While I typically stick to discussions of policy issues, broadband, and emerging technology, when I see some really good news about cable and our ongoing efforts to improve customer service, I have to talk about it.

Recently JD Power and Associates released their annual rankings of customer satisfaction with both local and long distance telephone service.  The rankings measure five factors to determine overall satisfaction.

• Customer service
• Performance and reliability
• Cost of service
• Billing
• Offerings and promotions

For the the second year, cable companies won all four regions. The latest study proves what we’ve said for some time - cable is your best value for telephone service. You can learn more about cable telephony here.

On Friday morning, Tom Tauke took to Verizon’s blog to post thoughts on the rumored FCC decision reversing the bureau’s suggested dismissal of cable’s complaint about the telco’s “retention marketing”.  NCTA President Kyle McSlarrow drafted a response here and on Verizon’s blog.  The back and forth went on late into the night with Kyle posting his final word after 8pm.

Due to the relatively unprecedented nature of this direct, and public, debate between major industry players, a lot of people took notice.

Sidecut Reports called it a tussle that only telecom policy wonks could love.

Maybe it’s a tussle that only telecom policy wonks could love, but if you are at all involved in the regulatory sphere you’ve just got to love that the battle of the corporate titans has now moved, Web 2.0 style, into the blogosphere, with Verizon and the Cable companies now using blogs to take pokes at each other…  If you are really interested in the argument, follow the links and join the conversation. We are going to spend the rest of the day worrying whether or not direct competitor blogging means that pundits are out of a job — again!

From the Technology Liberation Front:

Verizon’s Tom Tauke and NCTA’s Kyle McSlarrow take to fisticuffs in their comments (well worth reading and remarkably… candid) on the Verizon Policy Blog after Tom asked “Will Cable and FCC Thwart Consumer Choice?”

Dave Zatz at Zatz Not Funny writes:

In the talking typing heads policy battle currently raging across the blogosphere, I hereby declare the NCTA as winner. I actually have very little interest or knowledge of the topic at hand, however there can be only one… and Verizon’s lobbyist is still ending sentences with two spaces, while Cable’s lobbyist linked his rival’s blog. (Bonus 1/2 point to Cable for using WordPress, though they haven’t upgraded to 2.5.* yet.)

Perhaps the most salient point, and possibly the briefest, was made by Insight Communications CEO (and NCTA Executive Committee Member) Michael Willner (a blogger himself) after Tom and Kyle suggested taking the debate offline.

NO! Resist going back to the old Washington ways!! Don’t settle this in a beltway gin mill. This is the 21st Century and we all want a front row seat!!

We wouldn’t consider it.  When Kyle launched this blog, he spelled out its purpose clearly.

But we didn’t start this blog just to tell you all that. We launched this blog to talk about telecom policy. Today’s vibrant public policy discussions are driven by conversation and debate taking place online, so we hope this blog will contribute to that dialogue. We’ll be talking about proposed legislation and regulation at the federal, state, and local level. We’ll voice our support for changes that would lead to a better, more competitive technology landscape. When we think legislation is unnecessary or detrimental, we’ll talk about that, too. And, while we will certainly express our views, our goal is to have a dialogue… So, we’ll… invite people with whom we may not agree to engage in debates across their blogs and ours. We’re looking to cross post ongoing exchanges in an effort to provide you with the kind of information that helps you decide for yourself.

This was obviously an example of that, but this is only one salvo in a much broader and ongoing discussion and debate over telecom issues.  Keep your eyes peeled, there’s more to come.

(On two sidenotes, you can find NCTA’s statement on the FCC Decision here.  A sidenote to Dave Zatz: We’re big fans of WordPress, but haven’t upgraded due to a dependency on one plug-in that hasn’t yet upgraded.  Hopefully we’ll find a 2.5 compatible plug-in soon.  I’m working on it.)

As mentioned previously, each week on the front page of NCTA’s website, we highlight a relevant statistic. This week’s is worth taking note of.

With the five largest cable operators having reported results for the first quarter of 2008, there are now 16.2 million customers receiving phone service from the cable industry…

…and counting.

This is incredible growth if you look back over the past decade.

The cable industry has spent more than $100 billion since the Telecommunications Act of 1996 to create the most extensive and robust broadband network found in America. This robust technology platform now passes more than 117 million households with high-speed Internet Service, serves 65 million households with video services, and provides telephone service to 15 million customers.

Digital Phone

Consumers now have access to more competition than ever thanks to cable. Digital telephone service provides consumers with a true alternative to standard telephone service. While some cable operators have offered traditional circuit-switched telephone service for years, most are now offering digital phone service. This service often comes as part of a “bundle” where multichannel video, high-speed Internet and voice services are offered as a package and billed in a single invoice, providing a better value and more simplicity for customers.Through the use of software, digital phone service provides all the functionality of the public switched telephone network (PSTN), while making possible new features not available through traditional telephone service, such as Web portals that allows customers to review their calling history or listen to voicemail messages online when away from home. Digital phone service is a revolutionary technology that has the potential to completely change how phone calls are made and how voice services are used.

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There are many ways that the cable industry has expanded consumer choice. You don’t have to be that old to remember a time when you had maybe a half-dozen TV viewing choices - maybe a few more, maybe less - and now you probably have hundreds. Not that long ago, it was the same situation with the telephone.

A couple years ago, NCTA created a video to explain cable’s impact on America. Take a look and skip ahead about two minutes in. That image of the phone industry as stodgy is amusing because it was so true. Rotary dials, touch-tone, mobile phones - the pace of these innovations was pretty slow.

But today, consumers are finally enjoying true facilities based competition in local phone service. Cable’s service is reliable plus it offers many of the standard features for a great price. Generally, you get unlimited calls anywhere in the U.S., Canada and Puerto Rico. You get to keep your current home phones, wall jacks and phone number. Many operators include services like Call Waiting, Caller ID, Call Forwarding, Speed Dial, and so on. But you also see features like digital voicemail that can be accessed over the Internet from any location, and new features like Caller ID on the TV are beginning to be introduced in some communities.

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More than 15 million Americans have switched to cable’s digital voice service. One big reason that consumers are switching is the significant savings that can be found, especially if the service is included as part of a bundle that includes video and high-speed Internet.

In fact, in the past four years, consumers that have switched to cable phone service have already saved $23 billion. Evidence of that can be found in a study by Microeconomic Consulting & Research Associates, Inc. (MiCRA). The report, “Consumer Benefits from Cable-Telco Competition,” was first prepared in 2006 and then updated in November of 2007.

According to MiCRA, consumers and small businesses across the country have already saved $23.5 billion and may save a total of $111 billion on their phone bills over the next five years as a result of robust competition. MiCRA estimates that residential consumers could save an average of $144 or more each year, while small businesses could save 50-70% on their phone bills – although the projections conservatively assumed that small businesses would save about $240 each year.

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In 2007, J.D. Power and Associates’ annual rankings of telephone service provider customer satisfaction ranked cable companies #1 in customer satisfaction in all six US regions. More than 15 million customers currently enjoy cable’s phone service, and it’s no wonder cable companies are signing up millions of new customers every year.

Cable’s telephone service often comes as part of a “bundle” where multichannel video, high-speed Internet and voice services are offered as a package and billed in a single invoice, providing a better value and more simplicity for customers.

Cable’s digital phone service makes possible new features not available through traditional telephone service - such as Web portals that allows customers to review their calling history or listen to voicemail messages online when away from home. Digital phone service is a revolutionary technology that has the potential to completely change how phone calls are made and how voice services are used.

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It’s worth noting that cable’s phone business has grown in a fairly short period of time. The current competitive age can be traced back to the passage of the deregulatory 1996 Telecommunications Act. Following that, the cable industry invested more than $100 billion in private capital to upgrade its network infrastructure in order to provide broadband services.

But even before today’s IP-based phone service, some operators took the plunge into phone. Back in September of 1997, Cox Communications launched circuit-switched phone service in Orange County, California. Comcast (via its acquisition of AT&T Broadband) also has a base of circuit-switched customers that were generated following the acquisitions by AT&T of TCI and MediaOne in 1999.

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