Cable telephony growth faces sluggish future

Cable MSOs such as Cablevision, Comcast, Cox and Time Warner Cable may have built sizeable voice businesses over the past ten years, but Pali Research thinks that the cable telephony growth is slowing down. At the top of the cable telephony heap is Cablevision, which continues to lead the cable telephony market with more than 60 percent of its video customers taking voice service as part of a triple play service package. Alternatively, Comcast and Time Warner Cable saw a decrease in ‘net telephony additions' in 2008.

Greenfield argues that Comcast and Time Warner Cable will continue see a drop in new customer additions throughout this year. "While Cablevision is way ahead of its peers in telephony, the question is now becoming, will its peers be able to get to even 25% penetration, let alone the 40%-plus levels Cablevision has achieved or is the opportunity to further cement the bundle simply dwindling by the day?" Greenfield asked in a research note.

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