Cable Operators Offset Video Losses with Growth in Business Services

  • Insight Research Corporation
DURANGO, CO - US Cable and Satellite service providers are losing three quarters of a million residential video subscribers each year, but investors are not panicking, as the losses are offset by growth in broadband and business services. According to a new market research study from The Insight Research Corporation, US Cable MSOs are on track this year to reach $8.8 billion in annual revenues providing telecommunications services to small and medium-size businesses, despite competition from entrenched telco providers, who have owned this segment for the past thirty years.

Insight Research's market analysis study, "Cable TV Operators, Telecom Services, and the Push into the Enterprise, 2013-2018" provides an optimistic view for cable providers, who have been touting the business services market as a profitable alternative to their mature residential video business. Next to wireless services, business services is the second largest segment in the $500 billion US telecommunications landscape. Cable operators have demonstrated double-digit revenue growth in business services over the past few years, while their market share is approaching ten percent.

"Cable companies continue to demonstrate strength in leveraging their existing HFC networks and in providing new business services, such as mobile backhaul, Wi-Fi access, and Ethernet services," says Fran Caulfield, research director at Insight Research. "Our research also shows that they continue to take market share from the entrenched telco providers, who have yet to become aggressive with pricing, investment, and quality in defending their market position," Caulfield concluded.

"Cable TV Operators, Telecom Services, and the Push into the Enterprise, 2013-2018" provides business revenue estimates for cable and telco operators, including voice, data, and video services offered to small, medium and large enterprise business segments. Detailed revenue estimates are provided for a range of business services, including Ethernet, private lines, voice services, web hosting, optical transport, and video.

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