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Cable VOIP Gains at Telco Expense

Michael Harris
News Analysis
Michael Harris

With the larger cable operators all rolling out VOIP to their markets, a new study predicts that North American MSOs will sign up nearly 28 million residential phone customers by the end of 2009, increasingly at the expense of the telcos.

In the study, Convergence Consulting Group predicts that U.S. cable operators will have 24.5 million residential phone customers, or 24 percent of the total American phone market, in a little more than three years' time. That represents a big jump from 5.6 million phone subscribers, or 5 percent of the total market, at the end of 2005 and an estimated 9.1 million phone users, or 8 percent of the total market, at the end of this year.

Similarly, Convergence Consulting believes that Canadian cable operators will more than double their share of the residential phone market over the next three years. The study predicts that Canadian MSOs will have nearly 3.3 million residential phone users, or 27 percent of the total Canadian phone market, by the close of 2009. That's up from 835,000 phone customers, or 6 percent of the total Canadian phone market, at the end of last year and an estimated 1.6 million subscribers, or 12 percent of the overall market, at the close of this year.

Get the whole story at Cable Digital News.

— Alan Breznick, Site Editor, Cable Digital News

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12/5/2012 | 3:39:27 AM
re: Cable VOIP Gains at Telco Expense
MSOGĒÖs are facing potential competition from telecoms in their core video service (Verizon is providing/promising IPTV service to their growing FiOS customers). For MSOGĒÖs, the gains in cheaper VoIP services may not offset their losses in video especially if telecom provided IPTV services offer better features to the customers (like HDTV/VOD etc). Owning fiber connections to the homes/businesses might actually give an edge to telecoms to offer better video/voice services. I am not familiar with MSO space but are any of them planning for a network upgrade to face these challenges GĒō in our area I donGĒÖt think Comcast have any such plans and we have Verizon FiOS already.
12/5/2012 | 3:39:23 AM
re: Cable VOIP Gains at Telco Expense
I don't think MSO upgrades are necessary today to simply add voice, even 2 or 3 phone numbers per home. The MSO's have already spent a bundle on fiber infrastructure (bandwidth) to neighborhood nodes. And the relatively short coax drops to the homes can handle multiple VOIP, HD, VOD streams, if I remember correctly.

Off Topic --
One advanced feature Time-Warner needs is "ringmaster" or custom ring tones so a fax machine can be used without paying for an extra phone "line". THEN I'll consider bundling my services with them.

Off Topic #2 --
In my area, I notice BellSouth working on their underground fiber and ground boxes a LOT more than Time-Warner works on their pole-mounted fiber and ground boxes.
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