Light Reading

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.
Flash Poll
From The Founder
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Adtran Is Developing White Box GPON Tech
Ray Le Maistre, Editor-in-chief, 4/24/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment