A new PricewaterhouseCoopers study advises cable companies to move quickly to capitalize on the two-year advantage they currently have on telephone companies, in terms of delivering triple-play service over a broadband network.

This most recent report echoes what others have been saying--namely Forrester Research in its "The Battle for the Digital Home" report, issued earlier this month, and Comcast Chairman Brian Roberts in his most recent public statements. There seems little denying the fact that cable networks are up and running and capable of delivering today what the telcos are promising for next year or the year after.

So what, if anything, will derail the cable juggernaut? Here are a few possibilities:

1. Poor customer service: The cable industry has come a long way from its days as the whipping boy of consumer complaint. But as services get more complex, it won't take much to irritate the masses, especially if voice service doesn't live up to expectations. The delicate balance here is to invest enough to keep customers happy without destroying profit margins. Web-based self-service portals are a great idea, but the telcos lead in that arena.

2. Price pressure: The one significant downside of a service bundle is that customers write one whopping check per month to one company and that can make them more price sensitive than before. The telcos have shown themselves willing to cut prices for competitive advantage.

3. Regulatory changes: The first Communications Act lasted for 62 years, but the most recent one is out of date in less than 10 and due for a rewrite. Somewhere, diabolical telecom lawyers are plotting, no doubt.

4. Telco innovation: Stop laughing, I'm serious. The real key to winning customers will be ease-of-use as well as additional functionality. Some, including Schlader, think the telcos have a leg up over cable in the innovation arena, and this could be their focus.

5. Wall Street's continued ignorance: The investment community apparently doesn't read industry reports or USA Today, where the PricewaterhouseCoopers study debuted. If stock prices don't mirror reality, cable's opportunities could be unnecessarily limited.

Frankly, I think 2005 will be the year cable either proves it's ready to put major distance between itself and the telephone industry in the battle for the triple play or it fails to do so. A year from now, as services such as integrated messaging move into the market, the telcos could reassert themselves dramatically.

Email me at cwilson3@primediabusiness.com.