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Essay / Research Paper Abstract
This 5 page paper examines the US cable telephony market, looking at the size, major competitors, existing patterns and trends, forecasts and major influences. The bibliography cites 10 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEcabletel.rtf
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Unformatted sample text from the term paper:
by customer switching rather than new customers entering the market. The total market value is falling, with revenues of US $199.3 billion in 2003 down on 2002 by 1.5%
(Euromonitor, 2003). The cable operators have traditionally been a minority appearing to be in a highly constrained segment of the market due to the high entry and exit barriers and
the fierce competition from the satellite and local loop companies (Shannon, 2004). The liberalization of the telecommunications industry took place with he the Telecommunications Act of 1996 which allowed increased
competition of cable operators into local telephony markets (Schlosser, 1998). Cable telephone operators were slow to take up the opportunities that were
offered as a result of this due to the perceived low returns. Other switching companies have managed to capitalize on the increased liberalization and increased consumer knowledge of telephone provider
choices. Where investments were made in the past, such as by Comcast, the realization of market share has been limited. Cox had about 50,000 cable telephony subscribers in 2002, and
claims to have an average penetration rate of 18% in areas where it is present, however, this is well below the 25% penetration rate for television services (The Net Economy,
2002). This indicates the level of importance that has been attached to the cable operations compared to the telephone operations, especially when the average revenue of telephony has been much
lower that alternative services, the student may argue in the past this has been a strategic choice fir the maximization of resources in other areas.
However, with the development of cable modems and the offering of voice over internet protocol (VoIP) telephone services the able operators are seeing a potential increase
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