Light Reading

TWC Whips Out SIP Trunking

Alan Breznick

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        ADD A COMMENT
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. 
User Rank: Blogger
1/23/2014 | 9:28:25 PM
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.
From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Centec on Ethernet Switching

11|26|15   |   09:58   |   (0) comments

Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
LRTV Custom TV
Delivering Service Agility in the Virtualization Era

11|25|15   |   5.41   |   (0) comments

Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (10) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (2) comments

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Samsung: No Sale of Wireless Unit
Dan Jones, Mobile Editor, 11/25/2015
How Might Open Source Fail?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
Networking Shines in HP's Gloomy Final Earnings
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Cats with Phones
Can't Find the Phone on Thanksgiving? Click Here
Check under the cat! (hint: bottom right)
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.