Wednesday, August 2, 2006

Sprint Nextel Expands VoIP Business with Time Warner Cable

Sprint Nextel has been selected to help provision Time Warner Cable's Digital Phone service in an additional 14 service areas. Under the five-year deal, which significantly expands the existing relationship between the companies, Time Warner Cable will soon utilize Sprint Nextel's IP Network to offer VoIP service across most of its footprint of approximately 28 million homes-passed, except for Time Warner Cable's systems in New Hampshire and Maine. Sprint Nextel will carry long-distance traffic for Time Warner Cable residential customers and provide turnkey telephone services such as 911 services,
relay systems and operator services. Financial terms were not disclosed.

Sprint Nextel said it now serves cable companies with a total of more than 1.2 million VoIP subscribers across more than 1,100 rate centers. Over the next year, the company expects to provide cable telephony wireline services to cable companies serving over 2.5 million subscribers.

  • In November 2005, Sprint Nextel, Comcast, Time Warner Cable, Cox Communications and Advance/Newhouse Communications outlined their plans to form a joint venture to offer "Quadruple Play" services -- video entertainment, wireline voice, and wireless voice and high-speed data services. The joint venture, which is mutually exclusive for three years and has a 20-year term, calls for a combined initial financial commitment of $200 million, $100 million of which will be committed by Sprint and $100 million of which will be committed collectively by the cable companies. The investment is expected to be used to fund the development of the converged services, national marketing initiatives and back office integration.

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