Light Reading

Comcast Makes Hay With Metro Ethernet

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
10/26/2012
50%
50%

The decision by Comcast Corp. (Nasdaq: CMCSA, CMCSK) to move up-market to serve mid-sized businesses with more than 20 employees appears to be paying off, as the category now represents about 15 percent of the company's business services revenues.

About 15 percent of the total $621 million generated by business service customers (so, about $93.15 million) in the third quarter came from mid-sized businesses, company Vice Chairman and CFO Mike Angelakis said on Friday's earnings call.

Comcast uses its Docsis network to serve business customers with fewer than 20 employees, still the category of business user that generates the majority of Comcast's business customer sales.

The operator's Metro Ethernet strategy started to take some real shape in 2010, with Juniper Networks Inc. (NYSE: JNPR), Cisco Systems Inc. (Nasdaq: CSCO) and Ciena Corp. (NYSE: CIEN) as key suppliers. Comcast is also targeting businesses with up to 250 employees with a new hosted PBX service. (See Comcast Hones 2-Pronged Business Attack, Comcast Chases Big[ger] Business , Ciena, Cisco & Juniper Get Piece of Comcast's MetroE and Comcast Rolls Business Voice Into the Cloud.)

Comcast's business services revenues were up 34 percent year-over-year, giving it $1.74 billion through the first nine months of 2012, putting it on pace to easily exceed the $2 billion mark for the year. Comcast has long stated its belief that the SMB and the small enterprise markets are each $15 billion business opportunities.

X1 update
Comcast has launched its next-gen video service, X1, in four markets (Atlanta and Augusta, Ga.; Boston; and Chattanooga, Tenn.), with two "major markets" set to launch in the next couple of weeks, said Neil Smit, president and CEO.

The X1 service is generated by a hybrid QAM/IP platform that is targeted to high-end bundled customers and features the company's new cloud-based interface and access to a handful of new interactive applications.

Comcast isn't identifying where X1 is going next, but Denver and the company's Freedom Region -- a cluster of systems that serve greater Philadelphia, New Jersey and northern Delaware -- are among the markets that could be next in line. (See Where Will Comcast's X1 Land Next? and Comcast's Cloud TV Service Rolls Into Atlanta.)

Smit did not take the bait when an analyst asked if Comcast might be in a position to actually add, rather than lose, video customers in the fourth quarter, noting only that the company is "focusing on execution."

Comcast lost 117,000 video subscribers in the third quarter, fewer than the 165,000 it lost in the same quarter a year earlier. (See Comcast Spectrum Sale Boosts Q3 Profit.)

— Jeff Baumgartner, Site Editor, Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:18:34 PM
re: Comcast Makes Hay With Metro Ethernet


And not too surprising. They got into this a lot later. It will be interesting to see how that leaderboard looks a year from now. And per Jonathan's post, here's what he's referring to -- the mid-year 2012 US biz Ethernet leaderboard.   JB


 


 

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 5:18:34 PM
re: Comcast Makes Hay With Metro Ethernet


Despite Comcast's scale, still not on the top-eight Leaderboard for Ethernet ports in U.S. that Verical Systems published a few months back. (Only two MSOs, Cox and TWC, made it.) 

Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
Huawei's Power Play With GrupoGiro

4|1|15   |   2:51   |   (0) comments


Daniel Heredia, CEO of Energiro, the power management services part of Spain's Grupo Giro, explains why his company has just struck a partnership with Huawei for uninterruptible power supply products and how he hopes it can take the partnership into other markets.
LRTV Huawei Video Resource Center
Huawei Intros Smart Device for eLTE

3|30|15   |   05:25   |   (0) comments


Huawei has developed a secure, location-aware multimedia smartphone for its eLTE trunked radio solution, says Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Win Video, Win All

3|30|15   |   06:44   |   (0) comments


Video is going to be the next main source of revenue for operators. Operators have big opportunities and advantages to monetize video services. Globally, Huawei has helped more than 70 operators achieve over 30 million video subscribers. Watch this video for more.
LRTV Custom TV
The Benefits of HyperScale Clouds for NFV

3|27|15   |   01:50   |   (0) comments


Hyperscale cloud has been developed by the Internet giants to support the creation and delivery of software-based services at blistering speeds, and at the lowest possible cost. The original ETSI NFV vision was to adopt hyperscale cloud architecture and practices. This vision has become somewhat obscured along the way, due to misunderstandings about the hyperscale ...
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (9) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
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
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
More and more traffic is traveling within data centers, and operators need new networking approaches to manage this growth. Pica8's infographic shows how operators can confidently and painlessly deploy white box switches into existing networks today and leverage the benefits of SDN.
Hot Topics
AT&T Woos SMBs With Small-Scale WiFi
Sarah Thomas, Editorial Operations Director, 3/26/2015
Just Don't Say IBM Is 'Relaunching' Networking Business
Mitch Wagner, West Coast Bureau Chief, Light Reading, 3/26/2015
TV Everywhere Nears Mainstream Adoption
Mari Silbey, Independent Technology Editor, 3/27/2015
Carriers Are Bright Spot in BlackBerry Q4
Sarah Thomas, Editorial Operations Director, 3/27/2015
Comcast Says TWC Deal Will Close Later
Mari Silbey, Independent Technology Editor, 3/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.