison purposes, the prices include all the necessary software and hardware required to network two PCs. Dollar amounts refer to U.S. currency.

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    hackers to tap into sensitive financial or per-sonal communications.

    Backed by easily accessible, sound technicalsupport. No matter how simple productsare intended to be, some consumers willneed assistance. The company that offersfree or low-cost technical support will comeout ahead through word-of-mouth recom-mendations.

    Conclusion

    Sharing high-speed Internet access. Sharingperipherals, files and applications. Playingexciting multi-user, multimedia games. Thebenefits of home networking are clear andconsumers are more than ready to investan

    estimated $1.4 billion by 2003in solutionsthat will allow them to experience a trulyconnected lifestyle.

    Consumers now have an encouragingvariety of networking options to choose from:Ethernet, phoneline, powerline or wirelesstechnologies. Each technology, with its advan-tages and limitations, has its optimum homeapplication.

    Vendors that are successful in this emerg-ing market will be those that have experiencein the complexity of computer networkingand that are able to provide a reliable, scalablesolution that is easy for nontechnical homeconsumers to install and use.

    10

    Glossary

    Access point device A wireless LAN devicethat connects to a DSL or cable modem andenables high-rate (broadband) Internet accessthroughout the home network.

    Asymmetric digital subscriber line (ADSL)

    A popular implementation of DSL. Theasymmetric in ADSL means that it transmitsdata at faster speeds downstream (from theInternet to the computer) than upstream(from the computer to the Internet). ADSLcan support speeds of up to 8 Mbps down-stream and up to 1 Mbps upstream. It is idealfor Internet surfing, where users typicallydownload more information than they send.

    Bandwidth A general term that can be usedin different ways. One use refers to the datarateor speedof a network technology and

    is used to define network performance. In thiscase, bandwidth is directly proportional to theamount of data transmitted or received perunit of time, measured in bits per second (bps).

    Cable modem A type of modem that con-nects a computer to the cable (CATV) net-work, which in turn connects to the Internet.Once connected, cable modem users have a

    continuous connection to the Internet. Cablemodems feature asymmetric transfer rates:around 36 Mbps downstream and from 200Kbps to 2 Mbps upstream.

    Digital subscriber line (DSL) A next-genera-tion digital phone service that allows for thetransmission of voice, video and data overexisting copper telephone wires at very highspeeds. There are several implementations ofDSL, which differ by the upstream and down-stream speeds they support.

    DSL modem A type of modem that con-nects a computer to a DSL network, which inturn connects to the Internet. Once con-nected, DSL modem users have a continuousconnection to the Internet.

    Ethernet An international networking stan-dard, IEEE 802.3, that defines the transmis-sion of data over copper wire at a rate of 10Mbps.

    Fast Ethernet An extension of the EthernetIEEE standard, IEEE 802.3u, that defines thetransmission of data over copper wire or fiberoptic cable at a rate of 100 Mbps.

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    Frequency The portion of the electromag-netic spectrum, or channel, in which a deviceoperates.

    Frequency division multiplexing (FDM) Atechnology that separates different types oftraffic traveling over the same wire by dividingup the bandwidth into separate channels orsignals.

    G.lite A version of ADSL technology thatdoes not require a POTS splitter to beinstalled in the customers home. A POTSsplitter separates voice from data transmissionfor simultaneous telephone and data accessuse. G.lite supports downstream data rates ofup to 1.5 Mbps and upstream data rates of up

    to 512 Kbps.

    Home Phoneline Networking Alliance

    (HomePNA) A professional association ofhigh-technology companies working to ensurethe adoption of a single, unified phonelinenetworking standard, and to bring to market avariety of interoperable home networkingsolutions. 3Com is a founding member of theHomePNA.

    Hub (Ethernet) A networking device thatenables attached devices to receive all theinformation transmitted over the network,and to share network bandwidth.

    IEEE 802.11 HR The international IEEEstandard for high-rate wireless networking at11 Mbps.

