U.S. cable MSOs are gaining more in the way of revenue from broadband and business services than they’re losing in video subscribers to their telco and OTT (over-the-top) competitors, according to a report from Insight Research.
U.S. cable MSOs’ revenue from business services has been growing at double-digit rates for the past few years and their market share is nearing 10%, Insight market researchers highlight in “Cable TV Operators, Telecom Services, and the Push into the Enterprise, 2013-2018.”
Cable MSOs are on pace to generate $8.8 billion in revenue this year by providing telecom services to small and medium-size businesses (SMBs), a market segment that telcos “have owned…for the past thirty years,” they continue.
“Cable companies continue to demonstrate strength in leveraging their existing HFC (hybrid fiber-coaxial) networks and in providing new business services, such as mobile backhaul, WiFi access, and Ethernet services,” elaborated Insight research director Fran Caulfield.
“Our research also shows that they continue to take market share from the entrenched telco providers, who have yet to become aggressive with pricing, investment, and quality in defending their market position,” Caulfield concluded.