While the home-networking market has focused primarily on technology providers as the driving force behind establishing integrated residential IT systems, service providers and device makers hold the keys to expanding this emerging market. That is the conclusion drawn in a new Yankee Group report, which notes that criteria used by service providers and electronic device manufacturers in evaluating the connectivity protocols for home networking systems -- including wireless, Ethernet and cable -- are critical to acceptance of the technology.

"Service providers, such as ISPs, telcos and cable operators, are being more aggressive in promoting home networking," Yankee Group analyst Dominic Ainscough told Wireless NewsFactor. "They are coordinating this with their broadband offerings to enhance the value of those offerings and give consumers another reason to purchase broadband service." Home networking, which promises to integrate such devices as PCs, TVs and set-top boxes, has yet to take off. But, a collaboration between service providers and hardware companies could deliver new entertainment, security and telephony applications to an accepting audience, Ainscough said.