BOONTON, N.J. — The top 11 cable operators continue to grab share of the residential phone markets, a move that will cost the incumbent phone companies nearly eight billion dollars over the next five years, says a new market research report from Insight Research Corp. The incumbent phone companies are expected to lose more than three million residential phone lines to cable competitors by the close of 2007 alone, and nearly 17 million residential phone lines over the next five years, according to the new research study.
According to Insight’s newly-released market analysis report, Residential Telephony, 2007-2012, competition between phone companies and cable operators has accelerated in the last year, entering a highly competitive phase. While the telephone service offered by cable companies is relatively new to the market, a large number of customers have already been enticed by the cost savings and highly attractive bundles of video, voice and data service.
“The top cable operators are adding new phone line customers at a very rapid rate because they are pricing their introductory bundles very aggressively,” says Robert Rosenberg, President of Insight. “Insight Research overlaid the footprints of the 11 largest cable operators onto the operating areas of the 12 largest phone companies, analyzed the bundles offered by the cable companies, and estimated the line and revenue losses to the phone companies. The resulting data did not paint a pretty picture for the phone companies,” Rosenberg concludes.
The phone companies detailed in this study include Alaska Communications Systems (ACS), AT&T (with BellSouth), CenturyTel, Cincinnati Bell, Citizens, Embarq, Hawaiian Telecom, Iowa Telecomm Services, Qwest, TDS, Verizon, and Windstream. The cable companies detailed in this study include Bright House, CableOne, Cablevision, Charter, Comcast, Cox, GCI, Insight, Mediacom, Suddenlink, and Time Warner.
A free report excerpt, table of contents, and ordering information is available online at
http://www.insight-corp.com/reports/cable07.asp.
This 103-page report is available immediately for $3,995 (hard copy). Adobe Acrobat (PDF) report licenses are also available.
