Residential Gateways – Their Time Has Finally come!
A new report, "Residential Gateways, Volume II of Bringing the Lightwave Home," from IGI Consulting, Inc. (www.igigroup.com) proclaims that the time has come for Residential Gateways to be a viable market. The Residential Gateway (RG) was developed as a concept in the 1990’s by a multiple company group of planners and engineers. It has since been the objective of a number of abortive start-ups, and numerous missteps. A number of recent developments, including the coming predominance of multiple home computers, and the availability of a number of broadband network choices, have brought the concept of a Residential Gateway back to the forefront with many prominent vendors involved.
The author, Clifford Holliday, president of B & C Consulting Services, notes in the report, "There have always been three issues with the successful development of an RG: technology, economics, and operational capabilities." The report examines each of these and demonstrates the current attractiveness of an RG product.
The report parses the Residential Gateway market in to three types of device:

• Whole House RG – This is the closest to the original RG concept. It will address entertainment (video and audio), communications (telephony), high-speed data access, and control and monitoring (HVAC, security, lighting, etc.) functions.
  
• Internet RG – This is the version that is intended to directly address the multiple computer, multiple high-speed access problem in the home.
  
• Set-Top RG – These are the CATV based, digital solutions. They are the descendents of the analog TV set-top box, but with full digital capabilities, and many features.
  

The report projects a substantial market for these products as the following table illustrates.

Dr. Polishuk, President of IGI Consulting, comments, "This is the first report that really frames the Residential Gateway in a context of its total environment – the networks that connect to both sides of a Residential Gateway. Mr. Holliday, as author of this report (and the "Lightwave Series") brings a unique perspective to this task, having been instrumental in many of the major events in the broadband residential area. He was one of the originators of the Residential Gateway (RG) concept. He was a primary author of the original Residential Gateway report that first described the RG, as well as one of the major influences in the redesign of residential access that has taken place in the last decade. He was a leader of the Cerritos and Vistanet high-speed network demonstration projects, and the leader of the team that developed one of the earliest specifications for the Next Generation Digital Loop Carrier- the ERLU."

Residential Gateways is one of three volumes (Volume II) of a total report entitled "Bringing the Lightwave Home." The entire report provides exhaustive coverage of Broadband Residential Networks (wire line, fiber/coax, PONs, CATV and radio-based), Residential Gateways (whole house, Internet, and set-tops), and Home Networks (cable-based, phoneline, powerline, and radio based.) Each area is discussed as to market drivers, underlying technologies, applications, price and market forecasts, vendor profiles, and standards activity.

TABLE OF CONTENTS

TABLE OF FIGURES

SUMMARY OF CONCEPTS

INTRODUCTION

THE HOME OF THE FUTURE

MARKET DRIVERS

• THIRST FOR BROADBAND ACCESS
  
• THE INTERNET
  
  • xDSL Forecasts
    
  • Cable Modem Forecasts
    
  • Radio-Based High-Speed Line Forecasts
    
  • Fixed Wireless
    
  • Satellite-Based Service
    
  • Total High-Speed Residential Line Forecast
    
• OTHER DRIVERS
  
  • Multiple Computer Homes
    
  • New Home Construction
    
  • Home Network Justification – A Cost-Based Driver
    

SEGMENTATION OF THE NETWORK

• LONG-HAUL DWDM
  
• METRO DWDM (METRO CORE)
  
• ACCESS NETWORK EQUIPMENT (METRO ACCESS)
  
• WAVELENGTH ROUTERS & OPTICAL SWITCHES
  
• TERABIT ROUTERS & GIGABIT SWITCHES
  
• AGGREGATION DEVICES
  
• ENTERPRISE ACCESS SYSTEMS
  
• VIDEO ACCESS EQUIPMENT
  
• RESIDENTIAL ACCESS SYSTEMS
  

THE RESIDENTIAL GATEWAY

• WHAT IS THE RG?
  
• HOW DID THE RG IDEA ORIGINATE?
  
• WHERE DOES THE RG STAND TODAY?
  
• DIFFERENT PHILOSOPHIES OF THE RG
  
  • The Telco
    
  • The Telecommunications Equipment Manufacturer
    
  • The Computer Manufacturer
    
  • The Facility Services Companies (IXCs, CATV companies, ISPs, CELCs, etc.)
    
  • The Home Entertainment Equipment Manufacturers
    
  • Developers (Home Builders)
    
  • The End User – ‘Customercentric’
    
• BUSINESS CASE FOR THE RG
  
  • RG Business Case – What are the Issues?
    
  • Business Case – Value
    
  • Business Case – Costs
    
  • Business Case – Who Will Benefit?
    
  • RG Business Case – RG Services – What Are They?
    
  • Entertainment Based
    
  • Internet/Data Based
    
  • Telephony Based
    
  • Home Protection/Automation
    
  • Applications Enhanced by Combinations of New Services
    
  • RG Support of Features – By Type
    
  • Business Case – Conclusion
    
• WHAT ARE THE CARRIERS DOING?
  
  • Pacific Bell (SBC)
    
  • Verizon
    
  • Bell South
    
• RG TECHNOLOGY
  
  • General
    
  • External Network Connection
    
  • Internal Bus Objectives
    
  • Options
    
  • Memory and Processor
    
  • Operating System
    
  • Device Management
    
  • What Is Needed to Achieve Device Management?
    
  • What is Available?
    
  • What Are the Design Trade-offs For Location Options?
    
