The Yankee Group Analyzes Cable Telephony Viability and Threat to the ILECs

Business Wire, April 25, 2002

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--April 25, 2002

Deployment of Telephony Will Provide Cable Operators

With New Revenues and Effective Differentiation from Competitors

Driven by the need to capture a greater share of consumer communications spending, cable operators are increasingly encroaching on the core product portfolio of the incumbent local exchange carriers (ILECs) through deployment of local voice services. While AT&T Broadband and Cox are the leading cable operators in the rollout of cable telephony, others such as Time Warner, Charter, Cablevision, and Comcast are also implementing trials of packetized-voice service. In a recent Report, "Cable Telephony: Still Far from Threatening the ILECs?," the Yankee Group finds that cable telephony will enable multiple system operators (MSOs) to increase average revenue per customer as well as improve their competitiveness against rivals such as the satellite services providers and the phone companies.

"Cable operators are gearing their efforts toward becoming the only communications, entertainment, and productivity services company that a consumer will ever need," says Imran Khan, senior analyst with the Yankee Group's Consumer Technologies & Services research and consulting practice, and author of the Report. "Cable operators, however, must address several challenges in successfully rolling out telephony services including quality of service (QoS) and reliability," notes Khan. The Report analyzes key demand- and supply-side drivers and restraints surrounding cable telephony deployment, and evaluates its overall market outlook. Furthermore, the Report highlights various cable operators' strategies in incorporating telephony within their overall product mix and provides an overview of the cost structures involved in implementing telephony.

Note to Editors

For an interview, please contact Imran Khan at ikhan@yankeegroup.com.

The Yankee Group (www.yankeegroup.com)

The Yankee Group is a global leader in technology research and consulting. Our customers, which include technology vendors and users, benefit from our accurate, reliable, and trusted research, consulting, and personalized one-to-one client interaction covering communications and IT products and services. Now in our fourth decade, the company is headquartered in Boston and maintains offices throughout North America, Europe, Latin America, and the Pacific Rim.