S&P: Cable could face telco-like voice erosion

Cable TV operators have found a quick payday in residential voice services. They have been stealing telephone customers from the telcos for many years now, and regularly finish at the top of phone service customer satisfaction surveys. However, at least some portion of their success has been due to telcos being willing to let voice customers go.

The big picture, of course, is that consumers themselves are relying less on landline telephone service, and therefore, are willing to pay less for it. Cable MSOs have been able to meet that requirement with their VoIP offerings, but according to a new report from Standard & Poor's rating service, they would do well not to think of residential telephony as a long-term growth market.

S&P says that consumers now might be looking to cut the telephony cord with cable TV operators in part to keep from having to shave tiers or cut the cord on their pay TV packages. Entertainment services have proved more recession-resistant than others, so this may not come as a surprise, and ultimately cable operators may offer no more of a compelling argument to keep residential telephony up and running than telcos.

For more:
- see this FierceEnterpriseCommunications article

In Detail: J.D. Power's residential voice service ratings by region

Related articles:
Cox had some voicemail problems earlier this month
Cable TV companies recently passed telcos in broadband