FNF: Telco video being pushed by VoIP

SANTA CLARA, Calif.—Despite having much of the technology for telco video delivery for years, the drive by cable operators getting into the voice over IP market has becoming the tipping point for carriers to begin offering triple-play services, according to Glenn Campbell, an analyst with Merrill Lynch.

Speaking this morning at the Fast Net Futures show here, Campbell, who mostly covers the Canadian market, said it really wasn’t until cable operators started threatening telcos’ core voice revenues that carriers made the move to deploy video. As a result, telcos are coming to the conclusion that they have no other choice but to offer a robust broadband connection, which likely will include video.

"That’s a big change from just a few years ago where the voice revenue was seen as the core," Campbell said.

At the same time, VoIP service providers like Vonage have accelerated the schedule of cable voice deployments, which in turn will continue pushing the telco video market.

"The cable companies, until the arrival of companies like Vonage, had the luxury of time in deploying voice service," he said.

Ultimately, it may be the battle between cable modems and DSL-based Internet access that is key to wrapping up the customer for triple-play services.

"If you lose the broadband business with a cable company, you lose the entire customer relationship," Campbell said.