    Integrated Services Digital Network (ISDN)An all-digital, circuit-switched telephone net-work.

    Internet service provider (ISP) A commer-cial organization that provides Internet accessto individuals and organizations.

    Kilobits per second (Kbps) A measure of thespeed at which data can travel. The rate of

    speed is measured in thousands of bits per sec-ond (approximate).

    Local area network (LAN) A computer net-work located in a single physical location,such as an office building or a home. See alsoWide area network (WAN).

    Megabits per second (Mbps) A measure ofthe speed at which data can travel. The rate ofspeed is measured in millions of bits per sec-ond (approximate).

    Motion Pictures Experts Group1 (MPEG1)An international standard for video and audiotransmission that covers format type, data rateand compression technique.

    Motion Pictures Experts Group2 (MPEG2)

    An international standard for full-motionvideo that covers format type, data rate andcompression technique.

    Network A collection of devices, such asPCs, printers, minicomputers, servers and soon, that are connected together in order toshare and exchange information and resources.

    Network interface card (NIC) An expansionboard that plugs into a PC or peripheral andmanages the flow of information over the net-work. Also known as a network adapter.

    Plain old telephone service (POTS) Theanalog telephone service that runs over copperwires and is based on the original Bell tele-phone system.

    Wide area network (WAN) A public or pri-vate computer network serving a wide geo-

    graphic area. The public switched telephonenetwork (PSTN) is the best-known exampleof a public WAN. Typically, users do not ownthe network, but pay a fee to use it.

    11

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    To learn more about 3Com products and services, visit our Web site at www.3com.com. 3Com Corporation is publicly traded on Nasdaq under the symbol COMS.

    The information contained in this document represents the current view of 3Com Corporation on the issues discussed as of the date of publication. Because 3Com must respond to changing market condi-tions, this paper should not be interpreted to be a commitment on the part of 3Com, and 3Com cannot guarantee the accuracy of any information presented after the date of publication. This document is forinformational purposes only; 3Com makes no warranties, express or implied, in this document.

    1999 3Com Corporation. All rights reserved. 3Com and the 3Com logo are registered trademarks and More connected. is a trademark of 3Com Corporation. Other brand or product names may be trade-marks or registered trademarks of their respective owners.

    Printed in U.S.A. on recycled paper 503061-001 9/99

    3Com Corporation5400 Bayfront PlazaP.O. Box 58145Santa Clara, CA95052-8145Phone: 1 800 NET 3Comor 1 408 326 5000

    Fax: 1 408 326 5001World Wide Web:

    www.3com.com

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    MontrealPhone: 514 683 3266Fax: 514 683 5122

    OttawaPhone: 613 566 7055Fax: 613 233 9527

    TorontoPhone: 416 498 3266Fax: 416 498 1262

    VancouverPhone: 604 434 3266Fax: 604 434 3264

    3Com Latin America

    Argentina (serving Argentina,Paraguay, and Uruguay )

    Phone: 54 11 4510 3200Fax: 54 11 4314 3329

    BrazilPhone: 55 11 5641 5001Fax: 55 11 5641 3444

    Chile (serving Bolivia, Chile, andPeru)Phone: 562 240 6200Fax: 562 240 6231

    ColombiaPhone: 57 1 629 4110Fax: 57 1 629 4503

    Costa RicaPhone: 506 280 8480Fax: 506 280 5859

    MexicoPhone: 525 201 0000Fax: 525 201 0001

    PeruPhone: 51 1 221 5399Fax: 51 1 221 5499

    VenezuelaPhone: 582 267 5550Fax: 582 267 3373

    Asia Pacific RimMelbourne, AustraliaPhone: 61 3 9934 8888Fax: 61 3 9934 8880

    Sydney, AustraliaPhone: 61 2 9937 5000Fax: 61 2 9956 6247

    Beijing, ChinaPhone: 8610 6588 0568Fax: 8610 6588 0602

    Shanghai, ChinaPhone: 86 21 6350 1581Fax: 86 21 6350 1531

    Hong KongPhone: 852 2501 1111

    Fax: 852 2537 1149IndiaPhone: 91 11 629 3177Fax: 91 11 623 6509

    IndonesiaPhone: 62 21 572 2088Fax: 62 21 572 2089

    Osaka, JapanPhone: 81 6 6379 1767Fax: 81 6 6379 0871

    Tokyo, JapanPhone: 0120 31 3266(toll free from Japan)

