Saturday, September 20, 2003

Cablevision Launches Residential VoIP in New York

Cablevision, which provides cable TV service to some 3 million households in the New York metropolitan area, launched a residential VoIP service offering unlimited local, regional and long distance calls throughout the U.S. and Canada for $34.95 per month. The "Optimum Voice" service includes five premium calling features: call waiting, caller ID, call return, three-way calling and call forwarding. Optimum Voice works over a cable modem with household electricity as its power source (no back-up). International calling must be made via prepaid phone cards as there is no other billing other than the monthly flat rate fee. E911 service is provided.


Cablevision said its goal is to create an IP voice application that when used with its cable modem service would be superior and differentiated from Verizon's services. Free professional installation is provided. The bundled price for Cablevision's "Optimum Voice" + cable modem service (3Mbps/1Mbps) is $79.90, compared to $89.90 Verizon's Freedom plan (unlimited local/LD calling) + DSL (1.5Mbps/128Kbps).


Cablevision currently serves about 921,000 cable modem customers. There is a churn rate of about 2% per month. Penetration of Cablevision's cable modem service is highest on Long Island at greater than 30%. Company-wide the cable modem penetration rate is 22.8%, compared to about 14% for Comcast.


Cablevision's "Optimum Voice" is being delivered using a Siemens' softswitch. Capacity for 100,000 lines has 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.


In September, Cablevision began to offer high-definition programming as a VOD service. Cablevision's HD library includes popular theatrical films as well as unique titles originally seen in IMAX theaters. Cablevision is offering its digital customers with high-definition television sets HD-capable converter boxes at no additional cost over the standard box rental fee. More than 20% of all Cablevision cable customers today are digital customers, up from 1.4% penetration a year ago. More than 90% of homes in its territory are eligible for digital. The company expects to have 875,000 to 900,000 digital customers by year's end. Cablevision is providing an average of 2 digital boxes per home.


Recently, Cablevision also decided to remove certain sports programming, notably the YES Network (Yankees), from their Expanded Basic tier and to make it an a-la-carte offering. Some 647,000 had the programming removed.
http://www.cablevision.com

Broadcom Introduces 5th Generation GigE Switch Processors

Broadcom introduced its fifth-generation of integrated Gigabit Ethernet (GbE) switch chips designed for small-to-medium businesses (SMB). The new processors enable 24-, 16-, 8-, 5-, and 4-port GbE switches to be manufactured as single-chip solutions and 48-port GbE switches to be manufactured as multi-chip solutions. A key innovation with Broadcom's latest ROBOswitch line-up is the integration of a GbE copper physical layer transceiver (PHY) onto the 8-port, 5-port and 4-port switch chips. In addition to offering microcontroller and Ethernet ports for management, the 24- and 16-port GbE switch processors support the use of the standard PCI-bus for management, enabling OEMs to continue to use the processors and software developed from their previous generations of Broadcom switches. The 24- and 16-port GbE switch processors also provide premium features, such as 802.1x and 802.1Q VLAN for security and jumbo frames for increased performance. They also support managed features, including trunking, port-based rate control, 802.1w rapid and 802.1s multiple spanning tree protocols for network management, and 802.1p for quality of service and prioritization of different traffic types.


Pricing for the 4-port Gigabit Ethernet chip begins at $36 each per 1,000 units, while an 8-port switching chip is priced at $58 each per 1,000 units. Broadcom said the market dynamics for Ethernet switches are changing radically. Until now, GbE switches were considered to be too expensive for all but enterprise applications. However, GbE-enabled laptops, PCs and network interface cards (NICs) are driving the cost of GbE to all-time lows. This, in turn, has accelerated the demand for higher bandwidth GbE switch performance across all segments of the market, further increasing volumes and reducing cost.
http://www.broadcom.com