IP Cable-Telephony Market to Reach $6.5B

Fri, 08/31/2001 - 8:00pm

Although its rollout has taken longer than expected, the worldwide IP cable-telephony market is expected to increase from $1 billion in revenue in 2000 to more than $6.5 billion in 2005, according to a report released by Cahners In-Stat Group.

The study, titled "Waiting for IP: Cable Telephony on Hold," also found that worldwide cable-telephony subscribers were expected to climb from 2.8 million at the end of 2000 to more than 15 million by 2005, with the majority of subscribers residing in North America and Western Europe. IP cable-telephony subscribers will reach 5 million in 2005, the study found.

Even though the technology standards and certification processes are in place, In-Stat said no deployment of IP-based cable telephony would occur until late 2002 to early 2003. Until then, cable operators that offer telephone service will continue to rely on circuit-switched technology, the company said.

Transforming a one-dimensional business into a multitransactional operation can be a major challenge for cable operators, says Mike Paxton, senior analyst with In-Stat's Converging Markets & Technologies group.

In-Stat has also found that:

  • Consumers signing up for cable-telephony service are influenced by three main factors: discontent with their local exchange carriers, attractive price discounts on primary and additional telephone lines, and compelling service bundles that can include cable telephony, high-speed Internet service and digital cable-TV service.
  • In North America, there will be nearly 1.7 million subscribers by the end of 2001. Outside of North America, the United Kingdom has the greatest number of cable-telephony subscribers, followed by Australia and the Netherlands.

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