MSOs Set to Steal SP Market Share

SAN FRANCISCO -- Cable multiservice operators (MSOs) such as AT&T Broadband and Comcast are well positioned to take market share away from ILECs in North America, says RHK in a report issued this week by the Telecom Economics Program. MSOs' dominance in the broadband access market is likely to continue for the next five years, analysts say. In addition, many operators could succeed in the voice market in the longer term as Voice over IP technology is introduced to cable networks. MSOs have several advantages over their ILEC rivals, including:

MSOs have three main business segments: cable television, high-speed Internet service, and voice service. Although cable TV still accounts for the majority of revenues, broadband Internet access will be a primary source of future growth for MSOs. RHK Inc.