It's probably preaching to the choir, but a study by Insight Research suggests that cable operators would do well--at the very least financially--to aggressively attack the small, medium and large commercial services business.
The study says that the residential market--cable's traditional target--is the "smallest segment of the U.S. telecommunications market" and that commercial services, with a value of about $130 billion, are the place to be. Insight put cable's share of new revenue at $700 million over the next five years.
It's preaching to the choir because, almost in unison, the industry's leaders have turned their attention to the commercial market and how they can compete with incumbent phone companies.
Commercial "represents a significant growth opportunity ... to create an incremental revenue stream to our existing assets; one that requires a focused approach," said Charter Communications (Nasdaq: CHTR) President-CEO Mike Lovett during a third quarter earnings conference call.
- see this news release
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