Cablecos Set Sights on SMBs

Boonton, NJ-based Insight Research Corp has just released a new market analysis report titled: Cable Telephony: The Threat to Small Enterprise ILEC Markets 2007-2012.

 

The gist of the report, according to Insight, is that, “…fierce competition — long a hallmark of MSOs and phone companies that provide residential telephone and broadband data services — is now spilling over in the small business market.”

 

The fact is service providers can generate a 300–400% increase in revenue from a small business as compared to a residential customer.

 

As a result of cable companies turning their focus on SMBs, Insight believes the big losers are likely to be the phone companies.

 

“Recent announcements by Comcast and Time Warner Cable make it plain that the small enterprise is the next battleground in the cable versus phone company fight,” says Robert Rosenberg, President of Insight. “MSOs such as Comcast, Cox, and CableVision have the offers and the reach, and they are going to have a definitive impact on phone companies’ bottom line over the next few years,” Rosenberg concludes.

 

According to the report, the top 20 cable operators are setting their sights on the SMB market, and that could negatively impact incumbent phone companies to the tune of more than four billion dollars over the next five years.

 

For more information, Insight is offering a free report excerpt.