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Vonage Customer Review: One month with Vonage, and...
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In-Stat Says Cable Telephony Is An Integral Part Of "Triple Play" Bundle


Vonage In Print News

In-Stat Says Cable Telephony Is An Integral Part Of "Triple Play" Bundle

November 26, 2003

By Staff

Cable telephony services continue to proliferate as cable TV operators expand their video, data, and voice service portfolios, reports In-Stat/MDR. According to the high-tech market research firm, worldwide cable telephony subscribers are on track to top the 10 million mark by the end of 2003, and are forecasted to rise to over 19 million in 2007. In addition to the growing number of users around the world, recent announcements marking the first US-based cable telephony service deployments using Voice over Internet Protocol (VoIP) technology, have made this year an important one for voice services in the cable industry.

Today's market for cable telephony services continues to be strongly influenced by consumer discontent with incumbent telephone service providers, in addition to the fact that most circuit-switched cable telephony is less expensive than the service offered by the local phone company. However, In-Stat/MDR cites that the most powerful market driver for cable telephony today is the bundling of telephony service with existing digital video and high-speed data services, something that has proven to be very attractive to today's cable TV subscribers.

"The cable TV service bundle has played an important role in the growth of cable telephony," says Mike Paxton, a Senior Analyst with In-Stat/MDR. "At the same time, significant challenges remain as cable operators attempt to further scale their voice services across their networks." These challenges include allocating sufficient capital to expand the service in an atmosphere of reduced investment, and marketing cable telephony service beyond residential users to the business community.

In-Stat/MDR has also found that:

Europe continues to account for the lion's share of cable telephony subscribers. As of late 2003, there were approximately 5.9 million cable telephony subscribers in Europe, in comparison to 2.7 million in the US.

Worldwide revenues from cable telephony service are projected to hit $3.7 billion in 2003, and rise to over $6 billion in 2007.

"Voice over Broadband" VoIP-based telephony services will play a small, but important, role in North American cable telephony services. These services, offered by companies like Vonage and Net2Phone, allow smaller cable operators to provide telephony services without large infrastructure investments.



 
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1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

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HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

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