Cable Telephone Subscriptions to Grow to 11.5 Million by 2010

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New Topic Paper by The Diffusion Group Predicts Cable Telephone Subscriptions to Grow Four Fold between 2003 and 2010

According to a new white paper from research consultancy The Diffusion Group, the number of cable telephone subscribers is expected to grow from 2.4 million in 2003 to 11.5 million in 2010. This rapid expansion reflects a strong commitment on the part of cable service providers to expand voice offerings as well as the belated introduction of VoIP offerings on the part of major legacy phone players.

"The cable companies are hoping to tap into the $200 billion U.S. telephone market by offering a myriad of bundled service options that promise to expand revenue per subscriber for carriers and pass on significant savings to consumers," says Michael Greeson, President and Principal Analyst of The Diffusion Group.

"At the same time, the regional Bell operating companies (or RBOCs) are trying to come to terms with several issues surrounding this transition – that is, in which markets, in what year, in what package, and at what price such services should be introduced. Forgoing legacy technology too soon could cost the ILECs billions of dollars. However, postponing this transition until cable service providers build critical mass could cost the RBOCs a fortune in market share."

Service offerings notwithstanding, new research from The Diffusion Group finds that 35% of Internet households have never heard of VoIP services and 30% have heard of but are not familiar with such services. This puts enormous pressure on marketers to carefully craft a persuasive market message, one that should focus first on value and second on enhanced service features.

TDG's new white paper, Embracing VoIP in the Residential Market, is now available for free download on the Company's website, http://www.tdgreserach.com. A more thorough examination of consumer interest in VoIP services can be found in TDG's latest Consumer Snapshot entitled Consumer Interest in VoIP Services, a detailed analysis of those consumers most likely to adopt VoIP services, as well as a consumer segmentation model that service providers can put to immediate use in developing their VoIP marketing strategies.

About The Diffusion Group

The Diffusion Group is the first research consultancy solely dedicated to the digital home and connected consumer. Our analysts are charged with providing timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at http://www.tdgresearch.com .

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Andy Tarczon