Light Reading
Cox will focus on four key areas to hit its next revenue goal in 2016 and set the stage for other growth strategies, including acquisitions

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
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 Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Now Google Planning Drones-to-Go
Dan Jones, Mobile Editor, 8/29/2014
Music to My Mobile
Sarah Reedy, Senior Editor, 8/28/2014
Be Open to the Freedom of Openness
Kelly Herrell, 8/29/2014
Netflix to FCC: Kill Comcast-TWC Deal
Alan Breznick, Cable/Video Practice Leader, 8/28/2014
Like Us on Facebook
Twitter Feed