Cable Telephony Subs To Hit 6.5M In 2005

Staff On Dec 17 2001 - 8:00am

Cable telephony's growth will likely continue, reaching a forecast subscriber base of 6.5 million by 2005 from a current 1.3 million, primarily served by IP technology, says Probe Research.

The current 1.3 million cable telephony subscribers, who use the HFC telephone standard, represent the equivalent of the eighth largest telco, said Probe VP Lynda Starr.

Although the investment for adding voice subscribers is high, cable operators believe offering the service brings greater customer loyalty, she said. "The market for cable television is saturated, so the provider's goal is to increase revenue per subscriber," she said.

Although most operators are waiting for IP telephony standards to emerge, key cable operators such as AT&T and Cox are actively moving forward with HFC-based telephony. Both companies report reduced marketing costs and lower customer loss when a package including voice, video and data services is sold, she said.

Probe Research provides strategic analysis in the telecom, IP and wireless industries.