Monday, March 05, 2007

Cable is Eating Bell Lunch

Om [@ GigaOM] talks about how Bells can't roll out video fast enough to stave off the voice losses. "The total cable & VoIP competition represents nearly 10% of the U.S. households." 10% of the billions in revenue is actually real money :) And the profits on voice are higher than on TV. Roll-out costs for TV are HUGE. Customer acquisition costs are BIG for TV - a static market. And let's not forget that with voice losses usually comes DSL (Internet access) losses because cable takes both.

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