Blog Post

Money for nothing, and voice for free

Cablevision today announced that it will offer a new bundle of services, which include VoIP, cable, and high-speed Internet for $90/month. As part of this plan, customers will receive unlimited local and long-distance calling.

Considering that the cable and Internet components currently cost about $90/month anyway, with this promotional plan CVC is essentially throwing in voice service for free.

With the lines between cable companies and the RBOCs continuing to blur, and this is the first gunshot in the battle between bells and the cable guys. Recently, it has been the RBOCs undercutting the cable companies on prices for high-speed Internet service. [via Loop Capital]

Take that Verizon! Now it’s the cable companies returning the favor and offering voice service at discounted rates.

The cable companies will steal a decent amount of lines from the RBOCs. While Verizon is the most impacted by this announcement (New York market), we believe the other RBOCs could start to feel the pressure given the planned launches of VoIP telephony service by the other major cable providers. [via Loop Capital]

As a reminder, please refer to this op-ed

One Response to “Money for nothing, and voice for free”

  1. Charlie Sierra

    This bundling game is exactly what the MSOs want to play.

    Since the MSO have the cost advantage of a fresher capital asset base, and being able to source all service of the “triple play” organically they can really put the screws to the RBOCs. For example, to provide Video the RBOCs all cut deals with the satellites, which means that the to be able to absorb sharp bundle price cuts, the RBOCs voice and data will have absorb this hit.

    It will be interesting to see how long the MSOs wait to move to the Quadrupal play.

    Oh well more “Circling the Drain”…