NCTA Predicts Big Cable VOIP Savings

Cable operators could save American consumers more than $60 billion on their phone bills over the next five years if they switch to cable VOIP service, according to the National Cable & Telecommunications Association (NCTA).

In a speech last week, NCTA President Kyle McSlarrow said a recent J.D. Power study found that the average cable VOIP subscriber is spending $11.19 less per month on phone service than the average traditional phone customer. Conducted in July, the survey found that cable VOIP customers pay about $42.40 per month while traditional phone customers spend about $53.59 a month on local and long-distance service. Assuming that the cost difference remained the same and 100 million homes signed up for cable VOIP in five years, McSlarrow said, the consumer savings could scale $60 billion.

Speaking at the annual Mid-America Cable Show in Kansas City, McSlarrow said NCTA will press Congress to guarantee "meaningful interconnection rights" for cable telephony providers. He complained that phone companies have tried to block cable interconnection rights in some markets through various regulatory ruses.

-- Alan Breznick, Site Editor, Cable Digital News