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Is Cable Voice Getting a Sore Throat?

Source: gigaom.com

The economic downturn, in particular the housing market slump, that has been pressuring U.S. telecom operators now seems to be extending to cable operators as well. After enjoying nearly eight quarters of solid growth, it looks like the U.S. cable telephony business is slowing down.

The proverbial canary in the coal mine sounded the alarm yesterday. ARRIS, which makes hardware for cable operators, lowered its second-quarter forecast for both profits and revenues. Management blamed maturing cable telephony deployments and a slow housing market on the reduced demand for cable telephony services.

I think both are valid points. First, cable voice has become pervasive. You can now call your cable operator and get a fixed line connection without worrying if they actually offer voice service in your market. (Whether you’re happy with them, however, is a different story altogether.) So it’s hardly a surprise that the demand for equipment would slow down.

As we’ve previously noted, cable VoIP has been on a tear. At the end of the first quarter, Comcast had 5.1 million customers, while Time Warner Cable had 3.17 million, followed by Cox’s 2.46 million, Cablevision’s 1.68 million and Charter’s 1.08 million. Many of these subscribers came at the expense of telephone companies. Telegeography estimated that there were about 16.3 million VoIP households at the end of the first quarter of this year.

The cable companies benefited from the previous surge in new housing starts, which led to spectacular growth in their broadband and voice telephony businesses and in turn, made it easier for people to switch away from telephone companies. A slowdown in this business is only natural. In fact, I wouldn’t be surprised if large cable companies saw a sharp slowdown in broadband growth as well.

The real question is, just how big will the slowdown be? With the second-quarter earnings season just getting underway, it won’t take long to find out.

Published on July 9th, 2008 under , , , , , , , ,

Time Warner VoIP, “Digital OnePrice”

Source: snapvoip.blogspot.com

Time Warner Cable has started to deploy a VoIP plan in certain markets called "Digital OnePrice", a flat-rate pricing plan for its customers. The service offers 3,000 minutes per month of international calling to 100 countries for $19.95 more a month if you bundle the plan with TV, broadband and VoIP service, TWC’s triple play.

Q:What countries are included in the International OnePrice calling plan?
A:More than 100 countries are included in the International OnePrice calling plan. For a complete list of countries click here.

Q:Can I make calls to cell phones via the International OnePrice calling plan?
A:Calls to cell phones in Anguilla, Antigua, Bahamas, Barbados, Bermuda, British Virgin Islands, Canada, China, Hong Kong, India, Macau, Paraguay, St. Kitts, Thailand and Trinidad and Tabago are included. Calls to cell phones in all other countries will be charged at a per-minute rate.

The plan was launched this week in San Antonio and New York, but should make its way to other markets shortly, according to a Time Warner Cable spokesman.

Published on August 28th, 2007 under , , , , ,

Is bundling the secret to winning in VoIP?

Source: snapvoip.blogspot.com

With the demise of likes of SunRocket and the trouble the companies like Vonage is in because they are single service providers? But the current industry leader ComCast with it’s Digital Voice is continuing to add users to its network. Time warner Cable is not far behind and is adding users at a good rate.
Chloe Albanesius of ZifDavis has done a good job of getting the numbers together and presenting them in a understandable fashion.

Published on August 3rd, 2007 under , , , , ,

Get VoIP with a cordless phone from Sunrocket

Source: snapvoip.blogspot.com

VoIP IP Telephony @ http://snapvoip.blogspot.com

GigaOm’s Paul Kapustka reports and asks the question; "Will a low-cost cordless phone finally convince you to pull the plug on the PSTN?"
and answers the same with ample data;
"That’s what SunRocket and ATS hope with their scheduled announcement Tuesday of a cordless, multi-handset VoIP phone that will be available for as little as $19.99 after a rebate."

But I found this graph of VoIP provider client distribution by telegeography interesting.

You can read Pull the plug on PSTN here

Published on March 6th, 2007 under , , , ,

FCC removes VoIP blockade on rural service providers

Source: voipcentral.org

fcc_28Reasserting its early stand towards rural connectivity, the Federal Communications Commission (FCC) has ruled that local carriers should not be bared from connecting VoIP calls.

In its 16-page ruling on Time Warner Cable suit, FCC said that incumbent local exchange carriers must connect Web-based phone calls routed over broadband lines operated by wholesalers like Sprint Nextel and Verizon Communications.

