The nation's top cable operators are launching a long-anticipated push to develop and deploy a commercial services portfolio focused on the small and mid-sized business (SMB) segment. In attacking this multibillion dollar opportunity, cable companies have fundamental decisions to make regarding technology solutions, the types of customers to target, the channel partners they will leverage in reaching those customers, and service portfolios to market through those channels. This 30+ page report provides an overview of the commercial services strategies of the leading operators, analyzes their existing and emerging capabilities, and details the critical success factors for the cable industry in targeting the SMB opportunity.
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About the recording
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Introduction
The Opportunity
Cable MSO's Current Position in the Market
Critical Success Factors
- Ability to Reach Target Customers Cost Effectively
- Establish a Reputation for Excellent Customer Service Quality
- Continually Develop New Service Capabilities And Think Creatively About How Those Capabilities Can Be Combined
- Establish Strong Strategic Alliances with Providers that Can Accelerate Market Entry and Expand Available Offerings
- Leverage Channels as Appropriate to Attack SMBs
- Maintain Control of Labor Costs
- Leverage Technology Suppliers Vested Interest in MSO Success
- Vastly Enhance OSS Capabilities
- Make Realistic Plans Based on Observed Market Dynamics
U.S. MSO Commercial Services Capabilities - Spring 2007
- Cablevision Optimum Lightpath
- Comcast Commercial Services
- Cox Business Services
- Charter Business Services
- Time Warner Cable Business Class
So, Can the MSOs Compete For Commercial Services Revenue?
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Cable Companies Could Make Up $11 Billion per Year in Business Market By 2012, But Will Face Soaring Labor Costs, Pike & Fischer Predicts
SILVER SPRING, MD, April 30, 2007 - Cable companies are well-positioned to draw new business from small and medium-sized businesses, but will likely see their labor costs rise dramatically as a result, market research firm Pike & Fischer concludes.
In a new report on the U.S. cable industry's growing pursuit of business customers, P&F forecasts that cable operators can achieve commercial revenues of $10 billion-$11 billion per year by 2012. But the cable companies will face escalating salary costs as they invest heavily in the "human infrastructure" required to penetrate the business market, the report says. In addition, P&F predicts that labor unions will increase efforts to gain a foothold in cable company workforces.
Cable companies will also be devoting increased capital spending on physical facilities, as well as on operations and business support systems, says Tim McElgunn, Chief Analyst at Pike & Fischer's Broadband Advisory Services and author of the report. Going forward, MSOs absolutely must approach OSS strategically and ensure that they are buying and applying the right tools to the right job.
"Ongoing improvements in terms of ordering, billing and service-provider interactions are absolutely critical to continued success in the SMB market. Those improvements will not be economically achievable unless and until highly capable and scalable OSS and BSS systems are specified, installed, integrated, tested and optimized," adds McElgunn.
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Tim McElgunn
Tim McElgunn, our Chief Analyst, has more than 20 years of experience and expertise in market sizing, forecasting, segmentation and share analysis in emerging and legacy segments of the telecommunications industry. He focuses on the business strategies and competitive status of U.S. cable companies, telephone companies, satellite TV providers and broadband-enabled application providers such as Google, Yahoo and Microsoft. Before joining BAS in November 2006, Tim headed up U.S. consumer broadband analysis for eight years at Stratecast, a division of Frost & Sullivan. He also held senior analyst positions at both Datapro/NBI and Gartner Dataquest. Contact Tim at 856-751-6723 / tmcelgunn@pf.com.
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