In today’s electronic communications environment, traditional telecommunications companies are providing MVPD service, and traditional MVPDs such as the cable industry are providing telecommunications. To date, CATV companies primarily serve consumers, and a new study suggests growth opportunities in the business sector.
According to The Insight Research Corporation, the cable industry is expected to add $700M in revenue by providing telco services to various sized enterprises.
However, that represents a very small slice of a business pie that brings in a total of $130B in revenue.
The residential market where cable gets most of its telecommunications income is half the size of the business market, worth about $65B.
“While their legacy has been in providing services to residential markets, the greatest opportunity ahead for the cable TV industry lies in grabbing share in the enterprise segment and providing telecom services to over 7 million potential business locations throughout the US,” says Robert Rosenberg of Insight Research. “Our study suggests that continued cable industry consolidation will actually strengthen their ability to compete as larger systems with broader footprints, uniform services, and improved performance match the capabilities the telco have long provided.”