Cable vs. Carrier: The Battle Rages On

Three information-related services come in to the typical residence: voice services, Internet services, and video or entertainment services. Voice has long been the domain of the common carriers and the baby bells. Video has long been the domain of the cable companies. When Internet services emerged as hot in the latter part of the 1990s, both of these companies stepped up to the plate to provide an option. The carriers stepped up with Digital Subscriber Line (DSL) services and the cable companies with cable modem services.

Now both sides are working to get into the triple play. The carriers are stepping up activities to get fiber to (or near) the home so they have the bandwidth to deliver video services. The cable providers already have the bandwidth, so they are working to add voice to their service set. One cable company, Cox Communications, Inc. appears to be doing it right. Last year (2006) they topped the J.D. Power survey for customer satisfaction in the SMB market segment (Verizon topped the enterprise space).

In the December issue of Telephony, the Cox Communications story is unfolded in an article that spotlights the progress made by this company as it moves aggressively into both the business and voice space.

We most definitely live in interesting times. When this kind of competition emerges, it has a tendency to drive innovation, service quality, and price reduction. At the end of the day, the customers have a lot to gain.

Published Thursday, January 11, 2007 12:05 PM by mgilbert
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