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Cox Chief Doesn't See Lower Prices

Alan Breznick
6/28/2006

Despite the recent entry of AT&T and Verizon Communications into the pay TV market, Cox Communications President Patrick Esser doesn't see cable prices coming down.

In an exclusive video interview with Light Reading News Editor Phil Harvey, Esser rejects the widely held notion that telco TV competition will prompt cable operators to cut their monthly service bills. Noting that cable has faced competition in the video market since DirecTV launched satellite TV service more than a decade ago, he argues that MSO pricing derives more from "the cost of video" and the cable infrastructure than from anything else.

Esser also predicts that the cable wireless consortium of Cox, Comcast, Time Warner Cable, Advance/Newhouse Communications, and Sprint Nextel will introduce its first mobile products "before the holiday season." While the first products may be voice-focused, he says, the venture's "true vision" is to make all of cable's products more mobile, including data and video.

In addition, Esser says Cox will enter the emerging home media center business, supporting networked video and voice services as well as data services. Plus, he projects that commercial services will generate more than $1 billion in revenues for the MSO by the end of 2010.

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