VoIP Pure Plays Should Be Worried About Cable Providers

May 3, 2007 by Garrett Smith
Cable VoIP Subscribers Nearly Doubled in 2006

Russell Shaw points us to an In-Stat study that shows cable providers nearly doubled the number of telephone subscribers. I for one, do not see this trend slowing anytime soon. According to the study, of the 9.4 million cable telphone subscribers in North America, 6.6 million are VoIP, that is an alarmingly high adoption rate, especially if you’re a residential VoIP pure play offering service through VoIP adapters.

According to Mike Paxon, In-Stat analyst, “In a growing number of markets around the world, cable TV operators consider telephony service to be an integral part of their telecommunications service bundle.” That means the triple and quadruple “plays” will continue to be heavily pushed and marketed to an existing customer base, and potential customers. With a “communications monopoly” the cable providers will be able to offer outstanding pricing, and the convenience of billing consolidation, which could spell big trouble for pure play VoIP providers, who other than offering an even lower price (and smaller margins for themselves) will barely have a leg to stand on.

Could the rest of 2007, and 2008, be the period that cable kills the pure play residential VoIP provider?


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