Thursday, May 27, 2004

Comcast to offer phone service to 40 mln in 2006 UPDATE 2-Comcast to offer phone service to 40 mln in 2006

Reuters, 05.26.04, 12:55 PM ET

By Michael Learmonth

NEW YORK, (Reuters) - Comcast Corp. said Wednesday it will offer telephone service to more than 40 million households by 2006, as it follows a host of other cable operators challenging local telephone companies.

Comcast, the nation's largest cable television company, said it would begin an aggressive roll-out of telephone service with a technology known as VOIP, or Voice-over-Internet protocol, which allows phone calls to be transmitted using a cable modem over high-speed data lines.

Comcast follows rivals Time Warner Cable, Cablevision Systems Corp. and Cox Communications Inc. in making hefty investments to offer phone service over high- speed cable lines.


But with 21.5 million subscribers, Comcast is far larger than its cable competitors and analysts say it offers the biggest long-term threat to telecom carriers in the areas it serves.

"Comcast will likely become one of the biggest phone companies over the next decade," said UBS analyst John Hodulik.

Comcast's footprint encompasses large chunks of the markets of larger carriers, including 30 percent of SBC Communications Inc._, 27 percent of Verizon Communications_, 23 percent of BellSouth Corp. and 28 percent of Qwest Communications International Inc._.

"We expect these carriers to see accelerating pressure on residential access lines in 2005 as these deployments occur and sales efforts gain traction," Hodulik said.


Comments: Post a Comment

This page is powered by Blogger. Isn't yours?