Cable Telephony Service Revenues to Hit $10 Billion by 2009

In-Stat : 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. 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.

• VoIP-based cable telephony is having a big impact in the U.S. Fueled by Comcast, Time Warner Cable, and Cablevision, In-Stat 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.

Cable Telephony Service: VoIP Drives Subscriber Growth Publ 20060208