LAS VEGAS--Trying to build on its heritage in both the set-top box and cable modem markets, Scientific-Atlanta is working on an initiative to develop a series of residential gateways for both multiple system operators and telcos.

While focusing plenty of attention on the IPTV space at the International CES event last week, the company is jumping on the trend of offering products for the entire connected home concept, said Todd Waters, director of business development-IP subscriber networks for SA.

“It’s something we think we can leverage with our experiences in data,” he said. “And we think Scientific-Atlanta understands moving video around better than anyone.”

The residential gateway market is quickly emerging as one of the most significant opportunity for vendors because it hits on one of the most expensive elements of the telco video business. At CES, a number of vendors have started to show off new boxes that combine high-speed modems, multi-line routers and set-top boxes.

Perhaps the biggest question for SA and others in the telco market is which in-home transmission technology to support. The company currently is looking at both Multimedia over Coax Alliance (MOCA) and Home Phoneline Networking Alliance Technology. AT&T, which said it would use SA set-top boxes in its recently launched U-Verse IPTV service, is open to either since both work, said Jeff Weber, vice president of product and strategy for AT&T.

And in fact, SA isn’t likely to cast its lot with one, according to Waters.

“We have opinions, but the customer makes the ultimate decision,” he said.

SA also will keep its eye on various wireless flavors as an option, though it believe the technology isn’t solid enough to transmit video around the typical house.

“Wi-Fi eventually will get there,” Waters said. “But it’s not quite there for video yet.”