15/03/2010 - TWC will do its own VoIP
Time Warner Cable has decided its time to leave Sprint's services behind and strike out on its own with voice service. While cable companies have long had wholesale agreements with certain carriers, as competition heats up some are looking for ways to bring these lucrative services in house.
A report by Craig Moffett of Bernstein Research revealed that Sprint's contract with Time Warner Cable "equates to about $5 per subscriber per month in unadjusted earnings, or about $249 million a year." TWC has over 4 million subscribers using the Sprint system for digital voice service.
Time Warner Cable spokesman Justin Venech would not confirm the exact date when this transition will be completed or what TWC pays Sprint for this service, but some sources say it will be within the next four years. "It improves our economics, but it will take several years to complete," Venech said.
For more:
- see FierceTelecom article
- see the FierceCable article
- see this Zacks.com article
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29/10/2009 - Sprint's wireline revenue down, but wholesale VoIP going strong
While Sprint reported wireline revenues of $1.4 billion were down 10 percent year-over-year because of decreases in voice and legacy data services, the IXC's Internet revenues were up 5 percent due in part to increased wholesale VoIP service demand.
Sprint's third quarter Internet revenues were up 5 percent from the third quarter of 2008 and flat sequentially. Sprint claimed the year-over-year increase was from demand for its Global MPLS services as well as demand from cable operators in need of wholesale VoIP service. At the end of the third quarter, Sprint reported it is supporting 4.9 million users of their cable partners VoIP services. While traditional voice declined 14 percent, customers continued to migrate to IP-based services.
For more:
- read the release here
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