Light Reading

Cox Business Plots Path to $2B in Revenues

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
11/29/2012
50%
50%
Repost This

NEW YORK -- The Future of Cable Business Services -- Cox Business Services broke $1 billion in annual revenues in 2010 and aims to pass the $2 billion mark by the end of 2016, at the same time making life tougher for its primary telco competitors, namely AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ) and CenturyLink Inc. (NYSE: CTL).

During his keynote presentation here this morning, Cox Business Services senior vice president Phil Meeks talked delegates through the operator's plans, noting that the MSO's commercial services unit is on track to bring in $1.4 billion in revenues during 2012. (See Cable's Cut of the Biz Services Pie to Eclipse $7B .)

And Cox's strategy to achieve its goals is not complex: The operator's business services team will work on and execute just a handful of specific objectives. "If you're focused on everything, you're focused on nothing," Meeks said.

For starters, Cox, which has almost 300,000 business customers, will continue to focus on its core market -- businesses with 19 or fewer employees -- and expand its wholesale business (including mobile backhaul), which generates about 10 percent of the unit's revenues.

Meeks says Cox's cellular backhaul business has already peaked and is showing signs of slowing down. However, he says the company sees some potential upside from the budding small cell market.

Another key area will be serving "large locals," which primarily include universities, government and healthcare customers. Meeks says this piece is important because Cox is not a national provider, so it makes a lot of sense to pursue deals with businesses that are densely concentrated in Cox's regional footprints.

As a final component, the plan calls for Cox to expand its market opportunity by a net 10 percent by 2016.

Beyond 2016
Cox is also thinking about how its business services unit will evolve and change beyond 2016.

"It's critical that we move down that continuum of redefining the business to make the opportunity bigger," he said, noting that Cox Business Services "will look a lot different in 2017 than we do now."

Meeks said Cox will pursue a mix of ways to achieve that, including M&A, partnerships and organic growth. He declined to speculate on what M&A opportunities Cox might consider. As a side note, the FCC recently loosened some rules that will make it easier for cable operators to acquire competitive local exchange carriers (CLECs). So that avenue may be open to Cox, if it decides to pursue it. (See Cable Cuts a Clearer Path to CLEC Buys.)

Cox's business services future will also include cloud-based applications for SMBs that don't have IT staff or dedicated IT budgets: That focus is shared by other major MSOs. (See Bright House Snaps Up Cloud Services Specialist and TW Cable Buys Into the Cloud.)

— Jeff Baumgartner, Site Editor, Light Reading Cable

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:16:49 PM
re: Cox Business Plots Path to $2B in Revenues


Phil also talked about the idea of moving further up-market, but it won't be a core growth strategy , at least for the near future.  Pretty hard for the cable guys to provide a seamless national service when they are regional players. He mentioned that MSOs are doing multiple market deals, but a challenge is having a uniform OSS/BSS infrastructure and knowing whose throat to choke when something goes wrong.  The good news is that there's still lots of growth to pursue in that SMB area. JB

 


 

Flash Poll
LRTV Documentaries
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (7) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
LRTV Custom TV
VMware CEO Pat Gelsinger at Mobile World Congress

4|1|14   |   3:41   |   (0) comments


VMware CEO Pat Gelsinger speaks to Heavy Reading about the value of virtualization spanning from the data center to service provider networks to mobile devices.
LRTV Huawei Video Resource Center
Analysts' Impressions of Huawei SoftCOM at ONS 2014

4|1|14   |   1:11   |   (0) comments


After visiting the Huawei booth at ONS, Lee Doyle of Doyle Research gives his appraisal of Huawei's SoftCOM solution.
Hot Topics
BlackBerry Invests in Healthcare IT Startup
Sarah Reedy, Senior Editor, 4/15/2014
Volvo: AT&T HSPA+ Can Drive My Car
Sarah Reedy, Senior Editor, 4/16/2014
T-Mobile Petitions Operators to Kill Overages
Sarah Reedy, Senior Editor, 4/14/2014
Cisco & VMware Are Apple & Google of SDN
Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/14/2014
Mobile Apps Susceptible to Heartbleed, Too
Sarah Reedy, Senior Editor, 4/14/2014
Like Us on Facebook
Twitter Feed