Cable TV companies enter the market and disrupt the voice market

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Cable TV companies enter the market and disrupt the voice market [Copy link]

　　The already turbulent US voice service market has been stirred up again recently by the entry of AOL-Time Warner Group. The Time Warner Cable Company under the group launched a highly competitive local and long-distance voice service with a monthly subscription price of US$40, which hit the market like a hurricane. For major US telecom operators, it is no exaggeration to describe their situation as "adding insult to injury".
　　According to data from In-Stat/MDR, the number of telecom companies controlling local telephone services in the United States has dropped sharply since 2001. In the first half of 2001, the number of regional telephone operating companies dropped by 2%. Since then, the number has been increasing, and by the first half of 2002, the decline reached 4%. There are three main reasons for the decline in the number of local telephone service companies. First, the number of people using mobile phones is increasing. In addition, there are also many people who choose IP phones. Third, consumers can also choose broadband phones or wired Internet phones like the one launched by AOL this time to make voice calls.

　　　　Cable TV companies rush to the voice market .
　　The entry of AOL-Time Warner will undoubtedly intensify the competition in the US voice service market. At present, the average monthly subscription fee of US telecom operators is about US$60 or even higher. The $40-a-month "digital phone" service launched by Time Warner Cable not long ago is an unlimited local, intrastate and domestic long-distance phone service. Users will also get caller ID and call waiting functions, and if they switch networks, the digital phone number will not change.
　　Previously, two other cable TV service providers in the United States, Cox and Comcast, have launched voice services. In the first quarter of 2003 alone, they developed 790,000 and more than 1.4 million new users respectively. These cable TV service providers usually bundle TV programs, broadband access services and voice services together, not only taking over the telecom operators' signature skills, but also delivering local and long-distance voice, images and data to customers through a cable. In addition, the substantial discounts generated by the bundled services are really attractive.

　　　　Little Bell explores video program services
　　Such a strong opponent made Little Bell Company worried about its old business - local telephone services, because last year, their local telephone users had already shown negative growth. However, this time Little Bell responded quickly. They fought back and planned to provide video and TV services to home users through their own lines to counter the Internet telephone services provided by cable TV companies.
　　Southwestern Bell is a representative of those who are preparing for the future. For several months, the company has invested in providing users with a movie subscription service similar to that of cable companies. At the same time, Southwestern Bell recently planned to acquire satellite TV company Hughes Electronics. It is reported that Qwest and BellSouth are also testing the quality of video services.
　　For cable TV companies and telephone companies in the United States, the move to provide a full range of services is necessary to attract and keep users. Cable companies will add voice service functions to their service packages. As Internet phone develops, cable companies will begin to sell telephone, cable TV and broadband connection services. And as William Daley, CEO of Southwestern Bell, said, there will definitely be video program services in the services provided by telecommunications companies in the future, but how to achieve it is still a question.　　
　　However, some telecommunications companies in the United States have tried to provide video program services, but failed. Analysts say that telecommunications companies are not good content providers, but a distribution service provider. Some people say that it will take Southwestern Bell 10 years to improve the quality of the network to match the quality of TV provided by cable companies.

　　　　Long-term goals for network upgrades have been introduced .
　 However, many telecommunications companies are upgrading their networks to prepare for providing more comprehensive and higher-quality services. The existing long-distance telephone network in the United States uses high-speed optical fiber, but the local telephone network still uses traditional copper wires, and its equipment cannot handle the new generation of services that require high bandwidth. The lack of large capacity in the local network is often criticized by the industry and is pointed out as the main factor that slows the development of more mature Internet services and software applications.
　　As early as the beginning of this year, Verizon Communications launched a new broadband network strategy, which set off a new climax of network upgrades by American telecommunications companies. Verizon Communications is currently the largest telecommunications company in the United States. In the past 35 years, its network has been regarded as the best in the industry, but now it is increasingly incompatible with the needs of the situation. To this end, Verizon plans to spend billions of dollars in 10 years to transform the network, and technologies such as fiber to the home (FTTH) and wireless access are under consideration. The company's goal is clear, which is to directly target the current thriving home broadband access services of major cable TV companies. The new network that Verizon is determined to build is no longer a traditional telecommunications network, but a new broadband network that has attracted the most advanced network technology.
　　The impact of Verizon Communications' approach on the US telecommunications industry is huge. In early June, Verizon Communications, Southwestern Bell, and Southern Bell reached an agreement on fiber-to-the-home (FTTH) standards. The three local telephone companies said they had reached an agreement on a series of technical standards in order to promote the development of fiber-optic networks and introduce new services such as picture sharing and interactive games. By connecting high-speed lines directly to offices and homes, users will have nearly unlimited bandwidth and can freely use new Internet functions and voice and video services. The Little Bell Company believes that this will greatly promote the evolution of new services such as interactive games, picture sharing, telephone communities, and video conferencing.
　　In addition, Sprint recently announced that it will begin a 12-year plan to upgrade the company's 8 million local telephone lines in order to adopt more advanced and efficient packet technology, so that voice, video, data and other content can be transmitted through the same channel. This technology is currently widely used in long-distance telephone networks, but has not yet been used in local telephone networks. Sprint said that although the current local network can also convert and transmit data, the efficiency is not high. The upgraded network will be faster, more effective, and more economical, and it will also facilitate the company to introduce new video and data products in the future.
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　　In the short term, the entry of cable TV companies has made the situation of telecommunications companies more severe, but if telecommunications companies can strengthen their own strength, expand their business scope and improve service quality through competition with their rivals, it will be very beneficial to their long-term development. For American consumers, more choices, richer service types and lower prices are all good news.
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