NCTA: Sprint, cable companies get cozy

SAN FRANCISCO--Although not all of its partnerships are public, Sprint is delivering voice services to a significant percentage of the cable voice over IP subscriber base. The company announced today at the National Cable Television Association show that it now delivers voice to more than 250,000 residential customers through its cable partners.

The cable industry had about half-a-million VoIP subscribers at the end of 2004, according to Infonetics Research, and is adding about 18,000 subscribers a week currently, according to Kinetic Strategies.

Sprint has announced partnerships with Time-Warner Cable and with Mediacom, the eighth largest cable operator in the U.S., and has other unannounced partners, said Mike D. Smith, director of business developments, Cable Solutions for Sprint. It is also involved in a market trial for wireless services with Time Warner Cable in Kansas City. At NCTA, the company announced three smaller cable operator customers, Massillon Cable TV, Wave Broadband and Blue Ridge Communications.

"We want to show the scope of our cable initiative--that we are not just focused on the biggest players," Smith said. "We are just as interested in smaller cable companies."

The company is also focused on helping cable partners move beyond the basic step of adding wireless service to their service bundle--the Quadruple Play--to creating "what is really relevant, the integration of wireless into their service," Smith said.

That includes creating Integrated Messaging Services, and links between wireless phones and devices including televisions and digital video recorders. Sprint is demonstrating the capability of programming a DVR from a wireless phone at the NCTA.

There are still some tricky issues to be worked out, however.

"We are still talking about what the business framework would look like," Smith said. "We don't have MVNO [mobile virtual network operator] agreements with cable companies today. What we have are expanded distribution deals--today they sell Sprint-branded phones and Sprint service plans in a loose bundle, with a single bill and Tier 1 customer care."

Tightly tying together the basic services that each offers "will take a tremendous amount of cooperation between the companies," he admitted.

Sprint is offering cable companies the kind of VoIP service they want--a true primary line replacement. It comes with connections to every public safety access point for E-911, and includes CALEA and Universal Service Fund support.

"We are complying with all industry standards," said Mark Chall, director of service delivery for Cable Solutions. "We are paying interconnection fees, and that is already built into our rates. So there are no surprises if regulation changes."