Comcast forecasts big phone drop before VoIP launch
By Vince Vittore
Telephony Online.com,
Jul 28 2004
Though Comcast reported good overall results, the nation’s largest cable telephony operator is forecasting a significant drop in both voice customers and revenue before it launches voice-over-IP service next year.
In the second quarter, the company reported a net loss of 20,000 phone customers to 1.23 million subscribers. Just as important, John Alchin, executive vice president, co-CFO and treasurer, said the company anticipates losing that same number on a quarterly basis throughout the rest of the year. As a result, instead of gaining 50,000 net phone customers in 2004 as it projected at the beginning of the year, Comcast is anticipating a loss of about 100,000 customers.
On a revenue basis, Comcast reported a 13.8% quarterly drop as it continued focusing on the profitability of the business and not on unit growth. Indeed, the one positive number the company reported was a slight increase in phone revenue per user, up to $47.71 in the second quarter from $47.34 in the first quarter.
Comcast is currently testing VoIP in three markets and said its results are meeting expectations. |
