Cable raises its voice

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and federal rules. Cable companies often sell their voice service for significantly more as an individual service, but the cost drops dramatically when packaged with other services.

Also, while it can take years to install traditional phone equipment, VoIP expansion can be lightning-fast. To go into the VoIP business, a company doesn't actually need to own or operate its own network. So VoIP has allowed practically anyone with a modicum of venture capital to become a phone service provider in just a few months.

One such VoIP-only provider, Vonage, is the largest provider of Internet calling in the United States. But Vonage's lead might not last much longer against cable operators, which own their own networks and have huge existing customer bases. At Time Warner Cable's current pace of 11,000 new subscribers a week, it will pass Vonage by year's end.

Rousing the giants
At first, the nation's top two cable operators, Cox and Comcast, were hesitant to invest the time and money in VoIP service, pointing to its untested-in-combat experience. The companies preferred the more expensive, but proven, circuit-switched route used by traditional phone companies. Seven years ago, Cox became the first cable operator to offer voice service, but it used circuit-switch technology to put together its "triple play" offering of voice, television and Internet connectivity.

That move mostly earned Cox jeers--critics said "Ma Cable" had no place in the phone business. But with the Bells only able to counter with a double-play bundle of voice and data, Cox began to draw customers. At present, the cable carrier has about 1.2 million phone customers using circuit switches.

And in the last several months, Cox has aimed to increase that success with a complete embrace of VoIP. After using VoIP services to expand into five new markets, Cox plans on blanketing the rest of its territory using the technology. At the same time, Comcast has made a similar commitment, with plans to use the software to reach 15 million or more homes this year.

Other cable providers are making similar moves. VoIP service suppliers such as Net2Phone have made it possible for even the smallest of cable operators to get into the phone business, forcing the Bells to brace for an assault on more of their turf.

"It's one thing when the big cable companies can do it; Cablevision, Time Warner Cable, Comcast, they all have the resources," said Sarah Hofstetter, a cable phone veteran at Net2Phone, which supplies cable operators with VoIP to resell. "But when even the small guys can go head-to-head with the Bells, then (their) competitive edge of even the last mile is lost."

CNET News.com's Jim Hu contributed to this report.

[Lite Rocker]

Maybe if the bells provided cost-efficient service

I mean really!

79 bucks for unlimited long-distance?

I can get it for 29 from Comcast.

c-ya Verizon!!!

[Prndll]

The big big "IF"......

If the cable companies can prove themselves capable of doing a better job of providing telephone service. I say, more power to them....

DIE QWEST DIE

Qworst has to be the absolutely WORST telco in America. Anything that slays this monster is a very good thing. And if there are any Qworst reps reading, just go look for complaints regarding crappy EXTREMELY EXPENSIVE ISDN service in Aztec, New Mexico. THATS ME!

I'm taking the first trip off my pots line that becomes available, and I'm not going back.

[ta56ilwind]

what are these "complex financial arrangements" attorney fees, attorney fees, permits, trademarks, permits, copyrights, traderights, government, green energy is about as green as a dollar bill.. it costs more to license and trade mark a product than it does to make it. you can have your wind turbines, your solar cells, solar collectors, cow manure, you name it, but it's all geared to one thing - inconsistent, if the wind always blew you wouldn't need batteries, if the sun always shone you would wouldn't need batteries, guess what the sun always shines and you don't need light to collect it, you just need to change the collector which has already been done, and that's not the only one... bottom line there is no way the government nor big business is going to let that one slip by, there's just too much money in conventional fuels and your government doesn't really want you depend!!!