Light Reading
At the TM Forum Live! In Nice, cable operators see a real opportunity to generate more revenues from small and midsized business users.

MSOs Pumped About Business Services Growth

Ray Le Maistre
6/2/2014
50%
50%

NICE, France --TM Forum Live! -- Enterprise customers provide the greatest growth opportunity for cable operators in Europe and North America, a panel of service provider executives concluded here this morning during the opening Cable Summit session.

Assessing a number of potential business opportunities for cable operators, including eHealth, home monitoring and security, and smart energy, the panel -- Dean Walters, CIO of Liberty Global Inc. (Nasdaq: LBTY), Cash Hagen, CTO at WideOpenWest Holdings LLC (WOW) , and Carlos Moreno, CIO at Spanish operator ONO -- agreed that building on existing success in the "commercial services" market by offering a broader range of products to a broader corporate demographic offered immediate growth opportunities.

"This is the growth area," said Hagen, adding that cable operators had done a good job already of targeting the lower end of the small and midsized business (SMB) market and could now sign up increasing numbers of midsized business customers. "The incumbent LECs do a good job at the upper end of the market, the MSOs do a good job at the low end and there is a big opportunity in between -- that's where we are focused." Developing data center/cloud services is "where a lot of our capital will be spent in the next few years," he said.

ONO's Moreno said the demand from SMBs has been "happening faster than expected," with infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) the main drivers. The SMB market currently offers "the greatest opportunity for growth for us," he added.

Liberty Global's Walters agreed. "There's a real gap in the market -- it's under-served and the most exciting area of growth for us, with great opportunities in cloud-based services."

What cable operators such as Liberty Global, which has commercial services operations in 12 markets across Europe, must do, added Walters, is ensure that they can compete against the OTT business services players. "We need to make sure we're not just providing connectivity."

Other operators across Europe might also be experiencing the same market conditions, as, according to European Commission statistics, 99% of all businesses in Europe are SMBs, noted the session's host Ed Feingold, director of strategy at NetCracker Technology Corp.

That such opportunities exist has not been lost on the cable fraternity -- it has been a growing presence in the commercial services market for some time, as Heavy Reading research pointed out in late 2013. (See Heavy Reading: Cable Biz Sales to Hit $8.5B.)

The panel was less optimistic about being able to source new revenues from other areas. Growth in the smart energy and eHealth sectors might provide a little wholesale business and some partnership opportunities, while home monitoring and security is challenging from a business model and operations perspective. "We're still figuring out what can be monetized and how we would sell [such services]. Does it include hardware, applications? There are lots of questions to answer," said Hagen from WOW!

Whatever new services might be developed, do the cable operators have the OSS and BSS capabilities to be able to deliver and bill for them, asked Feingold? The "back office" is already challenging and will need to improve, said Hagen, while Walters said new capabilities would be needed. "But as we upgrade [OSS and BSS], we are finding that we are becoming more agile."

ONO's Moreno is a bit happier with what he has in place. "We are a relatively young company, only 15 years old, so we don't have [legacy] problems. We could provide new services with the systems we have. The big challenge is with marketing," said the Spaniard.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, 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
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, 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
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed