Thursday, May 2, 2013

Time Warner Cable Now Finds Voice is a Legacy Product

Business customer services and high-speed Internet access drove growth at Time Warner Cable in the first quarter of 2013. But video and now voice have started shrinking. 

As telcos have faced for years, users are dropping VoIP lines as they have been dropping other fixed network voice connections, and shifting to use of mobiles instead. That doesn't mean every cable operator faces the problem to the same degree. 

But some cable operators no longer are taking voice share from telcos, because the big trend now is abandonment of fixed voice. 

What remains to be seen is how far service providers are willing to go in creating triple or quad play bundles that provide incentives for users to buy voice services even if they do not plan to use them. 

Residential high-speed data revenue growth was the result of an increase in average revenue per subscriber, primarily due to an increase in equipment rental charges and a greater percentage of subscribers purchasing higher-priced tiers of service, as well as growth in high-speed data subscribers. 

As has been the trend for some time, residential video revenue decreased, driven by declines in video subscribers and premium network and video-on-demand revenue, partially offset by price increases and a greater percentage of subscribers purchasing higher-priced tiers of service.

Time Warner Cable residential voice revenue decreased due to a decrease in average revenue per subscriber, the company says. 

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