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Summary:

“While the phone companies are only just starting to dig up your yard, cable is already in your house,” Dick Parsons, CEO of Time Warner laying down the smack on the phone companies. He has a point….. On the data side, phone companies added 1.513 million […]

“While the phone companies are only just starting to dig up your yard, cable is already in your house,” Dick Parsons, CEO of Time Warner laying down the smack on the phone companies. He has a point…..

On the data side, phone companies added 1.513 million broadband connections, while cable companies added 909,000 connections so far, with Cox and Cablevision yet to weigh in .. my guess is that the quarter will be a tie for the two companies.But cable companies are hitting phone guys where it hurts the most…the voice business.

* BellSouth – total access line declined 6.1% (238,000), residential lines declined 8.8% (120,000) to bring down the total access lines were 19.8 million.
* AT&T saw 6% (600,000) drop in access lines to bring down the total to 48.8 million
* Verizon lost 7% (830,000) access lines to bring the total down to 47.97 million
* Qwest lost 5.2% of total access lines.

That works out to about nearly 1.75 million lines. I suspect some portion of it is going to wireless providers (which are mostly Bells without wires….) because people just want a cell phone. Still, in comparison to phone companies, cable guys added 550,000 voice customers. Cox/Cablevision are yet to report.

* Time Warner Cable added 270,000 VoIP customers.
* Comcast added 211,000 (lost about 70,000 old voice connections bringing the total net new adds is 141,000)
* Charter added about 69,600 Voice customers.
* Vonage added 283,000 new customers.

Hat Tip, Keith

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  1. Andrew Schmitt Wednesday, May 3, 2006

    Explain exactly how the phone companies are not in my house with respect to voice.

    They have copper wires and a fully depreciated infrastructure.

    All of them also have a wireless vector the cablecos lack. More landlines are migrating to wireless than cable voice, and that is a higher value customer.

    At the end of the day, incumbency matters.

  2. Here’s a question for Dick Parsons: If your cable’s already in my house, why isn’t NFL Network on it?

  3. Verizon only still gets landline money from me for DSL. You know, until they offer “naked DSL” in 2025. TWC still charges a fair bit more and there was some problem with lines in my building when I first moved in.

    But as you mentioned a few days ago: “Did anyone notice that AT&T introduced a three tier DSL pricing structure and are now offering a 6 megabits per second connection for $28 a month. (1.5 Mbps and 3 Mbps cost $13 and $18 a month respectively.) That’s twice as much as what BellSouth is charging for the same speeds.”

    Holy crap! Verizon offers crappy 3/768 or so connection for $29.95 in addition to a landline I don’t use at all, which comes out to about $20/month (literally more than 50% of that is taxes/fees). So that’s over $50 for relatively slow DSL. Lovely! This is in NYC. Damn I wish they’d figure that powerline thing out…

  4. Jesse Kopelman Wednesday, May 3, 2006

    Considering the telcos could offer you 20 Mbps down and 5 Mbps up over DSL without digging up your yard, but are being damn slow about it, it’s there own fault that cablecos are talking smack. For that matter, if they had offered DSL when it first became available instead of waiting for cablecos to eat their lunch, the world would be a different place today. We only have our current duopoly thanks to telco incompetence.

  5. The percent declines in access lines you give are overstated. A decline in lines at AT&T by 600k from 49.4M to 48.8M is -1.2%, not -6.0%. The BLS lines dropped by 0.6%. etc.

  6. Try $554.95/mo for 6Mb down/1.0 up from Cox Communications where I live – Tyler, Texas. No, that is not a joke. That is called a monopoly. And a very unfair one at that.

    Why? Because Verizon won’t step up to the plate. Nor will SBC build out their network. Cox came in and took the market. Now they are taking the prices.

    For your enjoyment:
    down/up
    1.0Mb/128K – $60/mo
    1.0Mb/256K – $75/mo
    1.5Mb/384K – $130/mo
    3.0Mb/512K – $185/mo
    4.0Mb/768K – $255/mo
    1.5Mb/1.5Mb – $370/mo
    6.0Mb/1.0Mb – $555/mo

    Om, feel free to post this on broadbankwiki.com. I own an I.T. consulting firm in the area and these are the ridiculous numbers we deal with every day.

    Anybody have any ideas on a free and non-time consuming way to get them to lower the rates?

  7. Don’t believe the numbers of disconnects reported to you by the telcos. Until I resigned recently, I worked for Verizon Communications. The telcos play number games when reporting customer loss to control company stock prices.

  8. Thanks OM for covering the subject concerning RESIDENTIAL…the NEW “”NEWS” comes out today in DENVER as COMCAST CABLE goes after the sacred CASH COW biz line of QWEST…CABLE is going to go after Qwest business lines with new product and NEW PARTNERSHIPS for doing ”Two Way Trunking”’ into Business Districts never covered before by CABLE! The “””METRO REACH” of Level3 comes into play in a big time way…
    Skibare

  9. Dennis Evans Thursday, May 4, 2006

    Many of the line loses are in fact discounted 2nd or 3rd residential lines which get dropped when DSL or cable modems are substituted for dial up.

    What is the real number of primary lines lost should be the question!

    All the profit comes from business lines in any case.

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