Monday, November 10, 2003

Cablevision Extends VoIP to 4 Million NYC Homes

Cablevision has extended its digital voice-over-cable telephony service across its footprint of nearly 4 million homes in the New York metropolitan area. Cablevision's Optimum Voice service was introduced on a trial basis earlier this year and officially launched throughout Long Island in late September. The service provides unlimited local, regional and long-distance calling across the U.S. and Canada for a flat rate of $34.95 per month. It includes five custom calling features (Caller ID, Call waiting, Call return, three-way calling and Call forwarding) and provides fully functioning E-911 service.
http://www.cablevision.com

  • In September 2003, Cablevision said its "Optimum Voice" was being delivered using a Siemens' softswitch. Capacity for 100,000 lines had been installed and the company said it is ready to scale as demand requires. Cablevision is also preparing to add a number of additional bells-and-whistles to the service, including a customer Web portal with call detail records, enhanced voicemail, advanced operator assistance, optional number portability, credit card billing, voice-over-instant messaging, and conference calling. Cablevision estimates a total incremental capital cost of $150 per subscriber, covering $50 for the modem (incremental), $50 per port on the softswitch, and $50 for a truck roll. The company predicts a margin of about 40-45% for the voice service, which would mean a payback period of about 10 months for each new customer.


  • Among the early trial users of its VoIP residential service, Cablevision found that 33% were buying it as additional line, 37% were buying it as a replacement for all existing phone service, and 29% were buying it as a second line replacement.