Light Reading
MSO business unit will deliver Ethernet, HDTV and voice service to seven Midwestern hotels

Comcast Snares Hotel Deal

Alan Breznick
5/15/2013
50%
50%

Feeling quite hospitable after a strong first quarter, Comcast’s business service unit is delving deeper into the hotel market. Comcast Business announced a deal late Tuesday with Raymond Management Company, a Midwestern hospitality real estate developer and management firm, to supply data, voice and video services to seven hotels in the greater Chicago area and Ann Arbor, Mich. The contract covers about 1,000 rooms across the seven hotel properties. Financial details were not disclosed. Under the pact, the MSO’s Comcast Business Hospitality unit will provide the hotels with an integrated package of voice trunking, Ethernet-based Internet and HDTV services for their guests. Like such fellow MSOs as Cox Communications, Comcast recently launched the hospitality division to move more aggressively into the promising hospitality services market. (See Comcast Checks Into New Revenue Stream.) LodgeNet, the largest incumbent player, has dominated the hospitality market for years. But with LodgeNet just emerging from Chapter 11 bankruptcy reorganization in March and hotels scrambling to upgrade their services and capacity for business travelers and vacationers, competitors see opportunity. Raymond Management executives, who run 28 Midwestern hotels under such well-known brands as Hilton and Marriott, said they chose Comcast because they were seeking a way to deploy high-capacity Internet, voice and HDTV from one vendor. In particular, they wanted one supplier for multiple properties. The deal caps off a strong period for Comcast’s business unit. In a report issued earlier this week by Infonetics Research, Comcast Business ranked as the top provider of hosted VoIP services for the second year in a row, beating out 8x8, Verizon Communications and West. Plus, two weeks ago, Comcast reported that its business services arm raked in a record-high $741 million in revenue during the first quarter. That puts the MSO on a pace to reach, or even clear, the $3 billion mark for commercial services revenue this year. (See Comcast Mines Business & Home Services.) Why This Matters While it’s relatively small, this hotel deal matters not just because it will generate more business services revenue for Comcast. What’s really notable is that it marks an incursion by a large MSO into a major new vertical market. Up to now, most cable operators have focused their business services efforts on four main verticals -- financial services, government agencies, educational institutions and health services. This deal also matters because it shows how Comcast and other MSOs can leverage their growing expertise in Ethernet services to capture more midsize businesses (firms with 20 to 250 or more employees). Riding the early success of their flagship Metro Ethernet service, Comcast officials say the middle market now generates about 15 percent of their total commercial services revenues. — Alan Breznick, Cable/Video Practice Leader, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive