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Cable Telephony Service VoIP Drives Subscriber Growth

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Cable Telephony Service: VoIP Drives Subscriber Growth

Description:    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. 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. Based on our analysis, it costs between 17% and 25% less to provision a
                VoIP cable telephony subscriber than a traditional circuit-switched cable telephony subscriber.

                This recent report found the following:
                -VoIP-based cable telephony is having a big impact in the U.S. Fuelled by Comcast, Time Warner
                Cable, and Cablevision, the author 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.

                This Market report covers the market for cable telephony services around the world. It discusses
                the business case for provisioning cable telephony services, looks closely at the transition from
                circuit-switched services to VoIP, and breaks down cable telephony's cost structure by specific
                network architecture. It also provides forecasts for worldwide subscribers, VoIP subscribers, and
                installed cable telephony lines through 2009 and forecasts service revenues and "Voice-over-
                Broadband" subscribers over the next five years.



Contents:       Executive Summary

                Methodology

                Cable Telephony Services

                The Market in Late 2005

                Market Drivers for Cable Telephony

                The Progression of Voice over Cable: Circuit-Switched to VoIP

                Delivering Cable Telephony: Network Architectures Converge

                The Circuit-Switched Network

                The "Switched-IP" Network Architecture

                VoIP Networks

                IP-Enabled Voice Service

                The IP Connection

                The IP Network and the PSTN

                Types of IP Telephony
VoIP In an HFC Network

IP Network Architecture

The Twisted-Pair Overlay Network

Technology Standards for VoIP-Based Cable Telephony

Cable Modem Technology Standards

DOCSIS 1.1

DOCSIS 2.0

DOCSIS 3.0

International Standards

PacketCable

PacketCable 2.0

PacketCable Multimedia

IPCablecom

Key Market Trends

VoIP Comes on Strong

Integrating Wireless Voice Into the Cable Service Bundle

Cable Telephony Costs: Circuit-Switched vs. VoIP

Cable Telephony Service Providers

North America

United States

Adelphia

Bright House Networks

Comcast

Cablevision

Charter Communications

Cox Communications

GCI

Insight Communications

RCN

Time Warner Cable

Canada
Europe

NTL

Telewest

Liberty Global

Other Operators

Rest of World (ROW)

Australia

Chile

Japan

Mexico

Voice-over-Broadband: A Viable Option for VoIP

Vonage

Net2Phone

Cable Telephony Service Forecasts

Subscriber Forecasts

Revenue Forecast

List of Tables

Table 1. Cable Telephony Market Drivers

Table 2. Telephony Service Prices in Northern Virginia: Verizon vs. Cox Communications

Table 3. The Progression of Cable Telephony Technology

Table 4. VoIP-Enabled North American Cable Telephony Subscribers

Table 5. Cable Telephony Costs: Circuit-Switched Subscriber ($ Per Line)

Table 6. Cable Telephony Costs: VoIP Subscriber, Premise Powered ($ Per Line)

Table 7. Cable Telephony Costs: VoIP Subscriber, Network Powered ($ Per Line)

Table 8. US Cable Telephony Subscriber Households by Cable Operator

Table 9. North American Cable Telephony Deployments by Operator

Table 10. Worldwide Cable Telephony Subscriber Forecast (Subscribers in Thousands)

Table 11. US Cable Telephony Subscriber Forecast (Subscribers in Thousands)

Table 12. Worldwide VoIP Cable Telephony Subscribers (Subscribers in Thousands)

Table 13. US VoIP Cable Telephony Subscribers (Subscribers in Thousands)

Table 14. Worldwide Cable-Based Voice-over-Broadband User Forecast (Users in Thousands)

Table 15. Worldwide Cable Telephony Installed Lines (Lines in Thousands)
            Table 16. Cable Telephony Penetration of Worldwide Cable TV Households (Subscribers in Millions)

            Table 17. Worldwide Cable Telephony Service Revenues (US$ in Millions)

            Table 18. US Cable Telephony Revenue Forecast (US$ in Millions)
            List of Figures

            Figure 1. The Circuit-Switched Network

            Figure 2. The Switched-IP Network

            Figure 3. The VoIP-Enabled Network

            Figure 4. Key Components of the PacketCable Network

            Figure 5. Worldwide Cable Telephony Forecast (Subscribers in Thousands)

            Figure 6. Worldwide Cable Telephony Service Revenues (US$ in Millions)



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