Our report would not be complete without a brief look at available technologies.
The Types of Structured Wiring on Offer
There is considerable diversity in the types of structured wiring systems being offered in Western Europe. Most are reasonably sophisticated starform cabling system. Simpler apartment block premise networks similar to those prevalent in parts of Asia are evident in Sweden.
The main components of most cabled systems are a distribution box, patch cords, category data cable, outlets, adaptors and connectors. Voice, data and TV video signals are connected to the external networks via the distribution box and patched into the cabling system that radiates outwards in a star formation to one or two distribution points in each major room around the house. The networks will allow broadband access to the external environment at multiple points in the home. It is also possible to route data from one access point to another within the home via the distribution box. Data networks may or may not incorporate video signals from the TV network, but it is generally expected that a structured wiring network should have this capability. There is very little evidence of data networks capable of allowing the automation of the home environment. The higher level of structured wiring networks should be adaptable to some degree of home automation, but it is normally understood that it requires a separate data network (or »bus« system) running parallel to the power distribution network.
… wiring solutions based on high bandwidth cables will have important implications for connectors as well …
The type of structured wiring system installed has implications for the amount and quantity of cable used. Where telecom and TV systems are separately channelled, both twisted pair and coaxial cable necessarily form part of the system. These cables may be bundled together, sometimes with fibre optic cable to offer greater future proofing, within a single jacket or glued together. This is the solution usually chosen in the United States. In Europe, it is unusual for there to be the large wall cavities where bulky cables can easily be laid. Indeed, trunking along surface conduit is common. Not only is cable bulk an issue, the limited bend radius of coaxial cable can make the use of composite cables difficult in confined spaces. Partly because of the physical constraints, cables of small diameter are much more common in Europe than in the United States.
Although it is common to have both twisted pair and coaxial cable in the network, in high-end solutions it is possible for video to be carried on twisted pair cable, dispensing with the need for coaxial altogether.
UTP – FTP – STP …
The difficulty is that, without compression, TV signals require bandwidth far beyond the 100 MHz of Category 5 or 250 MHz of Category 6 cable. Where coaxial and twisted pair cables run together, it is usual to have the normal diversity of wall sockets. If structured wiring solutions based on high bandwidth cables become more common, this has important implications for connectors as well as cable. At present, the standard RG45 telephone connector is still the dominant medium for connecting data equipment to the wall socket. Designed with low speed communication in mind, the potential for cross talk at the point where the wires straighten without shielding means that the overall capacity of a network is reduced, significantly so for installations with cables above Category 5 or 5e rating.
In general, the higher the specification of the cable used, the higher the value of the market. There is, however, some offset in reduced cable length. Where any data medium can be sent down the same cable type, cable use can be dedicated based on user preference, obviating the need for multiple cable runs. The solution chosen may involve the use of wall plates with multiple connection points to different dedicated services or the consumer option of specifying the function of a socket at the distribution box. With well-planned high grade structured wiring, it is possible to achieve full data networking within most homes using 200-250 meters of cable. The length of cable may be more than double in a less sophisticated cabling system, but the value proposition as far as the cablemaker is concerned is less attractive. With Category 5 and 5e cable being offered at less than one-fifth of the price of high-end products, the market value of lower grade systems can be significantly less.
The cabling solution chosen varies greatly by country in Europe. The higher-grade STP (shielded twisted pair) cable types are commonly used in Germany and, to a lesser extent, in Austria and Scandinavia. FTP (foiled twisted pair cable) use is strongly based in France. In other markets, including the United Kingdom, the market is dominated by UTP (unshielded twisted pair) cable. With investment in the development of standard Category 5/5e UTP being fully written down and suppliers offering it as a commodity product, the work of convincing buyers to specify better quality but higher priced FTP or STP is an uphill struggle in most countries.
Alternative Technologies in Home Networking
While the penetration of residential structured wiring is growing, data networking in the home is growing much faster. A recent market report by In-Stat/MDR estimates that there were 4.5 million home networks in Western Europe at the end of 2003 (growing to over 15 million by the end of 2007). If this estimate is correct, then structured wiring has not done particularly well in capturing its potential market. We estimate that there were 3-400,000 structured wiring systems in place in Western Europe at the end of 2003.
The difference between the two figures is accounted for almost exclusively by wireless networking. With cheap wireless routers now being available and a functionality of network systems that is normally within the capabilities of wireless equipment, this is the most frequently chosen option. As the installation of structured wiring in an existing home is not only disruptive but also very expensive (often over € 2,000, or double the cost of new build installation), the wireless argument is pretty convincing.
There are other challenges to standard data cabling options apart from wireless, although they have not yet proved to be particularly troublesome. Power Line Communications (PLC) over the existing electricity infrastructure is one option. Still fraught with technical problems, PLC could offer a reasonable means of extending a network at low speeds (particularly for audio signals) and, with technology improvement, could find a role in home automation, where data and powered functions are often required simultaneously. Another contender is Plastic Optical Fiber (POF). While POF is a data cable product, it is not a market in which most data cable makers have a presence. The high band-width and low connector cost make POF a potential contender at the high end of the home network market, although this is a market space that is rapidly being occupied by copper.
