Cable VoIP Technology Is Ready for Prime Time, Says Yankee Group; The United States Will Drive Global Cable VoIP Markets in 2004

BOSTON--(BUSINESS WIRE)--Aug. 2, 2004--VoIP is finally becoming a reality. According to the Yankee Group report, Activity Heats Up in the Global Cable VoIP Market, hosted voice providers such as Vonage and U.S.-based MSOs are responsible for most of the current market growth, but global cable operators are beginning to follow suit.

"Starting in 1997, some U.S. MSOs began to familiarize themselves with telephony deployment and marketing using legacy circuit-switched solutions. Although margins on this business have been low for some operators, voice remains a crucial element of their bundled strategy," says Lindsay Schroth, Broadband Access Technologies senior analyst.

“After many years of testing, the VoIP technology is finally available and ready for prime time. The U.S. market, which represents almost all the cable VoIP market today, also will drive global MSOs to move forward”

"After many years of testing, the VoIP technology is finally available and ready for prime time. The U.S. market, which represents almost all the cable VoIP market today, also will drive global MSOs to move forward," says Schroth.

During the past year, Cablevision launched VoIP services to its entire high-speed data footprint, giant Time Warner Cable announced plans to make the service available to its entire footprint in 2004, and hosted providers such as Vonage gained traction in the consumer market.

Report findings include:

-- Alternative voice providers currently have the majority of cable VoIP subscribers, but the MSOs will gain the lead quickly in 2004.

-- Alternative voice providers will see significant growth rates in the next few years, but we expect growth rates to decline as consumers get the option to purchase a primary line equivalent VoIP service.

-- European MSOs will deploy hybrid circuit-switched/VoIP architectures in 2004 because it is low risk.

PRESS CONTACT

For interviews contact Lindsay Schroth, [e-mail]

THE YANKEE GROUP (www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.