India Broadband

Admin · 01-05-2006

Cable VoIP
After dithering for years about delivering voice services, cable operators are now aggressively moving forward. According to In-Stat/MDR, with the coming of age of Voice over IP (VoIP) services, cable providers feel they can offer a service that fetches them a better deal compared to traditional telephony services. Cable companies have been closely observing VoIP’s evolution and examining how it could enhance their business. VoIP enables these players to provide a wide range of value added services such as unifying messaging, video calling and Web conferencing.
Another attractive feature is that the cable companies can provide these services over their cable modem networks. This capability helps them exploit their networks and makes the service more economical than it is from traditional providers. Instead of providing independent video, Internet access and telephony services, cable companies want to provide these services as bundled package to consumers. This helps them to offer the services at lower prices and thus attract more customers. One other advantage with bundling of services is that the users are less likely to switch operators. Churn being a major problem for companies, this could provide some relief to the beleaguered companies, according to Current Analysis Inc.
Companies such as Comcast, Time Warner Cable, Charter Communications and Cox Communications in the US have made plans for their VoIP initiatives. Comcast and Charter Communications are using Sprint and Level 3 to support their long-distance and PSTN network access. Time Warner is using Sprint and MCI to support its voice offerings and to provide directory assistance, voicemail and operator services.
In the preparation for providing VoIP services, the cable companies had to deal with a number of technological challenges. Quality of calls is an issue on VoIP networks. When information is transmitted over the Internet, it is tough for the voice service providers to ensure that the data moves from the sender to the receiver in a timely manner. Hence, cable companies have designed their voice services such that they travel over the cable vendor’s private data networks, which ensures the control required to provide high voice-call quality.
The cable companies pose a reasonable threat to telecom companies. In high-speed data market, cable modem sales have overtaken DSL installation by almost two to one. But, telecom companies have their own strengths. They have greater experience with voice systems and sometimes, cable companies can’t provide the same level of flexibility as telecom companies do. Wireless services have become quite popular among businesses and consumers. Many telecom companies have wireless operations and are able to offer bundled services that cable companies cannot match at present. It is not clear whether telecom or cable companies will win the voice services battle. But, cable companies are moving assertively into the arena.

01-05-2006	#1
Admin Join Date: Jan 2006 Location: New Delhi Age: 31 Posts: 3,002 Rep Power: 10	Cable VoIP Cable VoIP After dithering for years about delivering voice services, cable operators are now aggressively moving forward. According to In-Stat/MDR, with the coming of age of Voice over IP (VoIP) services, cable providers feel they can offer a service that fetches them a better deal compared to traditional telephony services. Cable companies have been closely observing VoIP’s evolution and examining how it could enhance their business. VoIP enables these players to provide a wide range of value added services such as unifying messaging, video calling and Web conferencing. Another attractive feature is that the cable companies can provide these services over their cable modem networks. This capability helps them exploit their networks and makes the service more economical than it is from traditional providers. Instead of providing independent video, Internet access and telephony services, cable companies want to provide these services as bundled package to consumers. This helps them to offer the services at lower prices and thus attract more customers. One other advantage with bundling of services is that the users are less likely to switch operators. Churn being a major problem for companies, this could provide some relief to the beleaguered companies, according to Current Analysis Inc. Companies such as Comcast, Time Warner Cable, Charter Communications and Cox Communications in the US have made plans for their VoIP initiatives. Comcast and Charter Communications are using Sprint and Level 3 to support their long-distance and PSTN network access. Time Warner is using Sprint and MCI to support its voice offerings and to provide directory assistance, voicemail and operator services. In the preparation for providing VoIP services, the cable companies had to deal with a number of technological challenges. Quality of calls is an issue on VoIP networks. When information is transmitted over the Internet, it is tough for the voice service providers to ensure that the data moves from the sender to the receiver in a timely manner. Hence, cable companies have designed their voice services such that they travel over the cable vendor’s private data networks, which ensures the control required to provide high voice-call quality. The cable companies pose a reasonable threat to telecom companies. In high-speed data market, cable modem sales have overtaken DSL installation by almost two to one. But, telecom companies have their own strengths. They have greater experience with voice systems and sometimes, cable companies can’t provide the same level of flexibility as telecom companies do. Wireless services have become quite popular among businesses and consumers. Many telecom companies have wireless operations and are able to offer bundled services that cable companies cannot match at present. It is not clear whether telecom or cable companies will win the voice services battle. But, cable companies are moving assertively into the arena.

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