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Cable Telephony Service: The Third Leg of Cable's "Triple Play" Bundle

Published by: In-Stat

Published: Nov. 15, 2003 - 51 Pages


Table of Contents


Executive Summary
Methodology
Overview: The Long & Short of Cable Telephony
Today's Cable Telephony Market
Market Drivers for Cable Telephony
The Technology Progression of Voice over Cable
Cable Telephony Network Architectures
The Circuit-switched Network
The "Hybrid" Network Architecture
The Future: VoIP Networks
IP Voice Service
The IP Difference
The IP Network and the PSTN
Types of IP Telephony
VoIP in an HFC Network
IP Network Architecture
VoIP-based Cable Telephony Trials & Deployments
The Twisted-Pair Overlay Network
VoIP Cable Telephony Technology Standards
Cable Modem Standards & DOCSIS
DOCSIS 1.1
DOCSIS 2.0
PacketCable
IPCablecom: A Global PacketCable Effort
Cable Telephony Provisioning Costs: Circuit-switched vs. VoIP
Cable Telephony Service by Region
North America
US
Comcast
Cablevision
Charter Communications
Cox Communications
GCI
Insight Communications
RCN
Time Warner Cable
Canada
Europe
NTL
Telewest
UGC Europe
ROW
Australia
Chile
Japan
Hong Kong
Israel
Equipment Manufacturers & Service Provider Partners
Cable Modems/MTAs and CMTS Manufacturers
ADC
Arris
Cisco Systems
Motorola Broadband
Scientific-Atlanta
Terayon
Thomson
Toshiba
Gateway & Switch Vendors
Cedar Point Communications
Cisco Systems
Convergent Networks
Gallery IP Telephony
Lucent Technologies
Nortel Networks
Nuera Communications
Siemens ICN
Sonus Networks
Syndeo
"Virtual" or Voice-over-Broadband Service Providers
Vonage
Net2Phone
Cable Telephony Forecasts
Subscriber Forecasts
Service Revenue Forecast


List of Tables


Table 1. Cable Telephony Market Drivers

Table 2. 2003 Telephone Service Prices in Orange County, CA: Cox vs. SBC

Table 3. Timeline: The Progression of Cable Telephony Technology

Table 4. US Cable Telephony Subscribers by MSO

Table 5. North American Cable Telephony Deployments and Trials

Table 6. UGC Europe Cable Telephony Subscribers by Country

Table 7. Multimedia Terminal Adapters: Available Products

Table 8. PacketCable Qualified CMTS Products

Table 9. Worldwide Cable Telephony Subscriber Forecast (Subscribers in Thousands)

Table 10. Worldwide VoIP Cable Telephony Subscribers (Subscribers in Thousands)

Table 11. Worldwide Cable-based Voice-over-Broadband User Forecast (Users in Thousands)

Table 12. Worldwide Cable Telephony Installed Lines (Lines in Thousands)

Table 13. Cable Telephony Penetration of Forecasted Cable TV subscribers (Subscribers in Millions)

Table 14. Worldwide Cable Telephony Service Revenues (US$ in Millions)


List of Figures


Figure 1. Circuit-switched Network Diagram

Figure 2. Hybrid Circuit-switched/IP Network Diagram

Figure 3. VoIP Network Diagram

Figure 4. Primary PacketCable Equipment Components

Figure 5. Circuit-switched Cable Telephony Costs ($ per line)

Figure 6. VoIP Cable Telephony Cost Estimate: Network Powered ($ per line)

Figure 7. VoIP Cable Telephony Cost Estimate: Premises Powered ($ per line)

Figure 8. Worldwide Cable Telephony Subscriber Forecast (Subscribers in Thousands)

Figure 9. Worldwide Cable Telephony Service Revenues (US$ in Millions)

Abstract

When the first cable telephony services were introduced, the initial response from both investors and competitive service providers was either puzzlement or a big yawn. After all, why would cable operators spend enormous amounts of capital to provide a service that was readily, and inexpensively, available from traditional voice carriers? The cable operators believed two things:

1. A bundle of video, voice, and data services could attract new subscribers.
2. Advances in Hybrid Fiber-Coax (HFC) technology would offer an increasingly cost-effective way to provide telephony services over their existing cable TV infrastructure.

Time has proven the cable industry correct on both points, and, as of mid-2003, more than 9.5 million households and businesses around the world had signed up for cable telephony service.

This report examines and updates cable telephony services provided by cable TV operators. It covers market and industry drivers for cable telephony, examines network architectures, and discusses existing technology standards. The report focuses closely on the transition from circuit-switched cable telephony services to VoIP services, and forecasts worldwide cable telephony subscribers and revenues through the year 2007.

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