Overview Using an analog modem is almost inconceivable for most who have adopted digital modems. Digital broadband access to the home has revolutionized communication providing a speedy, two-way communication channel. Internet and Email access, and the ability to transmit real-time video anywhere and anytime, is a revolutionary concept only possible by broadband access, and digital modems are helping make this a reality. A digital modem may be a single chip solution that is incorporated within the set-top box or a system used together with a PC. This has excited the consumer, and helped create different islands of technology such as the PC island, multimedia island, and others in the home. The digital modem provides Internet access to all these islands of technology. Home networking tries to network islands of technology and information appliances such as PCs, amplifiers, speakers, digital TV, digital-VCRs, DVD players, gaming consoles, CP/MP3/cassette players, camcorders, web/kitchen pads, printers, security systems, utility meters, washers-dryers, and many more to a single device in the home. A single chip modem solution combined with a home networking chipset (PHY and MAC) will provide this single device to create your home network. This single connection medium is called a residential gateway and since today the digital modem provides a single connection, it is seen to be evolving into a residential gateway. This single gateway will provide broadband access and home networking capability. Market Research The demand for digital modems is being fueled by the growth in the number of Internet users. The number of people working from home and connecting to their corporate LAN from home has been rising. Telecommuters and day extenders connect to the corporate LAN through the Internet using Virtual Private Network (VPN) technology to have equal access to the corporate LAN while being at home. Home businesses are also requiring faster access to the Internet. Home networking and Internet services are fueling the demand for bandwidth because of applications such as streaming video, web browsing and online shopping that use high resolution images. Applications such as streaming video, Web browsing, email, MP3 files, Voice over Internet Protocol (VoIP), digitized photographs, Video-on-Demand (VOD), and online gaming all require fast Internet access. Also traditional methods to connect to the Web have hit a technological barrier. Analog modems using phone lines cannot provide bandwidth beyond 56 Kbps. Digital modems meanwhile offer much greater bandwidth with an always-on connection. Leading Technology Analog / Dial-up modems Cable modems xDSL modems ISDN modems Satellite modems