US cable operators could generate $20 billion in business services revenue by year-end 2020, up about 11% from $18 billion in sales of similar offerings this year, Light Reading's Alan Breznick told attendees at The Future of Cable Business Services today.
In 2007, back when the Cable Business Services event debuted, cable operators generated between $2 billion and $3 billion from these services, said Breznick, Light Reading's Cable/Video Practice Leader.
The big win for cable was in chasing small and midsized businesses, but there are already some signs that market may be topping out, wrote Light Reading Senior Editor Jeff Baumgartner in an article today.
Let's look at how cable is winning new enterprise deals and how they can keep growing.
Comcast Business has a unit solely focused on the Fortune 1000, supported by network access deals its inked with other MSOs, according to the Light Reading article. These have long sales cycles, however, and often complex processes, so are not for the weak of heart, but Comcast has the size and scale to pull it off.
Cox Business is focusing on healthcare, as are some other cable providers. In April, the provider had "more than 40,000 facilities connected to a host of different healthcare providers across the Cox franchise," said Mike Braham, vice president and general manager of Trapollo, a national provider of remote patient monitoring and telehealth services that Cox acquired in 2015 as part of its large healthcare expansion. (See Cox Business Health GM: No More Evangelist.)
Mediacom is testing out solutions for "big agra," or the large conglomerates involved in much of today's farming. Others MSOs use their infrastructure, technology expertise and services in education, hospitality, financial services and more, Light Reading reported.
Verticals are always attractive and MSOs have been expanding their reach, Breznick said today. As new connectivity-dependent businesses that require pre-packaged solutions present themselves, cablecos can pounce and use their core skillset to keep growing in the business services market.
The lack of an accurate broadband map means states and counties are tackling this issue themselves – and sometimes finding big disparities in the data – before spending their residents' money on deploying infrastructure.
Years of investment in infrastructure and user-friendly tools make the difference in how operators act before and after natural disasters, even though Hurricane Dorian's impact on Florida was far less than originally forecast (thankfully).
The number and power of Britain's so-called altnets is growing, increasing access to fiber-based gigabit broadband for residents and businesses where incumbents such as BT, Virgin and Openreach did not deliver.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.