By Dominic Maher, 29 January 1999 00:15
NEWS US-based networking specialist, Tut Systems has increased the price of its initial public offering by $2 a share. Originally priced between $14 and $16 per share, the 2.5 million shares on offer are now expected to fetch $16 to $18. With interest running high in the networking company, Clive Longbottom, strategy analyst at CSL Consulting, thought it sounded like a case of "take the money and run". He predicted the company would be successful for the first few months but "the bubble could burst rapidly". Analysts at Yankee Group have predicted there will be five million home networks in the US by 2002. Tut is one of the main players in the Home Phoneline Network Alliance (HomePNA) which creates a network using existing phone lines. But Longbottom warned some customers would be put off by the thought of re-wiring their homes, and the Bluetooth alliance, which uses wireless technology and has the backing of Ericsson, IBM, Nokia, Toshiba and Intel, "holds more promise". "No one wants the hassle of extra wiring in the home," he added.
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