& cplSiteName &

Can Cable Conquer Europe's B2B Sector?

Ray Le Maistre
3/8/2013
50%
50%

LONDON – Cable Congress 2013 -- Europe's cable operators have a number of opportunities to build on the collective revenue growth they experienced in 2012, according to Ewan Mackay, managing director for the Cable Industry, EALA (Europe, Africa and Latin America), at Accenture. (See Cable Operators Boast Euro Growth.) The region's cable players have built a good networking foundation on which they can develop and deliver additional revenue-generating services, with the "connected home" and business services two key niches that have significant potential. Mackay tells Light Reading Cable that the business-to-business (B2B) sector is "the forgotten arm" of the industry and one where the region's cable players can capitalize on pent-up demand from the small and medium-sized businesses. While U.K. operator Virgin Media Inc. has focused on that market with its Virgin Media Business Ltd. operation -- it generated revenues of £670 million (US$1 billion) in 2012, about 16 percent of total revenues, from its backhaul, Ethernet and voice services and contributed 40 percent of Virgin Media's full-year growth -- other European operators have not been as focused. "It's time to embrace B2B," says Mackay. "The cable operators can build on the success they have had in the consumer sector and take that into business services. They can take the experience of how they have segmented their consumer customers, using business intelligence [tools] and social media interaction, and take that into B2B." There is "latent demand" in the SMB and local authorities/government sectors that the cable players can tap, believes the Accenture man. In the "connected home," he believes cable operators have the infrastructure in place to deliver automated applications over consumer home networks, but he notes that the cable players have yet to make any concrete decisions about whether to tap into this potential market or decide exactly how they might do that. "They're on a watching brief … they need to decide whether they should develop the connected home applications themselves or be the aggregators for third-party applications," states Mackay. More broadly, he notes that Europe's cable operators have done well to counter the potential threat of the OTT service providers by enhancing their own services options using platforms such as TiVo Inc. and multimedia home gateways that deliver video applications such as YouTube and Netflix Inc. as well as the operators' own services. "The big question is -- how dominant might those OTT services become on the cable networks?" asks Mackay. He also notes that the region's cable players are now much more focused on customer experience issues than before. "In my interactions with the operators there's a real focus on the end-to-end relationship between the service provider and the customers," including the use of social media channels such as Facebook and Twitter to interact with end users. "Those conversations weren't happening at all three-to-five years ago." — Ray Le Maistre, International Managing Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
jtombes
50%
50%
jtombes,
User Rank: Light Beer
3/9/2013 | 4:37:13 PM
re: Can Cable Conquer Europe's B2B Sector?
SMEs account for 99.8% of non-financial enterprises in Europe, according to a report by consultancy Ecorys, delivered to Euro Commission last fall. Of that, 92.2% have < 10 employees. (Gotta love that statistical precision.) At the same time, business is still slow. Number of SMEs flat since 2007 and employment down since then. A few bright spots: Germany, Austria and possibly Malta grew in value and employment. Still overall a good scenario for a competitor. As I heard once heard a U.S. C-level exec describe his company's successful pitch to the SMB market: "Times sure are hard, aren't they? This would be a good time to cut costs, wouldn't it?..."
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
3/8/2013 | 5:56:00 PM
re: Can Cable Conquer Europe's B2B Sector?
MSOs in Europe should put more emphasis on biz-class services. Virgin Media's a great example, as Ray points out, but operators could learn a few things from the U.S. operators, which brought in about $7B in biz services revenue in 2012, and are growing it about $1B per year, according to Heavy Reading estimates: http://www.lightreading.com/ft...

If they are going to invest in growth projects, biz services is one they should be targeting posthaste. JB
Educational Resources
sponsor supplied content
Educational Resources Archive
Light Readingís Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
LIVE NOW!
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
UPCOMING COURSE SCHEDULE
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (1) comment


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
LRTV Custom TV
Huawei IP 2020 for Future Networks

11|11|16   |     |   (0) comments


Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
LRTV Custom TV
Digital Object Architecture

11|11|16   |     |   (0) comments


Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
LRTV Custom TV
BT's Openreach Has High Hopes for Long-Reach VDSL

11|11|16   |   06:04   |   (0) comments


Peter Bell, Network Portfolio CIO at BT's access business Openreach, talks about the operator's trial of a new broadband access technology called Long Reach VDSL.
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
AT&T Debuts DirecTV Now on New Video Platform
Mari Silbey, Senior Editor, Cable/Video, 11/28/2016
Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
Dan Jones, Mobile Editor, 11/30/2016
Altice Plans FTTH for Entire US Footprint
Iain Morris, News Editor, 11/30/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Samsung Bows to Investors, Considers Revamp
Iain Morris, News Editor, 11/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.