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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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« Who Owns The Wires? | Main | Why Gateways Matter »

April 16, 2004

What's A Gateway?

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Posted by Dana Blankenhorn

A gateway has an Internet connection on one side, and some sort of LAN connection on the other. (Usually it includes a wireless LAN.) It's a modem, it's a router, it's a switch. It's pretty cool. (The picture is from Johnkdavis.net.)

But what is it in terms of the market? How will you get it?

Is it a set-top box? Certainly the friends who got me curious about all this in the first place think so. A carrier defines their Internet services through the gateway. Phone companies are picking partners. They could point to Bell Canada's tie-in with Siemens. All the carriers are picking partners. Get hitched now or miss out. Who do they play golf with?

Is it a modem? This was the surprising conclusion of ABI Research, in a report issued late last month. Standards are emerging, there will be little to tell between them, they said. This is how consumers like it, and it's a great way for DSL to pick up market share against cable, since cable companies prefer wires to wireless.

Is it a cell phone? The DSLForum is voting on proposed standards right now, for what's in the gateway, the server it connects to, and the way that server connects. But not every gateway will work on every DSL network. Maybe phone companies could put a range of gateways on offer, at a range of prices, ranging from free to a few hundred dollars, with different capabilities -- some handling video, others focusing on punching through walls, still others basic units for home networking.

I'm not sure what the answer is. Rob Keenan of CommsDesign suggested that it could change. Basic units might go retail, the way Linksys routers do, but as video takes hold phone companies might give them away as part of the service. "I care about cheap, easy to install, and whether it works," he said. "All this other stuff is meaningless."

So what do I conclude? I conclude that you can't draw a final conclusion. If you're making gateways you try everything, a full-court press.

But if you're really careful you look to what comes after them...

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