ime Warner Cable has decided its time to leave Sprint’s services behind and strike out on its own with voice service. While cable companies have long had wholesale agreements with certain carriers, as competition heats up some are looking for ways to bring these lucrative services in house.
A report by Craig Moffett of Bernstein Research revealed that Sprint’s contract with Time Warner Cable “equates to about $5 per subscriber per month in unadjusted earnings, or about $249 million a year.” TWC has over 4 million subscribers using the Sprint system for digital voice service.
Time Warner Cable spokesman Justin Venech would not confirm the exact date when this transition will be completed or what TWC pays Sprint for this service, but some sources say it will be within the next four years. “It improves our economics, but it will take several years to complete,” Venech said.
zacks.com: TWC to Offer VoIP Independently.
