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Welcome to CrossTalk, a Telco-Broadband publication designed to provide you with timely, valuable information in a clear and simple format. Crosstalk strives to provide a centralized guide to the latest market research and technology advancements that allow our industry to stay competitive, reduce customer churn, and increase profitability. We will also provide updates on the latest developments here at Actiontec. We hope you enjoy this issue, and continue to look for our updates in the future. We also look forward to any feedback you may have on how we can make this newsletter more valuable to you.
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Gigabit Users More Network Savvy

According to a new study, adopters of gigabit fiber optic services are online for three times the daily average while using more complex home networks that support five or more devices. The report, "Residential Gigabit Subscribers: Services, Applications and Attitudes," was provided by Telecom Thinktank and RVA LLC and offers a glimpse into the growing community of gigabit Internet users worldwide. Gigabit fiber optic services are a relatively new feature, having debuted in Hong Kong in 2010, but are spreading rapidly through smaller operators in densely populated areas. The survey was initiated to determine the motivation and use scenarios of consumers who employ ultra-high speed broadband access.

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While Gaps Remain, the Digital Divide is Narrowing

A new Pew Internet report was released recently, titled "Digital Differences." In it, Pew discovered that 20% of American adults do not use the Internet. This group corresponded strongly with particular subsets of society, such as age, education level, and household income, and resembled results from a Pew survey held in 2000 that found that minorities, adults living in low-income households, and seniors were less likely to be online. On the other hand, the gaps are closing, especially with respect to minorities, although differences in access persist (for example, those with high-speed broadband at home vs. those without). Of the segment that doesn't use the Internet, more than half claim that being online is irrelevant to them, and that the information they need is accessible to them through other means.

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PAY FOR Market Research

Just a reminder: the following section highlights only some of the reports currently available. To get a full listing, click here.
Smart Grid Enabled Device Market to Reach 25 Million by 2017

According to a new report by IMS Research, over 25 million 'smart grid-enabled' devices, which includes devices like smart thermostats, energy displays, and appliances with the ability to communicate with smart meters, will be shipped in the U.S. in the next five years. These devices allow utility companies to more closely observe and regulate the amount of electricity consumers use. As these applicances become more popular, the debate about variable tariffs such as dynamic pricing, or "demand-response," will intensify, while other programs like load-shedding will also bear greater scrutiny.

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Americans Heading Online For Video

For the first time, Americans in 2012 will pay to view more movies online than they will on Blu-ray discs and other physical video formats, according to recent research by IHS. The legal acquisition of movies online in the United States will reach 3.4 billion views or transactions during this year, compared to 2.4 billion for physical video. For comparison, in 2011, physical video claimed a majority share of the market with 2.6 billion views or transactions, compared to 1.4 billion for online. Additionally, IHS expects online video transactions and videos to continue to increase in the near future, while physical video sales will extend their ongoing decline.

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Video Surveillance as a Service on the Rise

IMS Research, now a part of IHS, estimates that the world market for cloud-based video surveillance, or video surveillance as a service (VSaaS), was worth over $500 million in 2011, an increase of 25% from 2010. Much of that increase was due to demand from consumers, small-to-medium businesses, and government users. VSaaS can include self-monitoring, integrated analytics, and off-site storage. While VSaaS is clearly starting to emerge, factors such as price could slow down its momentum. Current monthly camera subscriptions run between $5 and $30, depending on the level of service and the inclusion of hardware. While this sounds inexpensive, over time this will generate a considerable cost for the end user.

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The Diffusion Group Overviews the Broadband Home

According to a new report from TDG, "The CE and PC Ecosystem of the Broadband Household: 2012," 80% of U.S. broadband households now use a home network. This means they have access to a growing variety of net-based video and applications on a growing number of devices. Also, nearly 40% of home network routers are now located in the living room, more than twice the number found in home offices. These and other research findings are discussed in in the new report, the second edition of TDG's annual release focused on electronic ownership, placement, and connectivity within the U.S. broadband homes.

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Suggestion Box

Have an idea for an article, want to contribute an article, or just have a suggestion for improving this newsletter? Feel free to contact Lesley Kirchman at ljkirchman@actiontec.com. See you next time.
About Actiontec Electronics, Inc

Building off of a history of shipping 24 million Internet access devices, Actiontec Electronics, Inc., leads the market in developing innovative broadband connectivity and broadband-powered solutions that simplify and enrich the digital life. Actiontec offerings range from the market's broadest selection of IPTV-capable broadband home gateways for bringing IP-based video services into the home, to DSL modems, wireless networking devices, routers and digital entertainment devices. The company's carrier-class products are easy to install, manage, and use, and are sold through retail channels and broadband service providers. Founded in 1993, Actiontec is headquartered in Sunnyvale, CA, and maintains branch offices in Colorado Springs, CO; Shanghai, China; and Taipei, Taiwan. For more information, call 408-752-7700 or visit http://www.actiontec.com

Actiontec Electronics Inc. - 760 North Mary Avenue, Sunnyvale, CA 94085 -
Web: www.actiontec.com - Email: broadband-sales@actiontec.com

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