Navi Mumbai, Maharashtra India (PressExposure) January 17, 2008 -- Cable companies have been on a fast track, upgrading their networks to provide integrated digital video, high-speed data and voice services-which means incumbent telcos now face stiff competition from cable operators aiming to supply residential and small business customers with a bundled services. With competitors like Cox Communications, CableVision, Comcast, Charter, Time-Warner, and other top-tier cable operators launching telephone services to residential and small business, the ILECs face a situation comparable to what AT&T faced in the years just after Divestiture.
In this report, Insight Research analyzes the telephony and enhanced services that cable providers currently offer residential customers using four delivery options: standard telephony, channelized HFC, dedicated modem and shared modem service. Based on this examination, Insight quantifies the addressable market opportunity for cable companies in two-way capable cable markets, and measures the competitive risk they pose to the incumbent telephone carriers located within the cable systems' service areas.
The residential telephone market battle between incumbent local exchange carriers (ILECs) and the cable television multiple system operators (MSOs) has accelerated in the last year, entering a highly competitive phase. Cable-based telephone service is being deployed on a much broader basis than ever before due to network and equipment upgrades which support telephony.
Providing telephone services, especially a voice over the Internet (VoIP) capability, has become the next logical step for cable MSOs after they successfully created a mass market for their residential high-speed access cable modem services. Every one of the MSOs in this study is offering residential telephone service.
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