Light Reading

Cox Business Plots Path to $2B in Revenues

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

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        ADD A COMMENT
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
From The Founder
Then pick up your axe, put on your spandex trousers and get yourself down to Light Reading's Big Telecom Event (BTE). Kerrang!!!
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Between the CEOs
Ciena CEO: The Web-Scale Revolution

4|28|15   |   10:32   |   (3) comments


Light Reading CEO and founder Steve Saunders goes head-to-head with long-time Ciena CEO Gary Smith to discuss the impact of the web-scale players, the New IP and 'white box' networks.
LRTV Documentaries
Cox Eyes Cloud-Based Home Networks

4|27|15   |   05:30   |   (0) comments


Cox's Jeff Finkelstein explains how moving services to the cloud will let cable deliver services faster and eliminate constant hardware replacements.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
Eurobites: Nokia Quashes Handsets Rumor
Paul Rainford, Assistant Editor, Europe, 4/28/2015
Verizon Builds Key Vendors Into SDN Strategy
Carol Wilson, Editor-at-large, 4/28/2015
Why Is Verizon Fighting With Programmers?
Alan Breznick, Cable/Video Practice Leader, 4/28/2015
Astellia Highlights Customer Care Disconnect
Ray Le Maistre, Editor-in-chief, 4/29/2015
T-Mobile Beats Sprint on Subs, Eyes Verizon on Network
Sarah Thomas, Editorial Operations Director, 4/28/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders goes head-to-head with long-time Ciena CEO Gary Smith to discuss the impact of the web-scale players, the New IP and 'white box' networks.
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Cats with Phones
Working With What You've Got Click Here
"It's pretty hard to answer these things without thumbs!"