Cablevision Results Highlight IP Phone Bundling Benefits

Cablevision Systems Corp. demonstrated the pull-through power of IP telephony on its cable service bundle in the second quarter. Cablevision added 113,877 IP phone customers in Q2, bringing its total to 478,357 as of June 30, equal to 10.7% of homes marketed. Cablevision's Q2 IP phone installation pace climbed 24.1% over its Q1 run rate. More importantly, Cablevision's phone offering fueled healthy gains in video and high-speed data services too. Cablevision added 20,000 basic cable TV customers in Q2, a sharp contrast to the subscriber losses seen by most other MSOs. And Q2 high-speed data additions climbed 58% over the same period a year ago to 79,285, bringing Cablevision's total to 1.5 million. The 'halo effect' of VoIP was also seen at Time Warner Cable in Q2, where the MSO's high-speed data adds also climbed 58% from the same period last year to 201,000, bringing its total to 4.3 million as of June 30 Time Warner Cable added 242,000 IP phone customers in Q2 to bring its total to 614,000. Comcast, by comparison, which is still in the IP phone slow lane, saw its Q2 high-speed data subscriber additions fall 9% from last year to 297,000 and the MSO lost 77,000 basic cable TV customers.
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