Cable VoIP prices drop

Cable VoIP services are getting cheaper, when sold as part of a service bundle, and are close to the prices charged by Internet VoIP players such as Vonage, according to research firm Pike & Fisher.

Cable services are now as little as $10 a month more than independent VoIP offerings, and come with greater reliability, including backup power, the research firm said. That could put independent providers at a greater disadvantage, the firm concluded.

Cable companies are selling their VoIP offerings as primary line replacement services, and set up the service to look exactly like existing telephony without requiring customers to install ATAs or other devices.

“Cable VoIP pricing is likely to make it increasingly difficult for independent providers to win market share, especially as VoIP adoption expands from early adopters to mass market users,” said analyst Mitchell Shapiro, author of the report, in a prepared statement. “The non-techie users will demand greater reliability, minimal learning curves and the convenience of receiving their voice, video and data services from one company and on one bill. Cable's advantage in the mass market VoIP space is likely to become even greater as operators introduce 'converged' services such as 'Caller ID on TV.’”