Technology | Media | Telecommunications

Thursday, August 28, 2008

Cable Telephone Service Trending Upward

Wireline phone service subscriptions continue to decline, but there's one exception to the downward spiral. Cable telephony subscriber growth continues to be strong, with almost 8 million new subscribers added around the world over the past 12 months, according to a market study by In-Stat.

Growth in North America has been particularly strong, as cable operators near the end of their transition to voice-over-Internet protocol (VoIP) enabled network architectures, the high-tech market research firm says.

"Current priorities for cable telephony service providers are expanding the availability of their service and attracting business end-users, especially small and medium-sized businesses," says Mike Paxton, In-Stat analyst.

Their research covers the worldwide market for cable telephony. It discusses the business case for cable telephony services, the availability of the service, and examines specific network architectures. In addition, it updates leading cable TV operator telephony deployment strategies and presents the results of a U.S. cable telephony subscriber consumer survey.

I believe that telco executives must ask themselves, do they have the most appropriate talent leading their legacy service marketing organizations? The notion that an old-school custodian marketer is "good enough" seems totally defeatist to me.

Why not bring in fresh open-minded talent that's willing to experiment with a strategy to reinvigorate the wireline service offerings, and pro-actively attempt to curtail the decline? Why settle for anything less in your core business?

In-Stat's market study found the following:

- Worldwide cable telephony service revenues are on track to reach $12.6 billion in 2008, up from $10.7 billion in 2007.

- Total worldwide cable telephony subscribers are projected to reach 37 million by the end of 2008, and rise to over 64 million by 2012.

- In the U.S., questions remain about whether or not the cable service bundle needs to have a wireless voice component. While wireless service is an integral part of the service bundle in countries like Canada and the United Kingdom, the collapse of the "Pivot" joint venture has put wireless service on the back burner for most U.S. cable operators.