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                                          cable modem  services retain an advantage in high-speed lines. From  approximately 63% of broadband services provided by telcos and cablecos in 2002, cable modem services still accounted for 56% of  these services five years later. Cable-provided broadband simply  "took off" faster than telcos' DSL services, in large part  because cable companies had competitive incentive to do so. 
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                                         In 2007, VoIP customers accounted for more than 90% of the cable industry's growing base of telephony subscribers.  | 
                                       
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                                        VoIP’s influence has been felt  throughout the cable industry. For example, from 2006 to 2007 Charter  more than doubled its voice  
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                                  | Figure 2:
                                       High-Speed Data  Lines (over 200 kbps in at least one direction) 
                                        by Technology,  2000-2007 (millions of lines) 
                                      
                                    Source:  NPRG, FCC  | 
                                 
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                                     VoIP as A Third Service--And A  Cut Into the Telcos' Revenue Base 
                                    By year-end 2005, the number of  cable VoIP subscribers exceeded cable TDM subscribers, and the gap  will only continue to widen (see Figure 2). Cable companies are  actively migrating customers to their next-gen IP networks,  accelerating the trend. In 2007, VoIP customers accounted for more  than 90% of the cable industry's growing base of telephony  subscribers.                                      |    | 
                            
  
                                
                                  
                                    
                                      
                                        subscribers. Likewise, Time Warner Cable  reported 57% voice revenue growth over the previous year—a figure  the Company credited to strong customer demand. 
                                          Business Customer Segment:  Working Progressively Upmarket 
                                          Historically, cable companies have  focused on the residential segment—consumers of their core video  services. More recently, the focus has shifted to include  “business-class” 
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                                | Figure 3:
                                   Cable Companies’  Voice Customers 
                                    VoIP vs. TDM,  2005-2007 
                                    (total subscribers) 
                                    
                                          
                                       Source:  New Paradigm Resources Group
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