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Small, Medium-Size Biz Markets Big for MSOs

01 августа 2006
Smaller market areas, including those served by Tier II telecom operators, represent a $6.7 billion share of the overall $14.7 billion enterprise services opportunity for cable operators that are part of the National Cable Television Cooperative (NCTC).

That's according to data released Monday by Vyyo, a supplier of broadband access equipment for cable and private wireless broadband network solutions. The numbers come from GeoResults, a telecommunications marketing and database firm, and aim to demonstrate how NCTC members can leverage business services opportunities in the areas they serve.

GeoResults said there are more than 857,000 businesses considered prospects for T1 services in markets consisting of fewer than 1 million people. Those businesses require more than a million T1 links to meet telecom needs. And that could mean an estimated monthly ARPU of $400 per T1 and more than $6.8 billion in total annual opportunity, the firm said.

"There is absolutely nothing 'small' about the business services market opportunity for our members," said Alan Tschirner, vice president, hardware for NCTC. "NCTC operators increasingly are recognizing that the ability to deploy T1 services over existing hybrid fiber-coax networks can collectively generate billions of dollars in stable, predictable new revenue at the expense of competitors."

Vyyo also used numbers from Kagan Research to highlight the enterprise potential, saying that in 2005 cable operators produced more than $1.9 billion in commercial telecom revenue - or less than 2 percent of the total market - up from just under $1.2 billion in 2004.

This week, Vyyo is showing both its spectrum overlay and T1 over coax solutions at the Independent Show, hosted by NCTC and the American Cable Association. Both organizations represent small cable interests.

01.08.2006

Source: The BRIDGE

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