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Cable Companies Begin Selling
Small Business Phone Service
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BOONTON, NJ.
May 21, 2004:
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Although the telecommunications industry is focused on the
market share battle between local telephone companies and cable television
companies for the residential telephone service, IP telephony services
represent a more lucrative per-customer opportunity for cable MSOs, which
pass by more than 3 million small businesses with their hybrid fiber-coax
networks, says a new research study released by The Insight Research
Corporation.
According to the report “Cable Telephony in Small
Businesses: The Competitive Threat to ILECs 2004-2009”, small businesses
will purchase bundled voice and high-speed data services at three to four
times the price of residential bundles of voice, data, and basic TV
services. Phone services including IP telephony for small businesses will
generate $342 million for cable companies this year, the study predicts,
but when voice is combined with cable modem services, cable operators
could rake in almost $2.5 billion by the end of 2004. Based on an
examination of the cable operators’ networks, Insight quantified the
numbers of business telephone lines accessible to IP telephony and other
cable telephony solutions, assessed the line loss risk to the local
telephone companies, and forecasted cable company revenue potentials.
“Cox and CableVision have already started selling to
small businesses, and the other cable operators undoubtedly have their
cross hairs set on the local phone company’s business customers. For
example, cable operators are within reach of more than 8.8 million small
business phone lines in the SBC territories and more than 3.2 million
small business lines in the BellSouth operating area,” says Insight
Research president Robert Rosenberg. “These cable operators have the
economic incentive to grab those small business customers since a business
will generate several hundred dollars more per month than a residential
subscriber,” Rosenberg concluded.
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Broadband Network Management 2004-2009 |
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Operations Support Systems (OSS)
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