Cogeco to work with Telus, Cisco on consumer VoIP
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World Markets Analysis
February 22, 2005
Canadian cable operator Cogeco has announced that Telus and Cisco Systems will support its foray into the residential VoIP market later in 2005. Cisco will provide IP softswitches and voice gateways, and Telus interconnectivity with the PSTN and long-distance routing.
Significance: Like cable peers such as Rogers, Shaw and Videotron, Cogeco is seeking to compete directly with fixed-line incumbents in the voice sphere, and across the range of triple-play (voice, broadband internet and video) services.
Regional incumbents currently dominate this sector, controlling some 76.4% of long-distance residential revenues and 98.1% of local residential revenues in 2003. The voice market is therefore ripe for competition and cable operators will experience some success in upselling VoIP services to their current broadband Internet and video customers.
This has been the case in the U.S. market, where cable operators Cablevision, Charter and Time Warner Cable have experienced rapid uptake in VoIP subscriptions.