This proposal outlines how the SME partners will develop a low cost Free Space Optics (FSO) product for distribution of fibre-quality broadband to homes. The requirements for high capacity broadband are on the public agenda, and the fibre network backbone is constantly developing. However, the number of subscribers is not increasing at similar rates to match the increase in actual fibre backbone availability. The main reason for this is identified to be that connecting fibres to houses is often cumbersome and expensive. The connection cost from access point to the household is often judged to be the critical factor in deciding whether to connect or not. The ConnectTOO project aims at providing a new cost- effective means of connecting to the fibre-based broadband infrastructure. A significant reduction in installation costs will increase the number of subscribers of fibre to homes.Wireless technology has the ability of reducing installation cost, thereby adding more subscribers. None of the wireless solutions offered today has the ability to be the fibre alternative for connection of broadband to homes. FSO technology is used for wireless broadband connections, but the products offered aim at other markets. They are too costly, too large, and not suited to be used in connection to homes.The project will make the SME’s more competitive through providing them with a new high capacity low cost product, opening new market possibilities to the partners, increasing their technological competence and by building new and valuable business network. This proposal shows the uniqueness of the FSO solution behind this project idea, the technological challenges which remain to be handled and how the SME partners plan to overcome them. The product arrived at will provide a totally new opportunity to broadband service providers, and significantly increase the number of houses that will actually gain access to the high capacity broadband fibre network.