Michael Cooney
Senior Editor

Here comes cable

Opinion
Nov 1, 20042 mins

* A look at cable multiple system operators

Our Special Focus this week takes a look at cable multiple system operators – including Cox, Charter and others – who are building a presence as providers of business telecom services, particularly to small and midsize businesses.

Our author (jduffy@nww.com) says that in the U.S. there are approximately 5.4 million SMBs, about 98% of which are passed by upgraded cable facilities, according to Current Analysis. U.S. businesses will spend roughly $3.2 billion on cable modem services this year, as compared with an estimated $3.3 billion for DSL services, according to In-Stat/MDR.

In fact, SMBs spent about $2.15 billion on “value-added” data services – broadband services, voice-over-X (VoIP, VoDSL and others) services, VPN services, managed services, and other telco-delivered services provided over the wide area data network – in 2003. They spent the largest portion – 36% – of their wireline data service budgets on such services, the firm found.

At-home workers and telecommuters also continue to drive broadband adoption. Nearly one-third of the U.S. workforce, or 44 million individuals, is expected to work at home on at least a part-time basis in 2004, according to In-Stat/MDR. The firm expects that number to grow to 51 million telecommuters by 2008, nearly 14 million of who are expected to work from home full-time. Also cable outpaces DSL in terms of number of subscribers in the U.S. business at-home workforce, In-Stat finds.

For our story see: https://www.nwfusion.com/news/2004/110104specialfocus.html