With Sprint, Mediacom can move into the VoIP market faster than it could on it own, while enabling consumers to switch to the service using existing phone numbers, directory listings, telephone equipment and wiring, Mediacom officials said. Beyond VoIP, Mediacom is considering adding Sprint's wireless phone service to its bundle.
For Sprint, the deal is the latest in its strategy to offer its cellular network wholesale to cable operators and other companies. AT&T Corp., for example, recently said it would offer wireless service under its brand name using Sprint's network.
In a deal similar to Sprint and Mediacom, AT&T recently entered an alliance with cable operators Comcast Corp., Cox Communications Inc. and Time Warner Inc., which have agreed to carry AT&T's VoIP offering "CallVantage." In a research note released Wednesday, market researcher Probe Group LLC said the deal was a "win-win" for all the parties.
The AT&T alliance enables the cable companies to enter the VoIP market with minimal risks, and having the option to expand the service through AT&T, Probe Group said. Keeping tight control on costs is important to cable operators, given the fact that satellite TV companies gained 800,000 subscribers in the second quarter while cable operators' growth stalled. In addition, competition from companies offering digital subscriber lines (DSL) have forced prices down for broadband services.
"Cable operators need to find ways to reduce their risk profile and the alliance with AT&T gives them an instant VoIP arrow in their quiver, at very little cost," Probe analyst Allan Tumolillo said.
Discover the benefits of scalable backbone and network services for application and cloud providers.
Network automation is gaining momentum. Here's how you can drive this powerful technology to its full potential.
Subsea cable alternatives can provide a level of comfort for those concerned about disruptions. Realistically, they will continue to play a small, but critical role in the short term.
