TIME WARNER CABLE ROLLING OUT VoIP WITH HELP FROM MCI, SPRINT
Time Warner Cable (TWC) announced it was rolling out Voice-over-Internet Protocol (VoIP) across its systems nationally with the help of MCI and Sprint. A spokesman said TWC could connect VoIP customers with one another, but it needed the help of traditional telcos to route calls through the Public Switched Telephone Network (PSTN) if it was to offer a truly national service in its 31 markets. This marks the first time a cable company has partnered with a telco on such a large scale. Although the companies said these were multiyear, multimillion-dollar agreements, no specifics were provided. TWC said it would pay MCI and Sprint for each line and then on a usage basis.
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TWC launched “Digital Phone” in Portland, Me., in May, and then to some customers in the Raleigh, N.C., area. Deals with MCI and Sprint will allow TWC to continue rollouts throughout next year, TWC said. TWC CEO Glenn Britt said the company would benefit from MCI and Sprint experience in telephony. Those carriers will assist TWC in providing Digital Phone, termination of IP voice traffic to the public switched telephone network, delivery of enhanced 911 service, local number portability and carrying long distance traffic.
The agreement also marks a major expansion for MCI and Sprint into the cable wholesale market. Paget Alves, pres.- strategic accounts, Sprint, said using his company’s plant “makes sense as an alternative to cable operators’ building their own voice infrastructure.” He said Sprint intended to expand the marketing of its telephony services to cable. Jonathan Crane, MCI exec. vp-corp. development & strategy, said the partnership “represents the next evolution in consumer communications -- leveraging the added capabilities of cable and the global reach of the MCI IP network to create services that leave the old public switched network behind.”
Digital Phone includes unlimited local, in-state and domestic long distance for a flat monthly price. A TWC spokesman said pricing still was to be determined, but he offered as a guide the current rates in Portland and Raleigh -- $39.95 for customers who get the video product and $49.95 for non-TWC customers. Consumers switching to Digital Phone can keep their existing phone numbers and retain their directory listings. Standard features of the service include 411 directory assistance, 611 service calls, enhanced 911 emergency service, operator-assisted calls, call waiting, caller ID and voice mail. The residential phone service connects to each telephone jack in the home through whole- home wiring.
TWC owns and manages cable systems serving 10.9 million subscribers in 27 states. Its spokesman said there was no rollout schedule yet, but it would be “pretty wide” next year. Sprint will help TWC in 17 of its markets and MCI in the other 14.