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Cable TV Operators, Telecom Services, and the Push into the Enterprise, 2010-2015

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This report will be essential reading for a wide range of providers offering telecom services to the enterprise and small business. Commercial telecom services have traditionally been the exclusive province of telcos, but that is changing. While the large cable MSOs HFC networks pass over 80 percent of businesses in the US, the CableCos’ share of the commercial services market is less than two percent. The opportunity appears obvious and, indeed, every major cable operator is targeting commercial services as their top growth priority over the next five years.

This report examines how MSOs are leveraging their existing networks—built primarily to transport broadcast video services—to support commercial telecommunications services for the enterprise and small business. We survey a representative number of MSOs, telcos, and enterprise customers, and tell how the various carriers are addressing the needs of the enterprise and small business customer. We provide forecasts of spending for hardware and network services to provide various types commercial services, and on the enterprise side we forecast how fiber optics, wireless access, and digital transmission is augmenting demand for such services.

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    Report Excerpt

    1.1 Cable Operators, Telecom, and Business Services

    US cable television multiple system operators (MSO) have a 60 year history providing services to residential customers, but their experience providing services to commercial enterprises dates back only about 15 years—and in the $340 billion per year US telecommunications industry, the MSO’s thus far have missed out on the biggest slice of the telecom pie.

    The cable TV industry now appears poised to address the telecommunications needs of businesses of all sizes, and is read to jump with both feet into providing new services to businesses regardless of their size. The benefits for MSOs shifting to commercial services include:

    · Offsetting low growth in residential market
    · Business segment growing 10-20 percent annually
    · Higher-margin services
    · Opportunity to compete with traditional carriers
    · New services (mobile backhaul, WiFi (wireless fidelity), Ethernet) fit well within existing HFC (hybrid fiber coax) network architecture

    To understand the role MSO's play in the US telecommunications industry......

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    Market Segmentation


    By Country
    Commerical Services Revenue By Enterprise Size
    Commerical Services Revenue By Service Provider
    MSO Commerical Service Revenue by Service Type
                  Private Line
                  Web Hosting
                  Optical Transport
    Ethernet Commerical Service Revenue
                  Total Telco
                  Total MSO
                               MSO by Speed
                                         >1 Gbit/s
                                         >100 Mbit/s - 1 Gbit/s
                                         >10 Mbit/s - 100 Mbit/s
                                         <=10 Mbit/s

                  Total Revenue by Type of Service

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    Table of Contents


    Chapter I
    1.1        Cable Operators, Telecom, and Business Services
    1.2        CableCos Appear Well Positioned to Compete in Enterprise Markets
    1.3        Deploying Commercial Services
    1.4        Market Forecast

    Chapter II
    2.1        Definitions
    2.2        US Cable Industry
    2.3        Cable Industry Capital Expenditures
    2.4        History of Cable TV Business
    2.5        MSO Commercial Services Progress
    2.6        Telco Commercial Services Monopoly
                 2.6.1   AT&T
                 2.6.2   Verizon
                 2.6.3   Sprint
                 2.6.4   Other
    2.7        MSO Challenges from Telcos
    2.8        MSO Opportunities
    2.9        Industry Structure

    Chapter III
    3.1       Market Overview
    3.2        Market Segments and Characteristics
    3.3        Small Businesses and Home Offices
    3.4        Medium Sized Businesses
    3.5        Enterprises
    3.6        Wholesale

    Chapter IV
    4.1        HFC Networks
    4.2        DOCSIS
    4.3        CMTS
    4.4        Forward and Return Bandwidth
    4.5        HFC Fiber Deep
    4.6        Fiber to Businesses
    4.7        RF over Glass
    4.8        Passive Optical Networks
    4.9        Ethernet Services
    4.10      Point-to-Point Services
    4.11      Switched Digital Video
    4.12      Wireless Backhaul
    4.13      Wireless Mobility
    4.14      Management Platforms

    Chapter V
    5.1       Commercial Services by Business Size
    5.2        Cable Operators
                 5.2.1   Comcast
                 5.2.2   Time Warner Cable
                 5.2.3   Cox Communications
                 5.2.4   Charter
                 5.2.5   Cablevision

    Chapter VI
    6.1        Forecast Summary
    6.2         Methodology
    6.3        Commercial Services Addressable Market
    6.4        Telco and MSO Commercial Services Revenues
    6.5        Small Businesses Commercial Services
    6.6       Medium Businesses Commercial Services
    6.7       Enterprise Businesses Commercial Services
    6.8       MSO Services
    6.9       Ethernet Services
    6.10     Conclusion

    Table of Figures
    Chapter I
    I-1     US Telecommunications Revenue by Market, 2009
    I-2     US MSO Commercial Service Revenues, 2010-2014

    Chapter II
    II-1    Number of US Cable Systems
    II-2    US Residential Revenue, 1996-2008
    II-3    US Advertising Revenue, 1999-2008
    II-4    US MSO CAPEX, 1996-2009
    II-5    Split by Provider Type of Commercial Services Revenue, 2009
    II-6    MSO Commercial Services Revenue, 2009
    II-7    Technology Transformation, 1990-2020
    II-8    Technology Transformation, 1990-2020
    II-9    Porter's Five Forces

    Chapter III
    III-1   US Telecommunications Revenue by Market, 2009
    III-2   US Commercial Revenue by Segment, 2010
    III-3   US Firms by Number of Employees

    Chapter IV
    IV-1    HFC Architecture
    IV-2    CableCo Managed IP Network Architecture
    IV-3    CMTS Next Generation
    IV-4    Current HFC System Bandwidth Allocation
    IV-5    Current HFC Bandwidth Available for Data
    IV-6    Next Stage HFC Bandwidth
    IV-7    Next Stage HFC Bandwidth Available for Data
    IV-8    Future HFC Network Bandwidth
    IV-9    Future HFC Network Bandwidth for Data
    IV-10  Data Bandwidth History & Forecast
    IV-11  RFoG Network
    IV-12  PON in HFC Architecture
    IV-13  Carrier Ethernet Network
    IV-14  MEF Standards
    IV-15  EPL Network
    IV-16  E-LAN Network
    IV-17  Carrier Ethernet Architecture for Cable Operators
    IV-18  Point-to-Point Architecture
    IV-19  Switched Digital Video Tradeoffs
    IV-20  Revenue for Local Private Line by Wholesale/Retail Segments, 2009-2014
    IV-21  Wireless Backhaul Business District
    IV-22  Carrier Ethernet for Mobile Backhaul
    IV-23  Cable WiFi Roaming
    IV-24  HFC WiFi Access Points
    IV-25  OSS/BSS Target Architecture

    Table of Tables
    Chapter I
    I-1      US Companies Ranked by Video Subscribers, 2009
    I-2      US MSO Commercial Service Revenues, 2010-2014

    Chapter II
    II-1     US MSOs Ranked by Video Subscribers, 2009

    Chapter III
    III-1    MSO Share of Revenue, 2009
    III-2    Business Segment Characteristics
    III-3    US Establishments and Firms by Employee Size, 2006
    III-4    Business Segment Functional Requirements
    III-5    MSO’s Small Business Addressable Market
    III-6    MSO’s Medium Sized Addressable Market
    III-7    MSO’s Enterprise Businesses Addressable Market

    Chapter IV
    IV-1   Ethernet Services Characteristics
    IV-2   US Wireless Statistics, 1995-2010

    Chapter V
    V-1    Commercial Services by Business Size
    V-2    MSO Commercial Services

    Chapter VI
    VI-1    US MSO Commercial Service Revenues, 2010-2014
    VI-2    US Commercial Services Addressable Market, 2010-2014
    VI-3    Telco vs. MSO Total Commercial Services Revenue, 2010-2014
    VI-4    Telco Commercial Services Revenue by Business Size, 2010-2014
    VI-5    Small Businesses Revenue Telco vs. MSO, 2010-2014
    VI-6    US Medium Businesses Revenue Telco vs. MSO, 2010-2014
    VI-7    Enterprise Businesses Revenue Telco vs. MSO, 2010-2014
    VI-8    US MSO Service Revenue by Service Type, 2010-2014
    VI-9    Telco vs. MSO Ethernet Service Revenue, 2010-2014
    VI-10  US MSO Ethernet Service Revenue by Speed, 2010-2014
    VI-11  US Ethernet Service Revenue by Service Type, 2010-2014

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