Research finds VoIP driving cable telephony subscriber growth

April 26, 2007 -- In separate studies, the In-Stat and Research and Markets (Dublin, Ireland) report that the technology is fast becoming a key market enabler for cable telephony services and subscriber growth.

April 26, 2007 -- In separate studies, the technology market research firms In-Stat and Research and Markets (Dublin, Ireland) have reported that Voice-over-Internet Protocol (VoIP) technology is fast becoming a key market enabler for cable telephony services and subscriber growth.

In its recent study, "The Worldwide Market for Cable Telephony Services," In-Stat reports that Voice-over-Internet Protocol (VoIP) technology has proven to be the key market enabler for cable telephony services and subscriber growth.

According to the firm's research, generally less expensive to provision than more traditional circuit-switched telephony, the increasing availability of VoIP services in North America was directly responsible for an almost two-fold increase in the number of North American subscribers during 2006.

"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," says Mike Paxton, an In-Stat analyst. "This has led to increasing service availability in North America, Europe, and in a few countries in Asia."

The firm's research also found the following:

-- Worldwide cable telephony subscribers increased to over 22 million in 2006, up sharply from 15.8 million in 2005.

-- Cable telephony service revenues are also growing at a rapid pace and are projected to reach $10.4 billion in 2007, up from $7.9 billion in 2006. North America will account for two-thirds of the worldwide service revenues in 2007.

-- In a few countries, the number of VoIP-based cable telephony subscribers has already exceeded the number of circuit-switched cable telephony subscribers. One of these countries is the US, where there are over 6.6 million VoIP subscribers and just 2.8 million circuit-switched subscribers.

Cable telephony's growth spurt in the US market has been a relatively recent phenomenon, says In-Stat. According to a US consumer survey, forty-two percent of all US cable telephony subscribers signed up for the service during the past 12 months.

The In-Stat report covers the market for cable telephony services around the world. The study analyzes the business case for provisioning cable telephony services, looks at the availability of the service, and breaks down cable telephony's cost structure by specific network architecture.

In addition, the report updates cable TV operator telephony service strategies and presents the results of a US cable telephony subscriber consumer survey. It also provides forecasts for worldwide cable telephony subscribers, cable telephony service revenues, VoIP-enabled cable telephony subscribers, and cable telephony installed lines through 2011.

In a separate study, Research and Markets (Dublin, Ireland) also finds that VoIP technology has proven to be a key market enabler for cable telephony services and subscriber growth.

According to the European firm, the market for cable telephony services is maturing and worldwide subscriber numbers are growing rapidly. In many markets around the world, cable TV operators consider telephony service to be an integral part of their telecommunications service bundle. This has led to increasing service availability in North America, Europe, and in a few countries in Asia.

The firm states that, generally less expensive to provision than more traditional circuit-switched telephony, the increasing availability of VoIP services in North America was directly responsible for the almost two-fold increase in the number of North American subscribers during 2006.

The Research and Markets report, "The Worldwide Market for Cable Telephony Services," covers the market for cable telephony services around the world. The study discusses the business case for provisioning cable telephony services, looks at the availability of the service, and breaks down cable telephony's cost structure by specific network architecture.

In addition, the report updates leading cable TV operator telephony service strategies and presents the results of a US cable telephony subscriber consumer survey that was conducted in December 2006. The report also provides forecasts for worldwide cable telephony subscribers, VoIP cable telephony subscribers, and installed cable telephony lines through the year 2011.


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