Light Reading

Cable's Cut of the Biz Services Pie to Eclipse $7B

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner

NEW YORK -- The Future of Cable Business Services -- U.S. cable's share of the business services market continues to grow at a rate of at least $1 billion per year and is on pace to eclipse $7 billion in 2012, according to the latest forecast from Heavy Reading . That's one of the key stats presented here this morning by Heavy Reading Senior Analyst Alan Breznick as he kicked off the fifth-annual Light Reading Live! event dedicated to the cable industry's commercial services efforts.

Cable's cut this year is about 14 percent ahead of last year's total, which came in at about $6 billion. Breznick expects domestic cable operators to increase their total in the category by at least $1 billion per year for the next few years. (See US Cable Firms to Bank $6B in Biz Services.)

Here's how the year has stacked up so far for some of the nation's major cable operators:

Breznick admits that his forecast is somewhat "conservative" considering that Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. (NYSE: TWC), the nation's two largest cable operators, have seen a growth rate in the range of 30 percent to 40 percent per year.

Comcast, for example, is already on pace to break $2 billion this year and flirt with $3 billion in 2013. Comcast's third-quarter business services revenue totals – the first in which the MSO broke the $600 million mark in the category -- would already put it on an annual run-rate of at least $2.5 billion. (See Comcast Makes Hay With Metro Ethernet .)

"There's no sign of a slowdown yet" for cable commercial-class services, Breznick said, noting that the bulk of those revenues are still originating from businesses with fewer than 20 employees.

And there's still plenty of untapped potential. Small- and mid-sized businesses alone spend $50 million to $70 million on data, voice and video services, so cable's still only managed to get 5 percent to 6 percent of the available haul, according to Heavy Reading. The nation's hybrid fiber/coax (HFC) networks, meanwhile, already pass more than 75 percent of these SMBs.

Cell backhaul services also remain on the rise for the cable guys. For U.S. MSOs, revenues from that segment will reach about $600 million this year, and approach $900 million by 2015, according to Breznick. Still, there's some debate that growth in this area could start to flatten out based on the available contracts.

"But I don't think they're nearing the ceiling on this at all," Breznick says. "The numbers aren't showing that yet. But a lot of that [future growth] will depend on what cable can do with small cells."

Covering all the facets
Breznick's market overview sets up a day-long, in-depth dive into many other facets of cable's business services strategies, including panels addressing advanced voice services, emerging cloud-based services, and a look at how MSOs are using carrier Ethernet and other tools and technologies to move up-market and target larger business customers.

Among the highlights will be keynotes from Cox Business SVP Phil Meeks, Comcast Business Services SVP and GM of New Business Solutions Kevin O'Toole; Rogers Business Solutions VP of Carrier Services Andy Striegler; and MainSpring360 Partner Will Jones.

We'll have more coverage from the event, including LRTV interviews, throughout the day.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
The comms industry is rallying to the cause of open, independent interoperability testing.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Interviews
Top Tips for FTTH Operators

10|8|15   |   02:26   |   (0) comments

At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
LRTV Interviews
M-net Calls for FTTx Unity

10|8|15   |   03:45   |   (0) comments

At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (1) comment

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
LRTV Interviews
Network Security in a Gigabit World

10|6|15   |   05:52   |   (0) comments

Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
LRTV Documentaries
Telefónica: In Search of Virtual Simplicity

10|5|15   |   07:30   |   (0) comments

Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
LRTV Interviews
Gigabit Europe Takeaways

10|5|15   |   03:47   |   (0) comments

Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
Women in Comms Introduction Videos
Intel Urges Women to Take Advantage of Their Seat at the Table

10|5|15   |   4:27   |   (1) comment

Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
LRTV Interviews
BT Updates on Plans

10|2|15   |   03:16   |   (2) comments

Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
Telecom Innovators Video Showcase
Sonus Shakes Up SD-WAN

10|2|15   |   7:22   |   (0) comments

Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
LRTV Interviews
CityFibre's Gigabit Vision

10|1|15   |   03:18   |   (1) comment

Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
Hot Topics
Eurobites: Dunroamin'
Paul Rainford, Assistant Editor, Europe, 10/2/2015
M&A Speculation Swirls Around Juniper
Ray Le Maistre, Editor-in-chief, 10/6/2015
Cisco's Chambers Rules Out Political Bid
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
Infinera Fleshes Out Its Metro 100G Story
Ray Le Maistre, Editor-in-chief, 10/7/2015
AT&T Gets Green Light for VoWiFi
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/7/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
"What?! I'm on with Finisar about their stock price tanking" Click Here