The largest cable company as a result of buying up AT&T's failed cable assets, Comcast offers broad-based VoIP phone service. If they can pull this off within their total system in 18 months, they pose a threat to the traditional telcos who provide circuit switched service. However, Comcast is smart not to offer this at too low a price in the early going.
The Bells need to move aggressively to counter this unregulated competition. Obvious to anyone paying attention is the traditional landline phone service is going the way of the dodo. Still to be resolved, though, is E911 service and how it will be provided reliably over VoIP.
"The technology is cheaper for consumers because it avoids the heavily taxed and regulated traditional local phone networks built and controlled by the Baby Bells--the four regional operating companies formed after the breakup of AT&T. While other cable companies and a host of upstarts such as Vonage Holdings have been selling VoIP since 2002, Comcast is considered the most daunting for the Bells because of its size, financial backing and political muscle."
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