In its latest study, the DC-based market research and consultingfirm projects that high-speed data revenues alone will approach$1.8 billion for MDUs, and the total market for communicationsservices in these units will reach $29 billion. In addition, videoon demand revenues will top $770 million for the years spanning2000-2005 in this market.

Current census data shows that about a third of the populationlives in MDUs, says Jason Marcheck, analyst with the StrategisGroup and primary author of the study. By the end of 2000, the USwill have about 21.5 million MDUs and up to 23.5 million by 2005.While public housing and eldercare facilities, mixed into thisgroup, may not be the best candidates for broadband services,there's plenty of underserved tech-savvy tenants out there waitingfor them.

"In terms of service availability, this is an under-servedmarket," says Marcheck. "Right now we have a situation where largegroups of tech-savvy consumers are living literally right on top ofone another. This market represents a tremendous opportunity forservice providers."