Comcast VoIP Revenue Up 44 Percent in Third Quarter

Comcast phone revenue increased 44 percent in the third quarter of 2008, though the pace of net additions has slowed.

Comcast executives say they are confident they will be able to add over two million new phone customers this year, though.

"Just to put a point on it, I think what we are talking about is marginally less net adds, so instead of 550,000 phone ads, it’s 450," says Comcast COO Stephen Burke.

"In terms of small and medium-sized business, I am getting very optimistic about this business," Burke adds. "The revenues grew 42 percent year over year."

Comcast added about one additional percentage point of phone service penetration in the third quarter, which now stands at 13.3 percent of homes passed. Comcast also has some markets with penetration in excess of 20 percent.

VoIP services should be in service in about 8.5 million more U.S. households over the next two years, growing about 14 percent annually, according toPike & Fischer.

The number of VoIP-connected households in the United States will approach 30 million by the end of the decade, generating more than $11 billion in revenue for cable operators, telephone companies and network-independent providers Pike & Fischer predicts.