    Phone: 81 3 5977 3266Fax: 81 3 5977 3370

    Korea

    Phone: 82 2 3455 6300Fax: 82 2 319 4710

    MalaysiaPhone: 60 3 715 1333Fax: 60 3 715 2333

    New ZealandPhone: 64 9 366 9138Fax: 64 9 366 9139

    Philippines

    Phone: 632 849 3979Fax: 632 849 3970

    SingaporePhone: 65 538 9368Fax: 65 538 9369

    TaiwanPhone: 886 2 2 377 5850Fax: 886 2 2 377 5860

    ThailandPhone: 662 231 8151 5Fax: 662 231 8158

    3Com Austria

    Phone: 43 1 580 17 0Fax: 43 1 580 17 20

    3Com Benelux B.V.BelgiumPhone: 32 2 711 94 00Fax: 32 2 711 94 11

    NetherlandsPhone: 31 346 58 62 11Fax: 31 346 58 62 22

    3Com Eastern Europe/CIS

    BulgariaPhone: 359 2 962 5222Fax: 359 2 962 4322

    Czech RepublicPhone: 420 2 21845 800Fax: 420 2 21845 811

    Hungary

    Phone: 36 1 250 83 41Fax: 36 1 250 83 47

    PolandPhone: 48 22 6451351Fax: 48 22 6451352

    RussiaPhone: 7 095 258 09 40Fax: 7 095 258 09 41

    Slovak RepublicPhone: 421 7 317 850Fax: 421 7 317 849

    3Com France

    Phone: 33 1 69 86 68 00Fax: 33 1 69 07 11 54

    3Com GmbHUnterfoehring, GermanyPhone: 49 89 992200Fax: 49 89 9577 220

    3Com IberiaPortugalPhone: 351 1 3404505Fax: 351 1 3404575

    SpainPhone: 34 91 509 69 00Fax: 34 91 307 66 63

    3Com Italia S.p.A.

    Milan, ItalyPhone: 39 02 253011Fax: 39 02 27304244

    Rome, ItalyPhone: 39 06 5279941Fax: 39 06 52799423

    3Com Middle EastPhone: 971 4 319533Fax: 971 4 316766

    3Com Nordic AB

    DenmarkPhone: 45 48 10 50 00Fax: 45 48 10 50 50

    FinlandPhone: 358 9 435 420 67Fax: 358 9 455 51 66

    NorwayPhone: 47 22 58 47 00Fax: 47 22 58 47 01

    SwedenPhone: 46 8 587 05 600

    Fax: 46 8 587 05 601

    3Com Southern Africa

    Phone: 27 11 700 8600Fax: 27 11 706 0441

    3Com Switzerland

    Phone: 41 844 833 933Fax: 41 844 833 934

    3Com UK Ltd.

    EdinburghPhone: 44 131 240 2900Fax: 44 131 240 2903

    IrelandPhone: 353 1 823 5000Fax: 353 1 823 5001

    ManchesterPhone: 44 161 874 1700Fax: 44 161 874 1737

    WinnershPhone: 44 1189 27 8200Fax: 44 1189 695555

    About 3Com Corporation

    With more than 300 million customers worldwide, 3Com Corporation connects more

    people in more ways to information than any other networking company. 3Com deliv-

    ers innovative information access products and network system solutions to large,

    medium, and small enterprises; carriers and network service providers; PC OEMs; and

    consumers. 3Com. More connected.