Time Warner Cable VoIP, Broadband Growth Slowing

Is the triple-play party winding down for cable operators? Time Warner Cable reported today that broadband and Internet phone growth slid even more last quarter. The New York-based cable giant finished Q2 with 7.19 million residential broadband subscribers and 2.34 million Internet phone customers. Both represented substantial year-over-year gains: broadband subscribers jumped 55% from last year and Internet phone subscribers increased 60% — good news. But growth is slowing in each category, especially Internet phone:

Time Warner Cable Digital Phone Subscriber Growth (year-over-year)
2Q07: 60%
1Q07: 67%
4Q06: 86%
3Q06: 114%

TWC noted that the second quarter is a traditionally slow period as college students and vacationers cancel subscriptions for the summer. And there is still plenty of room for growth — a third of U.S. households that use the Web are doing so via dialup, says Sanford Bernstein’s Craig Moffett, and TWC says just 12% of customers who could use its phone service are doing so now. But cable’s competition is only going to increase as telcos like Verizon and AT&T ramp up their digital TV service and wireless companies like Sprint Nextel and Clearwire sell wireless broadband.

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