* Comcast VoIP subscribers now number 3.8 million
We interrupt our regularly scheduled series on IMS to report the latest market share numbers for consumer VoIP providers in the United States. Based on results reported for the third quarter of this year, it looks like Comcast is the now the clear VoIP market share leader. Comcast added 662,000 Comcast Digital Voice customers during the quarter and it now has 3,774,000 VoIP subscribers, representing a market penetration rate of 9.4% and reflecting net additions of over 2.4 million VoIP subscribers in 12 months. The CDV service is available to 40 million homes representing 83% of Comcast’s footprint.
We interrupt our regularly scheduled series on IMS to report the latest market share numbers for consumer VoIP providers in the United States. Based on results reported for the third quarter of this year, it looks like Comcast is the now the clear VoIP market share leader. Comcast added 662,000 Comcast Digital Voice customers during the quarter and it now has 3,774,000 VoIP subscribers, representing a market penetration rate of 9.4% and reflecting net additions of over 2.4 million VoIP subscribers in 12 months. The CDV service is available to 40 million homes representing 83% of Comcast’s footprint.
Coming in at second place for VoIP market share at the end of the third quarter is Time Warner Cable Digital Phone service. Its subscriber number totaled 2.6 million, representing an 11% penetration of service-ready homes passed. The company’s net additions were 275,000 during the third quarter, marking the largest quarterly voice services gain in the company’s history.
Vonage added 78,000 net subscriber lines during the quarter, up 37% from 57,000 in the second quarter 2007, and it finished the third quarter with more than 2.5 million lines in service. Vonage also improved its operating losses, and the company expects to generate positive adjusted operating income for 2008.
Cablevision, with a smaller service area than Comcast or Time Warner Cable (based on only 4.6 million homes passed) wins the award for greatest percentage of VoIP subscribers inside its service territory. With 1.49 million VoIP subscribers, Cablevision’s Optimum Voice has achieved a 32% market share. (Note: Cox Communications has a greater market share of voice subscribers in its service area with an estimated 40% share but the Cox service is a mix of TDM and VoIP technology.)
Our observations: First, cable companies are earning impressive voice services market share using VoIP at the expense of the phone companies who still largely use traditional voice infrastructures. Second, the growth rates for cable companies vs. Vonage suggest that companies that can bundle other services like Internet and video have the long term advantage. And finally, we ask the cable companies “Now that you’re winning consumer share with VoIP, when will you start showing progress with business VoIP services?”
