Wednesday, December 28, 2011

A Look at Cable and VoIP

David Byrd, VP of Marketing at Broadvox, recently wrote that he has seen marked improvement in business cable bandwidth, including from Cablevision. Mark that: Business cable.

This will likely result in more Type II access going to cable instead of ILEC's and more people trying out BYOB VoIP (over the top VoIP). I would caution that cablecos are just as ruthless to CLEC's and ISP's as ILEC's.

"Cable's VoIP growth engine is sputtering," according to Fierce. "Comcast has the most VoIP lines among cable TV players, with almost 9.3 million VoIP lines in service as of the end of the third quarter. That figure puts its penetration rate for VoIP at about 17.6 percent, up from about 16.1 percent a year earlier." Charter has about 16% penetration with 5.3 million VoIP lines. The real kicker was this stat: "Time Warner Cable, which has 4.6 million voice customers, added only 5,000 new VoIP lines overall in the third quarter this year, with business market growth of 13,000 lines covering for the loss of 5,000 residential line losses." One has to wonder if it is job losses and business closings that have slowed Cable VoIP growth. Some of this has to be due wireless replacement.

ILEC's have been seeing wireline loss for a few years now. "As of Q3 2011, AT&T lost 10.5% of its wireline connection from the year-earlier period, Verizon lost 7.6% of its total wired voice lines, and CenturyLink reported losses that would total about 6.8% annually," according to Network World. In fact, WIND and CenturyLink have made acquisitions to offset wireline losses with Cloud and Business Services. What are your plans to counter-balance wireline and voice revenue declines?

The difference between success and failure is just inches. You might be right there, a few millimeters off, let me help you get there. Call 813-963-5884 today.

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