• TECHNOLOGY ISSUES
  
  • "Whole House" RG
    
  • The "Internet RG"
    
  • xDSL vs. Cable Modems
    
  • Set-Top RGs
    
• REVIEW OF RG VENDORS
  
  • Summary of Whole House RG Vendors
    
  • N/A
    
• Summary of Internet RG Vendors
  
• Summary of Set Top RG vendors
  
• Vendors’ Profiles
  
  • 2Wire
    
  • 3Com
    
  • Arescom
    
  • Atronics International (ATI)
    
  • Broadband Gateways
    
  • Cayman Systems
    
  • Cisco
    
  • Coactive Networks
    
  • Comverge Technologies Inc.
    
  • Com21 Inc.
    
  • Convacent
    
  • D-Link
    
  • Ericsson
    
  • Efficient Networks (FlowPoint Corp.)
    
  • Full House Control
    
  • Global Converging Technology
    
  • Harmonic Data Inc.
    
  • Home Director Inc.
    
  • Home Wireless Networks
    
  • Honeywell
    
  • IBM
    
  • Ishoni
    
  • JDS Technologies
    
  • Light Media Interactive
    
  • Lucent
    
  • MaxGate Technologies
    
  • Motorola
    
  • NDC Communications
    
  • NetGear
    
  • Next Level Communications, Inc.
    
  • Nokia
    
  • Novell
    
  • Pace Micro Technology
    
  • Panja
    
  • Sage Systems
    
  • Sarnoff Labs
    
  • Scientific Atlanta
    
  • ShareGate
    
  • SonicWALL
    
  • SmartAmerica
    
  • Stellar One Corp.
    
  • ST Microelectronics
    
  • Tut Systems
    
  • Ucentric Systems
    
  • UStec
    
  • ViaGate Technologies
    
  • Vicomsoft
    
  • Westell Technologies
    

PRICE FORECASTS

• RESIDENTIAL GATEWAYS
  
  • Whole House RG
    
  • Internet RG
    
  • Set Top RG
    

MARKET FORECASTS

• RESIDENTIAL GATEWAYS
  
• Whole House RGs
  
• Internet RGs
  
• Set-Top RGs
  
• TOTAL RG MARKET
  

SUCCESS STRATEGIES

• CARRIERS
  
• VENDORS
  

STANDARDS ACTIVITIES

• ADSL Forum
  
• Cable Labs
  
• Digital Audio Visual Council
  
• Electronic Industries Alliance
  
• IEEE-1394
  
• IEEE- 802.3
  
• T1
  
• Universal ADSL Working Group
  
• Video Electronics Standards Association
  

APPENDIX I – MATRIX OF PROVIDERS

APPENDIX II – LISTING OF ACRONYMS

• Figure 1, Report Major Volumes
  
• Figure 2, SBC xDSL Gain in 2000
  
• Figure 3, xDSL In-Service End of 2000, Selected Companies
  
• Figure 4, xDSL Forecast – US
  
• Figure 5, Cable Modem Forecast
  
• Figure 6, Fixed Wireless Forecast – US Subscribers
  
• Figure 7, Satellite High-Speed Access - US Subscribers
  
• Figure 8, xDSL and Cable Modem High-Speed Lines - US Forecast
  
• Figure 9, Comparison of xDSL and Cable Modem Forecasts
  
• Figure 10, Total High-Speed Access Lines – By Type
  
• Figure 11, Total High-Speed Access Lines
  
• Figure 12, High-Speed Accesses vs. Household Growth
  
• Figure 13, Households with Computers and Multiple PCs - US Forecast
  
• Figure 14, New Home Construction - US
  
• Figure 15, Cost Savings Available from Home Network Plus RG
  
• Figure 16, "Riding the Lightwave" Rationale
  
• Figure 17, RG Types Defined
  
• Figure 18, Business Case Equation
  
• Figure 19, Customers’ RG Benefits
  
• Figure 20, Network Providers’ RG Benefits
  
• Figure 21, Hardware Providers
  
• Figure 22, Table of Features RG Types Cross-reference
  
• Figure 23, RG - Major Systems
  
• Figure 24, Video Use Channel Requirements
  
• Figure 25, Device Management Layout
  
• Figure 26, Typical Whole House Design
  
• Figure 27, Internet RG Typical Layout
  
• Figure 28, Types of xDSL
  
• Figure 29, Comparison of Various Internet Access Methods
  
• Figure 30, Typical Set-Top RGs
  
• Figure 31, Vendor Summary RG "Whole House" RGs – Summary
  
• Figure 32, Vendor Summary Internet RG
  
• Figure 33, Vendor Summary Set Top RG
  
• Figure 34, Application of D-Link 704 Home Gateway
  
• Figure 35, Next Level RG Application
  
• Figure 36, Pace RG Vision
  
• Figure 37, Panja Home Gateway Connection to Entertainment System
  
• Figure 38, Whole House RG Cost Forecasts
  
• Figure 39, Internet RG Forecast Costs
  
• Figure 40, Set Top RG Costs
  
• Figure 41, Whole House RG - Acceptance Percentage
  
• Figure 42, Market Forecast - Whole House RG
  
• Figure 43, Acceptance Percentage - Internet RGs
  
• Figure 44, Market Forecast - Internet RGs
  
• Figure 45, Acceptance Percentage - Set Top RGs
  
• Figure 46, Market Forecast – Set-Top RGs
  
• Figure 47, Market Forecast - Total RG Market
  
• Figure 48, Unit Forecasts for Residential Gateways
  
• Figure 49, Cumulative Residential Gateway Market Forecast