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Report says consumers are winning when cable, telcos compete

November 15, 2007 By Mike Robuck

A report commissioned by Comcast finds that consumers are getting lower prices on voice services because of the increased competition cable operators are facing from telcos.

The report, by Microeconomic Consulting & Research Associates, said the total benefit in residential and small business voice service markets during the period from 2008 through 2012 is projected to be $111 billion. The study also said that consumers have already received benefits of $23.5 billion from cable voice competition over the past four years, and from the competitive response of telcos over the past two years.

According to the report, cable telephony customers save almost $12 a month on their phone bills compared with the rates charged by the incumbent telco providers. The report’s authors project that 32 million households will subscribe to cable voice services by the end of 2012.

Cable’s triple play bundle has also caused the telcos to respond by lowering their prices and offering more attractive bundles in order to compete, which also has created benefits for consumers.

Filed Under: Wire and Cable Tips

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