2006 November 24 Friday
Cable And Phone Companies Compete Directly

Plain Old Telephone Service (POTS) providers have been facing a lot more competition due to the falling costs of cellular phone services. But the extent of the competition coming from cable companies is highlighted by a New York Times article themed mainly around the complaints that telephone companies have about cable company field workers who damage phone company equipment. Cable companies are providing phone service over cable lines and winning rave reviews from customers.

J. D. Power, which measures customer satisfaction, ranked Cox as the best phone company in the northeast, southwest and west this year. It has nearly 950,000 cable customers in Arizona.

Any readers switched to cable phone service? Do you like it? Can you tell the difference? Saved much money?

The phone business of cable companies is growing quite rapidly.

Now, the Bellsí chief competitors are Time Warner Cable, Comcast and other cable providers that have the technology, armies of installers and marketing budgets to lure away video and phone customers. By the end of the year, for instance, cable operators will have nearly nine million phone subscribers, up about 58 percent from 2005, said Craig Moffett, an analyst at Sanford Bernstein.

Internet phone start-ups including Vonage and SunRocket have several million more customers, many of whom came from Verizon, AT&T and other Bell companies.

I throw away so much junk mail that I have no idea if Cox offers this service locally.

Phone, internet, and TV service for under $100.

Cox is offering customers in Phoenix a discounted package of digital cable, phone and high-speed Internet service for $99.95 a month, while Qwest is selling a comparable package, with the help of DirecTV, for about $92.97 a month.

Prices will fall and bandwidth will go up.

Share |      By Randall Parker at 2006 November 24 01:13 PM  Economics Communications

Husks said at January 27, 2016 8:53 PM:

Competition happens naturally if regulators stay out of the way. Problem is, as stated below, that there would be a lot less infrastructure investment. if there was genuine competition since the risk reward ratio is not going to justify it at the level we have seen.

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