Light Reading
Second largest US MSO introduces SIP Trunk service in eastern regions as it steps up its pursuit of the commercial middle market.

TWC Whips Out SIP Trunking

Alan Breznick
1/23/2014
50%
50%

Eager to lure more business customers away from the incumbent telcos, Time Warner Cable is rolling out SIP trunking throughout the US as part of its drive to expand beyond the smallest firms and target more midsized companies.

Time Warner Cable Inc. (NYSE: TWC) began the rollout of SIP trunking service last week, introducing SIP trunking in its "legacy east" markets of New York City, upstate New York, Maine, and the Carolinas. Plans call for extending the new VoIP-based service to the MSO's western regions, including Ohio, Kentucky, Wisconsin, Kansas City, Texas, and California, in February. (See TWC Introduces SIP Trunking.)

The move by TWC comes at the same time that its fellow large MSO, Comcast Corp. (Nasdaq: CMCSA, CMCSK), is also starting to roll out SIP trunking. Speaking at Light Reading's Future of Cable Business Services event in New York last month, John Guillaume, vice president of product management and strategy for Comcast's business division, said Comcast will deploy SIP trunking nationally by the end of 2014 after testing it in three undisclosed regional markets. (See Comcast Plots National SIP Trunking in 2014.)

In its press release announcing the launch, TWC said the new SIP trunk product "offers a flexible and cost-effective alternative to traditional TDM-based voice trunk services for those businesses with IP PBX equipment." Delivered over the MSO's "fiber-rich network," the service also offers dedicated bandwidth for voice calls so that voice and data traffic will no longer compete for bandwidth on the cable operator's network.

Specific features of the SIP trunk service include: unlimited local calling, caller ID, inbound/outbound call blocking, calling name and number delivery, alternate routing, a web portal for managing service features, and flexible options to buy as few as six call paths initially and then add more paths one at a time.

TW Cable officials say the SIP trunk service will complement the PRI trunk services they already offer to commercial customers. In an interview with Light Reading, Parimi Satyanarayama, Group VP of Time Warner Cable Business Class, said they also view SIP trunk as a replacement service for PRI as companies get larger or seek to upgrade to IP-based phone service.

"We think it's a replacement play," he said. "We have PRI. People like it but they want to future-proof themselves."

With the SIP trunk product, TWC executives are initially targeting companies in what they term the "lower middle market," or firms with 25 to 99 employees. They then plan to expand it to the upper middle market, or forms with 100 to 499 workers, as well as larger enterprises.

"The sweet spot initially is the lower middle market, people who want to buy 10 to 12 trunks and want to buy data with it," Satyanarayama said. "The target market for us is people who already have IP-PBXs but still use PRI, or people who are looking to go to IP-PBXs." He estimated that the market opportunity for the initial SIP trunking release is now about $200 million in TWC's footprint, rising to $350 million later this year when the MSO comes out with its next version for larger companies.

While those amounts are dwarfed by the current market opportunity for PRI, TWC and their counterparts at Comcast and other MSOs see SIP steadily picking up steam. Satyanarayama, for instance, said TWC officials expect the SIP Trunks market to grow at a 20% to 25% annual clip over the next three years while the total trunking market stays relatively flat or declines slightly.

The SIP trunk rollout is part of TW Cable's grand plan to greatly expand its role in the commercial telecom market. Phil Meeks, COO and executive VP of Time Warner Cable Business Class, has set a goal of doubling the company's annual business services revenues to $5 billion over the next four to five years. (See Meeks Sees Business Boom at TWC.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/24/2014 | 12:35:49 PM
Re: Market
Yep, they see it as another prime opportunity. The TWC folks say SIP trunking makes up just 7% of the trunking market now. But they project that SIP could catch up with PRI in about 5 years. I'm betting the MSOs will beat the telcos to the punch here. 
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/23/2014 | 9:28:25 PM
Market
SIP trunking has really been exploding the last couple years. The cable guys might not be first with this in some markets, but I'm betting they are looking broader and deeper at the potential customer base than some providers.
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed