Time Warner Cable is taking aim at Verizon's biggest market, rolling out Internet telephone service, or VOIP, in the New York and New Jersey area. During the initial launch, the service is being offered to employees and selected customers.
The service will cost about $40 to $50 a month, the company said. Time Warner already offers VOIP in 15 markets and is testing it in another seven. The company says it expects that VOIP will be rolled out to all its markets by the end of 2004.
Cable operators are rushing to offer what's known as the competitive "triple play" - bundling TV, high-speed Internet and phone service all onto a single bill, on the theory that customers with multiple services are less likely to switch to another company.
Local telephone companies are doing the same. They're teamed up with satellite television providers EchoStar (DISH) and DirecTV Group (DTV) to offer a three-way bundle.
Verizon offers VOIP service, VoiceWing, nationwide for $30 to $40 per month.
Time Warner's offering is pricier than most other companies. Cablevision, for example, offers VoIP for $30. Vonage, an independent, has recently cut its price to $25.
