Light Reading
Can service providers afford to neglect small businesses in a FTTx, 4G world?

Time to Get Smart About SMB Services

Ray Le Maistre
7/14/2014
50%
50%

A report published today highlights how small businesses -- in this instance, in the UK -- feel they are being short-changed in the broadband economy, either because they are not being offered decent connectivity, or they're being offered services that, when available, are often too expensive. (See Small UK Firms Left Stranded by ISPs – Report.)

The report was mostly negative about the services on offer, the pricing, the attitude of ISPs, the state of Government financial support, and so on. And that's not so surprising, given that the report was published by the Federation for Small Businesses (FSB), with all its vested interests.

But the FSB, in its detailed, 52-page report does make a decent case in many respects, especially when it comes to the dire way in which the UK government has handled broadband initiatives and funding: The UK government pays a lot of lip service to the digital economy, but often (as is the case with many governments and political parties) fails to show any true understanding of how global economic operations need to be supported or what the real needs of businesses and individuals are in the modern world.

But while some things are unlikely to change -- politicians will no doubt continue to be largely clueless about anything that doesn't directly affect them -- the capabilities of communications service providers have changed. For as long as I can recall, small businesses have felt they are not catered for by fixed and mobile operators and the local communications specialists that sell them services packages. Often that was because of the technical and operational limitations of the service providers, restricted to costly fiber rollouts and/or low-bandwidth wireless delivery platforms for the delivery of uninspiring and restrictive services packages.

But times have changed, haven't they? Fixed and wireless broadband (4G LTE, WiFi and even satellite) services are now more pervasive, the ability to sweat the installed copper tails of the fixed-line networks is now greatly enhanced by VDSL2 and new emerging standards such as G.fast, and there are many business-oriented applications that can be enabled across a vanilla broadband connection, while tiered packages of unified communications and cloud services are now more easily provisioned for all types of customers, including even the smallest of businesses. Right? RIGHT?!

In the UK, the small business market has long been the preserve of national operator BT Group plc (NYSE: BT; London: BTA): The arrival of 4G and the increasing availability of mobile-enabled data services provides a much greater opportunity for the mobile operators to launch a real challenge to the incumbent, and certainly EE , Telefónica UK Ltd. (O2), and Vodafone UK have all been making moves targeting the SMB sector lately.

The FSB report suggests that such moves will take time to make any impact, if they move the needle at all -- this isn't the first time that service providers have boasted of new, resource-heavy assaults on the SMB market. But there is still real market potential: Delivering a decent broadband connection to a remote, rural business is undoubtedly going to be a real challenge for any service provider for a long time to come, but it seems there are plenty of small businesses in urban and semi-urban areas (according to the FSB report) that are still underserved, and that's where much of the 4G LTE rollouts are focused.

In addition, the emergence of 4G is coinciding with the interest in the Internet of Things (IoT) and the potential for urban authorities to enhance their business communities by launching 'smart city' initiatives, which need broadband infrastructure as the underpinning infrastructure.

In a services industry that is constantly searching for new revenue streams, one of the oldest and potentially largest markets -- delivering tiered communications services to small and medium-sized businesses -- still looks ripe for the picking. The FSB report is all about the UK market, but this just highlights the potential that exists in many developed markets, all of which show the same trends of pressurized incumbents, enhanced, mobile broadband, growing cloud service availability, and a disgruntled business customer base.

It's time for the communications service providers to get smart too and make big money from the small business market.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
7/15/2014 | 3:45:05 PM
Re: Time to Get Smart About SMB Services
@FakeMitchWagner, exactly.  We need new and better models of public/private partnerships.  Local government, in particular, can play a positive role in partnering with industry, who better understands technology.
FakeMitchWagner
50%
50%
FakeMitchWagner,
User Rank: Lightning
7/15/2014 | 2:56:59 PM
Re: Time to Get Smart About SMB Services

Government not understanding technology is a problem on both sides of the Atlantic. One school of thought says, well, get government out of technology and business! But that's no answer at all. Because so much of the technology industry is a natural monopoly, government needs to be active. And it needs to be smart about 

DHagar
50%
50%
DHagar,
User Rank: Light Sabre
7/14/2014 | 8:21:09 PM
Re: Time to Get Smart About SMB Services
@Ray, great insight.  They are truly missing the market opportunity in developing communications connectivity through tiered communication services, as you point out.  Cities are stepping up and developing, or partnering, to provide broadband infrastructure; so it is only a matter of time where connectivity will be a utility.  Then the markets for the developing SMB market will make sense.

You are right that the FSB is a vested voice, but the issue is of greater value to regional economic development at large.
More Blogs from Shades of Ray
Experienced telecom editor Jason Meyers has joined the Light Reading team to focus on some of the hottest emerging sectors in the industry.
The open source NFV platform meeting in the Valley this week highlights some of the key shifts ongoing in telecom.
Did you see what happened when we mixed booze + balls at this year's Leading Lights awards party?
With 4G just getting into its stride, 5G is already a hot topic. But is it too early? I don't think so.
Flash Poll
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business – Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
LRTV Custom TV
Redknee Supports BH Telecom With Redknee Unified

7|2|14   |   6.14   |   (0) comments


Lucas Skoczkowski, CEO of Redknee, and Amir Orucevic, Director BH Mobile, discuss how the benefits of the Redknee Unified suite of products provide BH Telecom with innovation and leadership in the market, with the flexibility to launch services faster to the market, provide new and compelling promotions and pricing models, and combine services in order to drive ...
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Have IBM & Apple Partnered Their Way to Cloud Leadership?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/18/2014
Analytics, Security Key to Apple, IBM Tie-Up
Ray Le Maistre, Editor-in-chief, 7/16/2014
Will Santa Fe Strategy Be a Message to Munis?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/18/2014
Like Us on Facebook
Twitter Feed