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While the
US Cable TV Multiple System Operators (MSOs) in 2012 may generate over $7
billion in annual revenues providing telecommunications services to businesses,
they will be chasing a declining business telecom services segment and face
fierce competition from entrenched telco providers with very deep pockets ready
to staunchly defend their existing base, according to a new market research
study from The Insight Research Corporation. Cable Operators will gain some
market share, but they will remain small players in a big industry with low
margins and little cash flow.
Insight
Research’s market analysis study, “Cable
TV Enterprise Services, 2012-2017” provides a sobering view for Cable
Providers, who have been touting the Business Services market as a profitable
respite from their mature residential video business. Next to Wireless
Services, Business Services is the second largest segment in the US
telecommunications landscape. While Cable Operators have had some recent
success in growing their single-digit share of this market, they will face major
obstacles trying to take significant share in this modest growth segment.
“While
their legacy in providing services to residential segments may give them
confidence they can grow profitably in this adjacent segment, the Cable
Operator’s challenges will be steep and growth is dependent upon taking market
share from entrenched players” says Fran Caulfield, Research Director at Insight
Research. “Our study concludes that despite these obstacles, Cable Operators
will forge ahead and the entrenched Telco Providers will likely respond with
investments, price, and improved performance to combat this threat. It should
be an interesting few years,” Caulfield concluded.
“Cable
TV Enterprise Services, 2012-2017” segments revenue estimates for telco and
cable operators providing basic voice, data, and video services offered to the
small, medium and large enterprise business segments. Detailed revenue estimates
are provided for a range of business services, including Ethernet, private
lines, voice services, web hosting, optical transport, and video.
An excerpt
of this enterprise telecommunications services market research report, table of
contents, and ordering information are online
http://www.insight-corp.com/reports/cabletv12.asp. This 137-page report is
available immediately in Electronic (PDF) format and can be ordered online for
$4,695.00. Visit our website, or call 973-541-9600 for details.
For more information please
contact:
Ms. Kim Novak, Marketing Director
973-541-9600
kim@insight-corp.com
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Carriers
and Ethernet Services |