Digital Telephone Service: Cable Setting the Pace

Study indicates a potential $4 billion savings for Ohio consumers



03 Nov, 2006, 00:00 ET from Ohio Cable Telecommunications Association

    COLUMBUS, Ohio, Nov. 3 /PRNewswire/ -- Consumers in Ohio stand to save
 as much as $4 billion over five years, thanks to competition from cable
 operators who now deliver phone service, according to a recent economic
 study. Residential cable telephony customers in Ohio will save an average
 of $135 or more per customer each year, the study finds.
     Nationally, cable phone service is now available to more than 75
 million homes and more than seven million customers currently subscribe to
 the service. By the year 2011, cable telephone customers are projected to
 grow to 24 million which is expected to result in over $100 billion of
 savings for both residential and small business users, concludes the
 economic research firm Microeconomic Consulting and Research Associates,
 based in Washington, D.C.
     These projected savings are based on two primary factors:
 
      - the amount that existing cable customers currently save by using lower-
        priced cable telephone service vs. the increased cost they would pay
        for service from the incumbent telephone providers (direct savings);
        and
      - the competitive response by the incumbent telephone providers to reduce
        their prices to compete with cable's new telephone service (indirect
        savings).
     The study was commissioned by the National Cable & Telecommunications
 Association. A new study by Convergence Consulting Group also predicts that
 U.S. cable operators will garner 24 percent of residential telephone
 customers by the end of 2009.
     Jonathon McGee, Executive Director of the Ohio Cable Telecommunications
 Association, noted that the availability of digital telephony is being
 continually expanded throughout the state. "By setting the standard for
 innovation, cable companies are making their presence known in a market
 dominated for more than a century by traditional phone companies," said
 McGee. "Thanks to the Ohio cable industry's ongoing investment in broadband
 infrastructure, our customers increasingly have access to a full range of
 advanced and affordable telephone, video and Internet services."
     See referenced reports at the following Web sites:
     www.micradc.com/news/news.html
     www.convergenceonline.com/reportE.html
 
     OCTA is the primary trade organization for cable operators in Ohio.
 
 

SOURCE Ohio Cable Telecommunications Association
    COLUMBUS, Ohio, Nov. 3 /PRNewswire/ -- Consumers in Ohio stand to save
 as much as $4 billion over five years, thanks to competition from cable
 operators who now deliver phone service, according to a recent economic
 study. Residential cable telephony customers in Ohio will save an average
 of $135 or more per customer each year, the study finds.
     Nationally, cable phone service is now available to more than 75
 million homes and more than seven million customers currently subscribe to
 the service. By the year 2011, cable telephone customers are projected to
 grow to 24 million which is expected to result in over $100 billion of
 savings for both residential and small business users, concludes the
 economic research firm Microeconomic Consulting and Research Associates,
 based in Washington, D.C.
     These projected savings are based on two primary factors:
 
      - the amount that existing cable customers currently save by using lower-
        priced cable telephone service vs. the increased cost they would pay
        for service from the incumbent telephone providers (direct savings);
        and
      - the competitive response by the incumbent telephone providers to reduce
        their prices to compete with cable's new telephone service (indirect
        savings).
     The study was commissioned by the National Cable & Telecommunications
 Association. A new study by Convergence Consulting Group also predicts that
 U.S. cable operators will garner 24 percent of residential telephone
 customers by the end of 2009.
     Jonathon McGee, Executive Director of the Ohio Cable Telecommunications
 Association, noted that the availability of digital telephony is being
 continually expanded throughout the state. "By setting the standard for
 innovation, cable companies are making their presence known in a market
 dominated for more than a century by traditional phone companies," said
 McGee. "Thanks to the Ohio cable industry's ongoing investment in broadband
 infrastructure, our customers increasingly have access to a full range of
 advanced and affordable telephone, video and Internet services."
     See referenced reports at the following Web sites:
     www.micradc.com/news/news.html
     www.convergenceonline.com/reportE.html
 
     OCTA is the primary trade organization for cable operators in Ohio.
 
 SOURCE Ohio Cable Telecommunications Association