Netopia, which provides broadband gateways and service-delivery software, today unveiled a new, pocket-sized modem which it claims can instantly convert a user’s dial-up Internet connection to DSL.

With the tiny ADSL2/ADSL2+ Pocket Modem - which weighs less than 3.5 ounces and can fit through a mail slot - telcos can now offer DSL to their dial-up subscribers on a free-trial basis through direct mail programs.

All a user has to do is plug the self-installing modem into the USB port on their PC with Windows XP and the device does the rest: It automatically configures the user’s Internet Explorer browser settings from dial-up to broadband and allows them establish DSL service without the need for support.

With the new “plug and play” modem, telcos and ISPs can mass market DSL services - much the same way AOL mailed trial CDs to grow its dial-up Internet business in the 1990s.

Netopia is demonstrating the new device today at GlobalComm (News - Alert) 2006, which is being held this week in Chicago.

According to the U.S. Government Accounting Office (GAO), approximately half of all U.S. Internet subscribers - more than 30 million Americans - still use dial-up for their Internet service. Netopia hopes that the new mini modem will help users overcome their fear of DSL by eliminating the need to load complex new software and get assistance from tech support.

For Telcos and ISPs, of course, the big advantage comes mainly in the form of greatly reduced truck rolls.

“Our new Pocket Modem with built-in installation software makes it extremely easy for anyone, even the most inexperienced computer user, to set up and try high-speed Internet for the first time,” said Ray Smets, senior vice president of sales and marketing at Netopia. “Once subscribers try broadband, they typically don’t go back to dial-up. If they can find their USB port they will have DSL service within minutes.”

Although it is inexpensive, the Pocket Modem doesn’t skimp on the needed features. It sports a firewall and VPN support for security purposes – plus, it is compliant with TR-069, the DSL Forum’s remote management specification, which means it can be remotely managed by TR-069 device management systems such as Netopia’s NBBS platform. Additional features include a built-in PPPoE client and one-click diagnostics for self-support (thus further reducing carrier costs).

The Netopia Pocket Modem will be available in July. For more information, visit http://www.netopia.com.

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Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.