Cable Operators May Miss a Golden Chance to Court New Business Customers, New Report Finds

An exclusive survey shows businesses want telecom services from cable companies, but consumers remain cable's top priority, says Heavy Reading

PRNewswire
NEW YORK
Feb 15, 2006

Cable companies have a strong opportunity to sell advanced telecom services to businesses, but the enterprise market is likely to remain largely ignored by cable in the near term, as operators continue to focus on shoring up their residential services in their escalating battles with incumbent telcos, according to a major new report from Heavy Reading (www.heavyreading.com), Light Reading Inc.'s market research division.

Cable vs. Telcos: The Battle for the Enterprise Market provides a comprehensive assessment of efforts by North American cable network operators to tap into the vast revenue reservoir of business-class telecom services. The cornerstone of the 67-page, all-new report is an exclusive survey conducted by Heavy Reading in January 2006 of 112 qualified telecom decision makers and influencers at U.S. businesses of all sizes on their plans for deploying advanced data services and their perceptions and attitudes toward cable companies as providers of them.

"There are many technical challenges facing cable operators as they move to commercial services," notes Sterling Perrin, Senior Analyst at Heavy Reading and author of the report. "But the main inhibitor is the business side of the cable companies, which right now is focused squarely on fighting off the threat posed by telcos that are moving after cable's bread and butter business -- the residential video market."

Cable vs. Telcos: The Battle for the Enterprise Market provides detailed profiles of the leading U.S. cable operators and their commercial services strategies, including Cablevision, Comcast, Cox Communications, and Time Warner Cable. It also provides in-depth analysis of more than a dozen leading equipment suppliers active in commercial services, including Cisco Systems, Motorola, Nortel Networks, and Siemens.

Results from the exclusive, invitation-only survey of enterprise and IT professionals include the following:

- 73% of respondents are already aware that cable companies offer business
    services.

  - 58% of businesses are willing to consider cable operators for future
    business services.

  - 55% rate cable companies as trustworthy for the delivery of business
    telecom services -- even though cable operators have relatively little
    experience in the business market.

  - 80% of businesses that would consider turning to cable operators for
    VOIP services.

Cable operators are not likely to be in a good position to capitalize on these positive perceptions in 2006, Perrin warns. "Although some of the cable companies are talking about going after telco business customers in response to the telcos' invasion of their video turf, the reality is that the cable companies are afraid of losing their stable consumer base and are reverting to a protective mode," he notes. "Despite some tough talk, we believe that the telco video threat will inhibit -- not promote -- cable commercial services expansion plans, at least for this year."

Cable vs. Telcos: The Battle for the Enterprise Market costs $3,795 and is published in PDF format. The price includes an enterprise license covering all of the employees at the purchaser's company.

For more information, or to request a free executive summary, contact:

  Dave Williams
  Sales Director, Heavy Reading
  858-485-8870
  dave.williams@heavyreading.com

  Press/analyst contact:
  Dennis Mendyk
  Managing Director, Heavy Reading
  201-587-2154
  mendyk@heavyreading.com

  About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next- generation hardware and software.

About Light Reading

Light Reading Inc., a wholly owned subsidiary of CMP Media, is a B-to-B network information provider. Light Reading publishes www.lightreading.com, the leading global content site for the telecom industry; www.byteandswitch.com, a storage networking site; and www.unstrung.com, dedicated to wireless networking. Light Reading is also affiliated with www.heavyreading.com, a market research site for quantitative analysis of telecom technology to carriers, service providers, and vendors.

About CMP Media

Through its market-leading portfolio of trusted information brands in the technology, healthcare, and lifestyles industries, CMP Media has earned the confidence of more professionals and enthusiasts in these fields than any other media company. As a result, CMP is the premier provider of access, insight, and actionable programs designed to connect sellers and buyers in each of these industries in ways that yield superior return on investment.

SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, Heavy Reading, +1-858-485-8870,
dave.williams@heavyreading.com; Press/analyst contact - Dennis Mendyk,
Managing Director, Heavy Reading, +1-201-587-2154, mendyk@heavyreading.com

Web site: http://www.heavyreading.com/
http://www.lightreading.com/
http://www.byteandswitch.com/