Aswath isn’t going to be thrilled with the headline, but I am still calling it VoIP. Cable giant, thanks to some aggressive marketing and bundling has managed to chalk up a million digital voice (VoIP) customers. The growth has been so good that the company is adding 4000 jobs. Yet another proof of CableCos continuing success with voice and triple play offerings.
“Comcast Digital Voice and the Triple Play bundle continue to exceed our expectations. Customers are attracted to the convenience of the service and the value of the $33×3 offer,” said Steve Burke, chief operating officer of Comcast Corporation. “We’re increasing our job growth projections this year to meet the accelerating customer demand for the bundle and our Comcast Digital Voice service.”
UBS Cable and Satellite Analyst Aryeh Bourkoff believes that the company crossed the million subscriber mark at the end of August which translates to about 310,000 VoIP subscribers for the first nine weeks of the third quarter. That is up 32% from the previous quarter. Bourkoff had an estimate of roughly 390,000 net adds in the current quarter, but at current pace, the company could add roughly 420,000 VoIP subs in the third quarter. [via UBS Research]
What this means? The heat has been turned on a notch for the likes of Vonage, and even the phone companies which are struggling to roll out their video (thus the triple play) products.
The Bells still hold the key – wireless.
Om,
I think we will eventually see qaud plays from the telecoms… Who’s in the best position to offer web-based storage as a bundles in the next 5-10 years (as data makes a move towards “data everywhere”)?
I would also venture to say that it’s not completely impossible that the telecoms could expand into other areas of computing (other than broadband + storage) – what about thin-client computing? General users rarely need 5GHz of Intel Core Duo processing power – how about thin-client internet and basic computing embedded into cheap devices (offered as “free”)?
I know I come off with things that sound crazy, but after analyzing the last +30 years of computing and networking, I can honestly say that the above sounds pretty feasible.
Best Regards,
Robert Dewey
Besides the short term reselling of cable branded Sprint/Nextel…the SpectrumCoLLC auction should give Cable operators all the spectrum they need for a Nationwide QUAD play in wireless phone service.
When will Comcast buy Sprint?
OM …
Comcast did not indicate if digital VOIP is replacing old land lines. I suspect most of these are coming from small businesses. VOIP usually does not provide 911 coverage. I have VOIP as my primary residential phone and I would rely on my cellphone for the 911 service. Features that come with VOIP are truly outstanding and no additional cost. Disclaimer: I am a Vonage customer.
Landline operators will have to embrace VOIP or suffer. Did you watch the recent AT&T ad where they tout landlines superiority when internet connection fails? Two words: Call Forwarding! Its free with VOIP.
Adeel:
Can you please indicate some of the “truly outstanding” VoIP features that attract you. One can have a box that is not much more than $25 or so, but connects to a PSTN line at home and offers these features. I am not sure the consumers need to lose PSTN. VoIP has benefited the competitive market, but the consumers have realized only second-order benefits.
Adeel,
“I suspect most of these are coming from small businesses. VOIP usually does not provide 911 coverage.”
Actually Comcast does not offer VoIP to business YET. These are 1 million residential.
They do provide e911 coverage though.
Odd thing is that you can always tell the difference when someone is on a VoIP line… Drops, stutters, random noises and screeches – from Comcast VoIP users in particular. Marginally better than talking to someone on a cell phone in traffic.
Not. Ready. For. Prime. Time.