Cox Communications, the third largest U.S. cable television system operator, faces solving strategy in mid-2004. Cox managers must decide whether to accelerate its deployment of Voice over Internet Protocol (VoIP), which provides capital and operating cost savings over the traditional circuit-switched technology used to provide the Cox phone service. Cox has had great success in the attack of the phone companies with bundles that include television, high speed internet and telephone services. However, the deployment of VoIP will be capital-intensive, and Wall Street is putting pressure on Cox, like other cable operators to deliver free cash flow. At the same time, cable operators are losing market share to satellite TV providers, and Cox managers must decide whether to accelerate capital deployment of digital video recorders (DVR) to address the competitive threat. Cox can afford to offer both VoIP and digital video? Rewritten version of the previous case. "Hide
by Thomas R. Eisenmann, Jonathan Gibbons Source: Harvard Business School 29 pages. Publication Date: June 13, 2004. Prod. #: 804192-PDF-ENG
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