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Cable Telephony Service Global Revenues

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.

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," says Michael Paxton, In-Stat analyst. "Based on our analysis, it costs between 17 percent and 25 percent less to provision a VoIP cable telephony subscriber than a traditional circuit-switched cable telephony subscriber."

In-Stat found the following:

- VoIP-based cable telephony is having a big impact in the U.S. Fueled by Comcast, Time Warner Cable, and Cablevision, In-Stat projects that US 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.
- US 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.

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