& cplSiteName &

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        ADD A COMMENT
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
BBC Head: We Must Reinvent Broadcasting for a New Generation
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/21/2017
Qualcomm Takes Q3 Pummeling From Apple
Iain Morris, News Editor, 7/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Latest Comment
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.