:: Market and technology trends

A cable modem Internet connection is always on, unlike the dial up modem. You don’t have to dial up, as soon as your computer is turned on, the Internet connection starts.

Generally the costs are $40 - $60 per month for an Internet service package that includes software, unlimited Internet access, specialized content and rental of a cable modem. At the low end of this pricing scale, a very robust Internet service is available to consumers for about the cost of a dial-up account with a local Internet service provider and a second telephone line.

A cable modem can provide Internet access to multiple PCs, assuming they are connected via a local area network (LAN). Cable modems typically have an Ethernet output, so they can connect to the LAN with a standard Ethernet hub or router. Each PC must have an assigned IP address, which the cable ISP usually sells at a premium of $5-$10 a month per PC

In late 1998 cable companies started deploying standards-based DOCSIS cable modems, which are now being sold at some retail markets.

There are more than 40 companies who produce cable modem products. Some of the known names are 3Com, Cisco Systems, Com21, Ericsson, Motorola, Samsung, Terayon, Toshiba, Thomson, and Zoom.

Cable modems have caught on in a significant way and there are reported to be over 3 million subscribers to Cable Internet. The Strategis Group predicts that, by 2006, the Residential Broadband network, that includes Cable, DSL and Satellite, shall reach over 35% of homes in the US, i.e. well over 38 million homes.

Prominent providers such as Excite@Home disappeared and many ISPs declared bankruptcies in 2001 and 2002. The growth in the residential broadband market has thus been tempered compared to the heady growth seen in 1998 through 2000.

In January 2002, the Technology Network, a group of hi-tech CEOs urged the Federal Government to develop a National Broadband policy. The goal is “100 Mbps connectivity to 100 million people by the year 2010”. The current subscriber base is just 12 million households.