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In-Stat Reports Cable Telephony Service Revenues to Hit $10 Billion By 2009

Posted on: Wednesday, 8 February 2006, 09:00 CST

Worldwide cable telephony service revenues rose from $4.5 billion in 2004 to $5.6 billion in 2005, and are projected to reach $10 billion by 2009, reports In-Stat (http://www.in-stat.com). The widening availability of VoIP-based cable telephony services has resulted in thousands of new cable telephony subscribers for operators like Time Warner Cable and Cablevision in the United States, Videotron and Shaw Communications in Canada, and Liberty Global in Europe. The high-tech market research firm also notes that VoIP is increasingly becoming the technology of choice for cable operators.

"The key attraction for cable operators is the cost advantage that VoIP offers in comparison with circuit-switched service," said Michael Paxton, In-Stat analyst. "Based on our analysis, it costs between 17% and 25% less to provision a VoIP cable telephony subscriber than a traditional circuit-switched cable telephony subscriber."

A recent report by In-Stat found the following:

-- VoIP-based cable telephony is having a big impact in the United States. Fueled by Comcast, Time Warner Cable, and Cablevision, In-Stat projects that U.S. cable telephony subscriber households will reach 4.4 million by the end of 2006.

-- Total worldwide VoIP cable telephony subscriber households are expected to reach almost 7 million by year-end 2006.

-- U.S. cable operators are beginning to look beyond wired cable telephony services to the wireless world. In November 2005, several leading cable operators announced an agreement with Sprint Nextel to develop a wireless telephony option for cable TV subscribers.

The report, "Cable Telephony Service: VoIP Drives Subscriber Growth" (#IN0502142MB), covers the market for cable telephony services around the world. It discusses the business case for provisioning cable telephony services, looks closely at the transition from circuit-switched services to VoIP, and breaks down cable telephony's cost structure by specific network architecture. It also provides forecasts for worldwide subscribers, VoIP subscribers, and installed cable telephony lines through 2009, and forecasts service revenues and "Voice-over-Broadband" subscribers over the next five years.

For more information on this report, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=288 or contact Erin McKeighan at 480-609-4551 or emckeighan@reedbusiness.com. The report price is $2,495.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, market analysis and forecasts of advanced communications services, infrastructure, end-user devices and semiconductors. Our insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.

Source: Business Wire

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