1. What market trends are driving products that enable Internet connectivity?

There are many trends driving the development of Internet enabled devices. The first is the widespread adoption of the Internet itself. More than 327 million households worldwide are now connected to the Internet, according to the Internet Industry Almanac. That's an incredible market. And as the Internet becomes more widespread, it becomes more a part of the infrastructure, like an electrical grid, that allows others things to be plugged into it.

The second is consumers' seemingly insatiable desire for high quality entertainment and content. People want to access information, communicate with friends and family, upload digital pictures of the family and play their MP3. The demand obviously isn't infinite, and a lot of products have failed, but as new products are delivered at a reasonable price point, they'll meet with a great consumer response.

Third, manufacturers of products such as household appliances and security systems are moving quickly to add Internet connectivity capability, lured by the possibility of improving their bottom lines either through remote services or reduced service calls.

Another trend, which is really a technology enabler, is advances in embedded microcontrollers and microprocessors - microchips are the starting point to enable equipment manufacturers to develop affordable Internet connected devices. These chips are becoming more integrated, with design and manufacturing advances allowing more functionality on one chip, for less cost.

2. What challenges are the designers of the above-mentioned products facing?

The chief design challenge is how to provide both the control and the voice/audio functionality at a cost the market will bear. What I mean by that is most of these new devices combine control functions traditionally associated with a type of microchip called a micocontroller or MCU, and fast processing of digital information, traditionally handled by a digital signal processor or DSP. Until recently, there hasn't been a product on the market that combined both these functions at a low cost. It's not feasible for manufacturers to put a $50 microchip into a light switch or a washing machine-the market won't bear the subsequent price increase.

3. What role do semiconductor "microchips" play in helping home networking and automation products incorporate Internet connectivity capability?

"Microchips" provide the intelligence that enables Internet connected devices to talk over a network with other devices in the home, or a central computer, or to communicate via the Internet with remote computers. Putting a network jack into a refrigerator isn't enough to make it Internet connected. There has to be something in the appliance that can exchange information with the outside world, whether the Internet or a home network, and give instructions to other parts of the appliance based on that information. For example, a refrigerator connected to a power management system might be told to slightly reduce its power consumption during peak electrical usage. The microchip inside would need the ability to both process the digital communications signal from the Internet and to control the operations of the refrigerators' motor.

4. How will advancements in embedded microcontrollers affect the price of products with Internet connectivity?

Advances in embedded microcontrollers will considerably lower the cost of adding Internet connection capability to a wide variety of products and systems found in the home. This means consumers will see real products for every day use, not just high-end tech toys.

5. What impact can end consumers expect to see from Motorola's newest hybrid DSP controllers for Internet connectivity?

Even though we are in an economic slowdown, designers are still aggressively planning the next big thing. The designers and manufacturers who are poised to win when the industry turns around will be those that have the best designs ready to bring to market. Motorola's new hybrid DSP controllers fill an important market niche for low cost, high performance systems. They give designers the ability to engineer Internet connected products that can be manufactured and sold for marginally more than the standard non-Internet connected device. Translation: consumers can expect to see some exciting things in the next two to five years for entertainment and convenience as well as cost-savings.

6. For home networking and automation, what should consumers expect to see in 2002? In 2005?

In 2002, we anticipate that manufacturers will move aggressively and cautiously at the same time. Nobody wants to get caught with an Edsel. I think you will see more power and energy management features as well as security related devices - simple cameras connected to the Internet, intrusion detection systems and electronic locks that can be engaged and disengaged remotely. Utility companies are very interested in the ability to offer power management and real-time power usage monitoring.

In five years, consumers should expect to see a host of plug and play network connected devices. Many appliance manufacturers will offer an Internet connected versions of their appliances. New power management features should be common, and not just for new homes, but for older homes as well. In addition, consumers will be able to purchase a variety of new services from companies developing new business models to serve the connected home.

7. A recent survey at HomeToys.com asked "What does the industry need to do to help you "connect" your home?" Responders indicated that "Lower Prices" and "More Education" are the most important factors ... far outweighing "More Dealers", "Simpler Solutions" and "More Products". Does this agree with your view and how will Motorola help to satisfy these concerns in the near future?

Absolutely. Although early adopters often buy new technologies for technologies' sake regardless of price, the mass market has always been very responsive to reduction in price when there is a corresponding perception of benefit or value. Beyond price, the challenge is getting people to understand what the benefit is to them. With most technologies, people don't perceive the benefit until they use it. Then the technology becomes a must have. Look at the way cell phones for example have penetrated people's lives. Cell phones started out as a high- end business service. Then as infrastructure was put into place in more regions and prices came down, adoption took off. Now Mom, Dad and the kids will often each have their own cell phone and would claim to have a difficult time not having a cell phone. The same thing will happen with home automation and networking.