Rival camps eye broadband riches

Netgear chief Patrick Lo discusses broadband developments, 802.11n and 10GbE pricing.

Written by Dave Bailey

IT Week: As chief executive of network kit vendor Netgear, how do you see wireless LANs developing?

Patrick Lo: Our focus is on small and medium-sized firms. Where wireless is concerned you might only need one AP [access point] because of the coverage envelope. Larger enterprises are a different ball game and a proven interoperable standard is what they want… remember it took two years for them to leap from [802.11]b to g and it will take another two years for them to move from g to n. There are some enterprises using our switches, like the US Post Office, and some universities that cannot afford some of the other vendors’ Layer 3 products. We haven’t got any plans to target large organisations but we’re not going to turn away business.

ITW: How is the ratification of the 802.11n wireless LAN standard progressing?

Lo: The process is moving along as expected. The normal standards process takes some time as comments are solicited and discussed after each draft is circulated.

ITW: How do you view the future for WiMax “wireless broadband”?

Lo: We currently have a product in trials with the mobile operators that has the potential to be a good alternative to fixed-line broadband, especially in the developing world where they don’t have the cash to deliver [fixed-line] capabilities. Broadband service provision has traditionally been fixed line, but with WiMax the mobile operators can get some traction by providing services such as mobile-Wi-Fi convergence – ie you have a Wi-Fi phone and the mobile operators [enable] you to cut your BT line. WiMax promises 10Mbit/s and this would be enabled to support apps such as voice over IP.

ITW: How do you think competition in broadband will develop?

Lo: It will be interesting because there will be four competing forces. First, there will be traditional telcos with fixed-line broadband, telephone and triple play [voice, video and data]. Then there are the mobile operators who are doing it the other way round, providing internet and other services through a WiMax/Wi-Fi wireless broadband connection. The next players are the likes of Google and Skype, who are saying subscribe to us and ride on our service. And lastly there are governments or city municipalities who are enabling [shorter range] wireless services.

ITW: How will Netgear address demand for 10 Gigabit Ethernet [10GbE]?

Lo: We will be working with the hardware chip suppliers, and the early adopters will be academics and people who really need this bandwidth. We’ve shipped more gigabit ports than Cisco and we believe we can do the same with 10GbE. We expect to get to $40 [£21 per port] for the copper standard at 10GbE for the guys running Linux on commodity hardware next year.

ITW: What other developments do you anticipate in comms?

Lo: Innovations are already underway in the storage, digital entertainment, mobility, voice and security areas. For example, 100 million registered Skype VoIP customers can soon liberate their Skype calls from the computer by using their Netgear Skype Wi-Fi Phone. And with our ProSafe security solutions, small to medium-sized firms will be able to enjoy the security benefits of IP VPN at an affordable price.
‹ www.netgear.com

About Patrick Lo 
Patrick Lo has been chairman and chief executive of network vendor Netgear since 2002. 
He served as vice-president and general manager at Netgear from 1996 until 1999, when he became president. 
From 1983 to 1995 he was at HP in various management roles.

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