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Cox touts telephony, service bundling strategy

Wed, 06/04/2003 - 8:00pm
Jeff Baumgartner

Cox Communications offered more evidence this week that its strategy to offer telephony and bundle broadband services is paying dividends.

Cox, which ended the first quarter with 782,546 telephony subs, said 77 percent of those customers selected the MSO's long distance service over those from other providers. Cox also noted that 47 percent of its telephony subs also purchased a full bundle of voice, video and data services from the company.

Telephony and service bundling are also helping the MSO lower churn rates. According to Cox figures, customer churn among two-product video subs is 25 percent lower than those who only take video service. Churn is further reduced (53 percent lower) among customers who take three products, Cox said.

Although Cox is exploring the virtues of IP telephony, the company said it will continue to use traditional constant bit rate technology as it expands service to more areas.

In addition to expanding its telephony footprint in Kansas this year, Cox will also leverage its existing circuit switch in Phoenix, Ariz. to offer cable telephony to customers in nearby Tucson.

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