A Strong Showing in Phone Service Competition [CableTechTalk]
According to the latest Local Telephone Competition report, released by the FCC this past Tuesday, the phone service market is showing growing competition. The report focused on the telephone industry through the end of 2009.
If you're wondering why the latest report contains data a year old, that's because it is the most recent data the FCC has on the subject.
Opening up the data to both Voice over Internet Protocol (VoIP) service and traditional switched access lines, the FCC found a total of 153 million wireline telephone connections through December 2009. Of that 153 million, 26 million were designated as interconnected VoIP subscriptions, with the remaining 127 million representing traditional switched access lines.
The FCC’s VoIP data included independent VoIP service companies like Vonage, as well as cable and telephone companies that offer VoIP on their networks. Eighty-four (84) percent of the VoIP subscribers were broadband bundle customers, and 87% of these bundles were provided via cable modem.
The FCC also broke down the 153 million connections by residential (45% switched access and 15% VoIP) and business (38% switched access, 2% VoIP).
Cable operators have steadily grown their telephone services with more than 23.5 million customers nationwide, representing one out of every four households.
With the cable companies creating this growing competition in the phone market, there have been drastic savings in home telephone bills. In fact, according to research from Microeconomic Consulting & Research Associates, Inc. (MiCRA), roughly $111 billion will be saved on residential and small business phone bills by 2012.