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April 23, 2007

In-Stat Reveals VoIP as Key Enable for Cable Telephony Growth

Voice-over-Internet Protocol, otherwise known as VoIP, has made tremendous waves throughout the telecommunications industry, as well as a multitude of other industries that have found the technology to be beneficial for the enterprise. Now, according to In-Stat (News - Alert), it is also the reason for growth.

Research by In-Stat has revealed that VoIP technology has proven to be the key market enabler for cable telephony services and subscriber growth. In addition to typically being less expensive to provision than more traditional circuit-switched telephony, the increasing availability of VoIP services in North America is 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, In-Stat analyst, in a Monday statement. "This has led to increasing service availability in North America, Europe, and in a few countries in Asia."
In-Stat found that worldwide cable telephony subscribers increased to over 22 million in 2006, up sharply from 15.8 million in 2005. Revenues have also shown tremendous growth for cable telephony service provides. The rapid revenue growth is projected to reach $10.4 billion in 2007, up from $7.9 billion in 2006. North America is expected to account for two-thirds of the worldwide service revenues in 2007.
A few countries have already seen the number of VoIP-based cable telephony subscribers exceed the number of circuit-switched cable telephony subscribers. One of these countries is the United States, where there are over 6.6 million VoIP subscribers and just 2.8 million circuit-based subscribers.
The growth spurt for cable telephony in the US market has been a relatively recent phenomenon. Based on a US consumer survey, 42 percent of all US cable telephony subscribers signed up for the services during the past 12 months.
In-Stats research, “The Worldwide Market for Cable Telephony Services” analyzes the business case for provisioning cable telephony services, looks at the availability of the services and breaks down cable telephony’s cost structure by specific network architecture. The research also updates cable TV operator telephony service strategies and presents the results of a US cable telephony subscriber consumer survey.
The report provides forecasts for worldwide cable telephony subscribers, cable telephony service revenues, VoIP-enabled cable telephony subscribers, and cable telephony installed lines through 2011.

Such growth in the cable telephony services industry gives strong indication that consumers aren’t as concerned about quality and security as other research would indicate. While these can both be an issue for any technology, they can certainly stunt growth for new technology. VoIP seems to be past that battle.

Want to learn more about VoIP? Then be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. The papers are authored by industry leaders, who, in turn, receive qualified sales leads from interested parties. Check here for the latest in CRM information.
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for To see more of her articles, please visit Susan J. Campbell’s columnist page.


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