Report: Cable Internet Telephony Subscribers Jump 900% in 2004

Authored by Mark Hefflinger on February 2, 2005 - 3:35am.
Boston -- The number of North American subscribers to Internet telephony services provided by cable TV providers jumped 900% between 2003 and 2004, from less than 50,000 to nearly half a million, according to a report from Boston-based Infonetics Research. This growth mirrored an increase in spending on VoIP (Voice over Internet Protocol) equipment by cable firms from $63 million in 2003 to $123 million in 2004, and an overall 26% increase in the number of cable broadband subscribers, to 22.4 million. "Investments were up sharply in 2004 as more MSOs either began trials or introduced commercial offerings to a wider market," said Kevin Mitchell, directing analyst for Infonetics. "Although the number of cable VoIP subscribers is still fairly small and two MSOs made up over 90% of that subscriber total in 2004, we expect the penetration of VoIP service delivered directly from MSOs among cable broadband subscribers to increase from 2% in 2004 to 15% in 2007."
http://www.infonetics.com

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