The recent and explosive growth in popularity of the Internet has led to a reexamination of the data connectivity needs of end users. While today most users are limited to so called analog modems capable of data rates below 56,000 bits-per-second, next generation connectivity systems in development promise to increase data rates by at least a factor of 100. These new systems are targeted primarily at the residential market where the volume of data received is much less then the volume of data transmitted. This asymmetric transport property makes systems design substantially easier because, with slight modification, systems originally designed for television broadcast, such as cable TV, Asymmetrical Digital Subscriber Lines (ADSL), or broadcast satellites, are used. The problem is that current suppliers do not aggressively pursue the development of second generation systems that target heavy business users. What is needed is a semiconductor chip set that would enable telecommunications equipment manufacturers to create high data rate transmission systems specific to business needs while allowing service providers to capitalize on the existing and iμstalled copper wire plant. The paper that follows validates the market opportunity for this type of a chipset. First, the paper examines external macro-market drivers that create the need for the services deployable with this chipset. Next, the size of the market is analyzed and forecasted using both indirect and direct market research. Finally, the structure of the market for the proposed product is analyzed, the potential customer base explored, and a competitive analysis given.
