Worldwide cable-telephony subscribers are on track to top the 10 million mark by the end of 2003 and are seen rising to more than 19 million in 2007 according to In-Stat/MDR, a sister company to Multichannel News.
The research firm said the most powerful market driver for cable telephony is the bundling of telephony service with existing digital-video and high-speed-data services.
"The cable-TV service bundle has played an important role in the growth of cable telephony," senior analyst Mike Paxton said in a release. "At the same time, significant challenges remain as cable operators attempt to further scale their voice services across their networks."
In-Stat sees voice-over-Internet-protocol services playing a small but important role in North American cable-telephony services. VoIP -- offered by companies such as Vonage Holdings Corp. and Net2Phone Inc. -- allows smaller cable operators to provide telephony services without large infrastructure investments.