& cplSiteName &

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        ADD A COMMENT
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.
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Three Gets Smart(y), BT Invokes Twitter – The Recap

8|21|17   |     |   (0) comments


From Telecoms.com, a recap of the week's telecoms talking points. It's been a week of gimmicks as Three tests out a pay-as-you-go sub-brand called Smarty; Comcast
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Orchestration Startup UBiqube Pivots Away From NFV
Carol Wilson, Editor-at-large, 8/15/2017
WiCipedia: Dolly Babes, Manifesto Backlash & 'Brotastic' Failures
Eryn Leavens, Special Features & Copy Editor, 8/18/2017
Ericsson Plans 25,000 Job Cuts – Report
Ray Le Maistre, International Group Editor, 8/17/2017
Stream or Split, Says Amazon
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/16/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.