Time Warner to Use Cable Lines to Add Phone to Internet Service

Time Warner to Use Cable Lines to Add Phone to Internet Service

A high level summary of the VOIP challenge posed by the cable companies. The telcos like Verizon and Bell South have their work cut out for them in reconfiguring the traditional landline business. The huge investments in circuit switching technology will be around a long time and the copper distribution facilities are far from fully depreciated.

Any massive move to VOIP at the customer premises cannot be accomplished quickly. The market for VOIP at this point for both cable and telcos is the broadband customer base, now about a third of households. The business market is another story.

If 800 services migrate to VOIP, that will signal a massive change in investment required at the business premises to get the benefits of VOIP.