The small and mid-sized business (SMB) segment has become a huge growth opportunity for the cable TV industry. Significant improvement in business data and video traffic is expected to act as a future growth catalyst for the industry. Furthermore, managing wireless backhaul traffic for mobile towers has also opened up a multi-billion dollar market.
Cable MSOs (multi service operators) are now gradually coming up with innovative wireless broadband services to their business customers in order to maintain this momentum.
According to a recent report by LightReading, the SMB market opportunity is likely to cross $10 billion mark in 2014. Many industry researchers predict that the SMB segment will become a market opportunity worth $20 billion – $30 billion in the long-term.
Meanwhile, Comcast Corp. (CMCSA) is expected to garner around $4 billion in revenues, whereas Time Warner Cable Inc. (TWC), Cox Communications Inc. and Charter Communications Inc. (CHTR) are expected to generate approximately $3 billion, $2 billion and $1 billion of revenues, respectively, in 2014.
This massive market opportunity has also encouraged telecom giants to restructure their SMB market strategy. AT&T Inc. (T) is rapidly expanding its fiber-based U-verse network and has announced a new high-speed asymmetric 25 Mbps service for $50 per month to all SMBs located within its U-Verse footprint.
Similarly, Verizon Communications Inc. (VZ), which is rolling out its fiber-based FiOS Internet service, has decided to offer a free SpeedMatch for SMBs who opt for the FiOS service.
Cable MSOs are gradually shifting focus from the small-sized business segment to the mid-sized business segment. In sync with the latest trend, Comcast has decided to deploy SIP trunking to offer VoIP (voice-over IP) based services nationwide by the end of 2014. VoIP service will help the company target mid-sized business establishments.
Notably, Comcast and Time Warner Cable are currently awaiting regulatory approval for their proposed $45.2 billion merger deal. The combined entity is likely to achieve the necessary economies of scale to serve large business enterprises.
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