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  • There are 233 million analog TVs in 94 million homes, and these analog TVs will be in use for a decade (Source: FCC Chairman Reed Hundt). Digital standards are being developed for set-tops, which will act as a bridge until the digital compression functionality can be integrated into the television itself. The RG can act as a bridge for the transition period from analog TV to digital.

  • Hughes/RCA DirecTV has shipped 1.2M units in 12 months, and Primestar Partners (TCI and cable-backed consortium) have signed 770,000 subscribers in nine months (Source: DBS Digest). Forrester Research forecasts DBS subscribers to reach 10 to 12 million by the year 2000.

  • US households are acquiring PCs in record numbers and will continue to do so in the short-term, spending more on PCs than on TVs and VCRs combined. Today, 30% of homes have a PC and 50% of households are expected to own a PC in two years (Source: Wall Street Journal).

The following sections of this report define the types of services that a Residential Gateway could provide or facilitate, identifies the known and expected interfaces, and provides the design principles that the RG group feels are required to make the RG concept a reality.

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