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<DIV><FONT face=Arial>do you have a home network?</FONT></DIV>
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<DIV><FONT face=Arial>ct</FONT></DIV>
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      <DIV><SPAN class=inside-head><STRONG><FONT size=5>Cisco Valet makes home 
      Wi-Fi easier to set up</FONT></STRONG></SPAN></DIV>
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      <SCRIPT type=text/javascript>document.write(niceDate('3/31/2010 12:17 AM'));</SCRIPT>
       12m ago</SPAN>&nbsp;|&nbsp;<SPAN id=uslCountControl><SPAN 
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                  alt="Simon Fleming-Wood holds Cisco's Valet, which uses a USB dongle to &#13;&#10;automatically set up your Wi-Fi router and network." 
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                <TD class=photoCredit width=165 align=right>By Jefferson 
                  Graham, USA TODAY</TD></TR>
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                <TD class=photoCredit colSpan=2>Simon Fleming-Wood holds 
                  Cisco's Valet, which uses a USB dongle to automatically set up 
                  your Wi-Fi router and 
        network.</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
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<DIV id=byLineTag class=byLine>By <A class=linkedBylineName 
href="http://www.usatoday.com/community/tags/reporter.aspx?id=273">Jefferson 
Graham</A>, USA TODAY</DIV>
<DIV class=inside-copy>The folks behind the best-selling Flip video camera want 
to do for home networking what they did for video: make it drop-dead easy.</DIV>
<P class=inside-copy>Today, networking giant Cisco releases its first consumer 
router, the $99 and $149 Valet, that promises to take the hassle out of setup 
and automatically puts a home wireless network together.</P>
<P class=inside-copy>Cisco bought Pure Digital, the parent company of the Flip 
line of video cameras, a year ago for $590 million.</P>
<P class=inside-copy>The Pure Digital team, led by former CEO Jonathan Kaplan, 
is intact and now oversees both video and home networking products at Cisco.</P>
<P class=inside-copy>"We're in the same exact place we were with video," says 
Kaplan, now senior vice president and general manager of Cisco consumer 
products. "Eighty percent of routers are sold to experts, and the 20% of the 
mainstream who buy them end up returning them because they're just too hard to 
use and set up."</P>
<DIV id=tagCrumbs></DIV>
<P class=inside-copy>To set up the Valet, a USB dongle is inserted in the USB 
slot on the computer. Passwords and Web keys are automatically set via Cisco's 
software.</P>
<P class=inside-copy>To add additional computers to the network, insert the USB 
into each machine.</P>
<P class=inside-copy><B>Room to grow </B></P>
<P class=inside-copy>There are two Valet models: a $99 version for small to 
midsize homes and a $149 one for larger homes that require a bigger signal.</P>
<P class=inside-copy>"With the Flip, we took everything away that we didn't need 
on the camera and made it really simple, with very few buttons," says Kaplan. 
"Same thing with home networking. Does the average consumer care about what kind 
of security they have, or just that they have it? Do they want 40 choices of 
port mapping, or for us to just choose one for them?"</P>
<P class=inside-copy>To set up the network manually, users can bypass the 
automatic settings, click the advanced tab and make individual decisions.</P>
<P class=inside-copy>Research firm IDC says that only a third of U.S. homes have 
a home network. That leaves room for growth. Kaplan says home networking 
potentially could be a much larger business than video.</P>
<P class=inside-copy>Sales of routers are flat. Last year, 11.4 million units 
worth $735 million were sold. IDC predicts sales of 11.5 million units this 
year.</P>
<P class=inside-copy>"Cisco has 10 years of consumer frustration to overcome," 
says IDC analyst Jonathan Gaw.</P>
<P class=inside-copy>But Kaplan says consumers' appetite for a new generation of 
TVs, Blu-ray players and even clock radios that can connect wirelessly to the 
Internet will help bring him new customers.</P>
<P class=inside-copy>"These apps will push people to buy the new routers," Gaw 
agrees.</P>
<P class=inside-copy>Gaw says putting all the heavy lifting into the USB dongle 
was a smart move.</P>
<P class=inside-copy>"Normally, if you were going to install a secure wireless 
network, you'd have to create a password for the router, change the name of the 
router and create a password for the wireless part of it," he says. "Now that's 
all preset in the key. You don't have to type in anything. ... This is a 
significant step."</P>
<P class=inside-copy><B>Marketing the Valet </B></P>
<P class=inside-copy>Cisco has been in the business of selling routers for 
years, via its <A title="More &#13;&#10;news, photos about Linksys" 
href="http://content.usatoday.com/topics/topic/Linksys">Linksys</A> subsidiary, 
and will continue making more complex boxes for the tech savvy, Kaplan says. 
Competitors include <A title="More news, photos about Netgear" 
href="http://content.usatoday.com/topics/topic/Netgear">Netgear</A>, <A 
title="More news,&#13;&#10; photos about D-Link" 
href="http://content.usatoday.com/topics/topic/D-Link">D-Link</A> and <A 
title="More news,&#13;&#10; photos about Belkin" 
href="http://content.usatoday.com/topics/topic/Belkin">Belkin</A>.</P>
<P class=inside-copy>New Linksys routers are due out this week, too.</P>
<P class=inside-copy>Kaplan pared the line of 12 routers down to four.</P>
<P class=inside-copy>Prices range from $79 to $179.99. Features include the 
ability to have two separate networks run via one router.</P>
<P class=inside-copy>To get the word out about the Valet, Cisco is launching an 
extensive national advertising campaign beginning this week.</P>
<P class=inside-copy>"We will spend more to market the Valet than the entire 
category has in five years," says Simon Fleming-Wood, senior director of 
marketing. "Tens of millions of dollars. This will be the first mass-market 
networking product."</P>
<P class=inside-copy>Ads will begin appearing beginning this weekend, first in 
Sunday circulars, followed by broadcast television, in print, online and on 
billboards, Fleming-Wood says.</P>
<P class=inside-copy>At Cisco, the Pure Digital name has been retired. Future 
Flip cameras — new models are slated for later this spring — will bear the Cisco 
moniker.</P></TD></TR></FONT></DIV>
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