Last year, Time Warner Cable filed a case in the FCC against the Nebraska and South Carolina regulators, who tried to bar Verizon-Time Warner duo providing VoIP services to local landlines.

Kevin J. Martin, FCC chairman said in a statement,

By increasing competition in the telephone sector, this action encourages the deployment of broadband facilities and ensures that consumers in all areas of the country reap the benefits of competition in the form of lower prices, innovative services and more choice,.

FCC hopes the ruling will pave the way for rural connectivity and speed up adoption of VoIP technology in the rural areas of USA.

Published on March 3rd, 2007 under , , ,

Vonage produces another discouraging Q results

Source: voipcentral.org

Vonage has failed to produce impressive figures in the fourth quarter results of 2006. The VoIP Company could not sign up a substantial number of customers and conceded heavy loss despite aggressive marketing strategy during the last quarter.

The company has registered just 166,267 subscribers in the Q4 taking total subscribers base to more than 2.2 million. However, the figure is not satisfactory. It is less than 204,591 subscribers in Q3 of 2006. Vonage gained 207,252 new subscribers during the fourth quarter of 2005.

It is clear that the popularity of Cable players like Comcast, Time Warner who are bundling VoIP with other services such as broadband Internet access and TV has reduced Vonages subscribers growth considerably.

The company posted net loss of $65 million or $0.42 per share during the last quarter to end year 2006 with a massive loss of $286 million. While, the net loss during 2005 was $261 million.

Published on February 16th, 2007 under , , ,

VOIP Service providers ranked

Source: snapvoip.blogspot.com

ISP planets Alex Goldman has released a ranked list of VOIP providers based of subscribers for 3rd quarter 2006. From the list, It seems mostly Cable companies are beating the rest of the providers, except Vonage, Skype, and Sunrocket. This is from a list of 12 providers whose data is publicly available. The report also mentions that many providers are left out due to unavailability of data.
Here are the first five from the list; follow the link below to get the rest and read the report.

1 Vonage 2,000 [as of September 30, 2006]
2 Skype 1,800 (paid VoIP only, worldwide, date of this number unknown)
3 Time Warner Digital Phone* 1,649 [November 1, 2006]
4 Comcast Digital Phone* 1,348 [October 26, 2006]
5 CableVision 1,101 [November 8, 2006]

ISP Planet have done this ranking since 2004. The history of ranking is also available.

Links;
VOIP Service providers ranked
VOIP ranking History

Published on December 28th, 2006 under , , , , , , , , , , ,

Time Warner to invest USD 214.65 million in U.K. LLU

Source: voipcentral.org

Time Warner will invest 120 million pounds ($214.65 million) in its British ISP, AOL UK, in Local Loop Unbundling (LLU). Ofcom’s recent mandates on LLU and the Strategic Review of Telecommunications has provided AOL with an opportunity to bring large-scale competition into UK’s national telephone network and also catch up with other European countries.

AOL’s unbundled services will be ADSL2+ compatible that will create the potential for 8+ mbps.

The first phase will take place in the first half of 2006 that will involve installing DSLAMs in 300 of BT’s exchanges reaching 20 percent of UK households at a cost of 50 million. This roll out will be extended to up to 1,000 exchanges reaching 50 percent of UK households at an additional investment of 70 million if it turns out to be successful.

AOL U.K. has more than 1.1 million broadband subscribers as of November 2005.

Read the AOL press release

Published on January 25th, 2006 under , , ,

Internet Phone subscriptions on rise

Source: voipcentral.org

The report brought out by US based research firm by TeleGeography states a remarkable increase in the number of Internet Phone Subscriptions in the third quarter of 2005. There is 33% increase in comparison to the second quarter.
The number happens to be quite small as compared to residential phone lines. As per the given estimates the number of VoIP users has risen as compared to the third quarter of 2004.

The growth in the VoIP telephony is expected to result in the shrinkage of the traditional telephony. As it is major conventional telephone companies are experiencing the poaching from VoIP telephony. The traditional phone companies such as Verizon and SBC are setting up optical networks to offer internet and video services.
The growth in the VOIP segment has also been attributed to the success of Time Warner Cable that happens to be the largest cable VOIP provider.
Moreover the services happen to quite cheap so more and more consumers are making a shift.
It needs to seen how the things will shape up.
For more read-

Published on November 15th, 2005 under ,

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