Posted by Mae Kowalke on Thursday, January 26, 2017 with No comments
Encouraged by their success serving the small and medium-sized business market with connectivity services, cable operators are now setting their sites on a bigger prize: enterprises—notes Alan Breznick, Cable/Video Practice Leader at Light Reading, in a new white paper (sponsored by Accedian).
During the past 10 years, Breznick explains, cable operators have made inroads into the SMB business services market, capturing up to 20 percent of commercial telecom market services revenue.
The 6 largest U.S. MSOs (Comcast, Time Warner Cable, Cox Communications, Charter Communications, Cablevision Systems—Lightpath, and Suddenlink Communications) collectively generated more than $12 billion in business services revenue last year. That total is rising about 20 percent annually.
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Now, cable operators are now setting their sights on the business services enterprise market. Assets that help MSOs on this quest include:
- Hybrid fiber-coaxial (HFC) networks in most geographic markets
- Substantial fiber rings in metro areas
- Strong fiber concentration in their access networks
- Tight focus on 4-5 main vertical markets with experienced sales teams
- Growing portfolios of managed services and other enterprise products
- Enthusiastic embrace of Ethernet and other newer technologies
- Considerable experience deploying operationally efficient residential services
- Aggressive pricing approach
- Ability to offer various connectivity options as enterprise apps migrate to the cloud, meeting demand for faster, cheaper, links
[click image to enlarge]Read the full white paper for a more in-depth look at the U.S. cable operator business services market, and watch our blog for further posts in this series.