Report on Subscriber Growth for Cable Telephony

Feb 16, 2006 | Inside: Exploring Frontlines

A recent report by Research and Markets has predicted the number for VoIP cable telephone subscribers in households to reach 7 million by the end of 2006. The following is a summary from this report:

Worldwide cable telephony service revenues rose from $4.5 billion in 2004 to $5.6 billion in 2005, and are projected to reach $10 billion by 2009. The widening availability of VoIP-based cable telephony services has resulted in thousands of new cable telephony subscribers for operators like Time Warner Cable and Cablevision in the United States, Videotron and Shaw Communications in Canada, and Liberty Global in Europe. The high-tech market research firm also notes that VoIP is increasingly becoming the technology of choice for cable operators.

The key attraction for cable operators is the cost advantage that VoIP offers in comparison with circuit-switched service. Based on our analysis, it costs between 17% and 25% less to provision a VoIP cable telephony subscriber than a traditional circuit-switched cable telephony subscriber.

This recent report found the following:

• VoIP-based cable telephony is having a big impact in the U.S. Fuelled by Comcast, Time Warner Cable, and Cablevision, the author projects that US cable telephony subscriber households will reach 4.4 million by the end of 2006.
• Total worldwide VoIP cable telephony subscriber households are expected to reach almost 7 million by year-end 2006.
• US cable operators are beginning to look beyond wired cable telephony services to the wireless world. In November 2005, several leading cable operators announced an agreement with Sprint Nextel to develop a wireless telephony option for cable TV subscribers.

This Market report covers the market for cable telephony services around the world. It discusses the business case for provisioning cable telephony services, looks closely at the transition from circuit-switched services to VoIP, and breaks down cable telephony’s cost structure by specific network architecture. It also provides forecasts for worldwide subscribers, VoIP subscribers, and installed cable telephony lines through 2009 and forecasts service revenues and “Voice-over-Broadband” subscribers over the next five years.

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