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Study: Cable telephony exceeding expectations

Thu, 05/16/2002 - 8:00pm
Jeff Baumgartner

Although the IP cable telephony sector has yet to muster more than a few field trials, the deployment of traditional circuit-switched voice services over cable networks exceeded expectations in 2001 and is expected to continue that momentum through the end of this year, predicts a new study from Allied Business Intelligence.

Pointing to deployments from MSOs such as AT&T Broadband, Cox Communications, UnitedGlobalCom's UPC division and Japan's Jupiter Communications, ABI said it expects an even better 2002. Specifically, the research firm predicted there will be 5.21 million cable telephone subscribers by the end of this year, versus 2.93 million in 2001. Cable telephony revenue will also increase to $2.11 billion by the end of 2002, ABI forecasted.

"The fundamental values of cable telephony are apparent. Cable operators can now offer a bundled package of voice, data, and video, which significantly lowers churn rate, while increasing their revenue per subscriber," said ABI Senior Analyst John Chang, who wrote the report.

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