Cable Telephony: The Threat to Small Enterprise ILEC Markets 2007-2012

Table of Contents

Chapter I

EXECUTIVE SUMMARY

• 1.1 Cable Telephony and Broadband Services for the Small Enterprise
• 1.2 The Small Enterprise Market for High-Speed Data and Voice

Chapter II

CABLE NETWORK TECHNOLOGY

• 2.1 Development of the CATV Network
  • 2.1.1 Traditional Coax Network
  • 2.1.2 HFC
    • 2.1.2.1 HFC Components
    • 2.1.2.2 HFC Topology
• 2.2 Circuit Switched Cable Telephony
• 2.3 Circuit Switched With Hybrid IP Networks
• 2.4 IP Cable Telephony
  • 2.4.1 Data over Cable Service Interface Specification (DOCSIS)
    • 2.4.1.1 DOCSIS 1.1 & 2.0
    • 2.4.1.2 DOCSIS 3.0
  • 2.4.2 PacketCable
    • 2.4.2.1 PacketCable 1.1 & 1.2
• 2.5 Cable IP Telephony Implementation Issues
  • 2.5.1 Primary Line Service/E911
  • 2.5.2 Communications Assistance for Law Enforcement Act (CALEA)

Chapter III

TELCO BROADBAND TECHNOLOGY IMPLEMENTATION

• 3.1 Digital Subscriber Line (DSL)
• 3.2 Fiber to the Premise (FTTP) Architecture

Chapter IV

THE SMALL ENTERPRISE MARKET DEMOGRAPHICS

• 4.1 Classification of Businesses
  • 4.1.1 Agriculture, Forestry, Fishing and Hunting
  • 4.1.2 Mining
  • 4.1.3 Utilities
  • 4.1.4 Construction
  • 4.1.5 Manufacturing
  • 4.1.6 Wholesale Trade
  • 4.1.7 Retail Trade
  • 4.1.8 Transportation and Warehousing
  • 4.1.9 Information
  • 4.1.10 Finance and Insurance
  • 4.1.11 Real Estate, Rental and Leasing
  • 4.1.12 Professional, Scientific, and Technical Services
  • 4.1.13 Management of Companies and Enterprises
  • 4.1.14 Administrative, Support, Waste Management and Remediation Services
  • 4.1.15 Educational Services
  • 4.1.16 Health Care and Social Assistance
  • 4.1.17 Arts, Entertainment, and Recreation
  • 4.1.18 Accommodation and Food Services
  • 4.1.19 Other Services (except Public Administration)
  • 4.1.20 Public Administration
  • 4.1.21 Undefined
• 4.2 The Classification of Businesses by Size
• 4.3 Distribution of Business by Size
• 4.4 The Business Line Market Methodology and Analysis
• 4.5 The Business Line Market in Small Enterprises
• 4.6 Small Enterprises as an Opportunity Space

Chapter V

LEC AND MSO COMPETITIVE SMALL ENTERPRISE BUSINESS LINE MARKETS

• 5.1 The LEC Business Line Market
• 5.2 The LEC Small Enterprise Business Line Market
• 5.3 The MSO Small Enterprise Business Line Market

Chapter VI

THE MSOs SMALL ENTERPRISE MARKET POTENTIAL AND BUSINESS SERVICES OFFERS

• 6.1 MSOs
  • 6.1.1 Adelphia
  • 6.1.2 Armstrong Cable
  • 6.1.3 Atlantic Broadband
  • 6.1.4 Blue Ridge
  • 6.1.5 Bright House
  • 6.1.6 Buckeye
  • 6.1.7 CableOne
  • 6.1.8 Cablevision
  • 6.1.9 Charter
  • 6.1.10 Comcast
  • 6.1.11 Cox
  • 6.1.12 GCI
  • 6.1.13 Insight
  • 6.1.14 Knology
  • 6.1.15 Mediacom
  • 6.1.16 MidContinent
  • 6.1.17 Millenium
  • 6.1.18 Northland
  • 6.1.19 Suddenlink (Cebridge)
  • 6.1.20 Time Warner
  • 6.1.21 WOW!

Chapter VII

THE LECs SMALL ENTERPRISE MARKET POTENTIAL AND BUSINESS SERVICE OFFERS

• 7.1 LECs
  • 7.1.1 Alaska Communications Systems (ACS)
  • 7.1.2 AT&T
  • 7.1.3 BellSouth
  • 7.1.4 CenturyTel
  • 7.1.5 Cincinnati Bell
  • 7.1.6 Citizens Communications
  • 7.1.7 Embarq
  • 7.1.8 Hawaiian Telecom
  • 7.1.9 Iowa Telecomm Services
  • 7.1.10 Qwest
  • 7.1.11 Telephone and Data Systems (TDS)
  • 7.1.12 Verizon
  • 7.1.13 Windstream

Chapter VIII

MSO VERSUS ILEC MARKET OVERLAYS

• 8.1 MSO Market Overlays of ILECs
  • 8.1.1 Alaska Communications Systems (ACS)
  • 8.1.2 AT&T
  • 8.1.3 Bellsouth
  • 8.1.4 CenturyTel
  • 8.1.5 Cincinnati Bell
  • 8.1.6 Citizens Communications
  • 8.1.7 Embarq
  • 8.1.8 Hawaiian Telecom
  • 8.1.9 Iowa Telecomm Services
  • 8.1.10 Qwest
  • 8.1.11 Telephone and Data Systems (TDS)
  • 8.1.12 Verizon
  • 8.1.13 Windstream

Appendix

GLOSSARY

Table of Figures

Chapter II

• II-1 Traditional Tree-and-Branch Coax Architecture
• II-2 Coax Distribution to Customer Premises
• II-3 HFC Architecture Providing Voice and Video Services
• II-4 Circuit Switched Cable Telephony
• II-5 Typical Cable Frequency Spectrum Allocation
• II-6 Circuit Switched with Hybrid IP Network Architecture
• II-7 Cable IP Telephony
• II-8 Basic DOCSIS
• II-9 Basic PacketCable Architecture

Chapter III

• III-1 Voice over DSL Generic Architecture
• III-2 Telco Fiber to the Premise Architecture

Chapter V

• V-1 Distribution of Small Enterprises by Business Employee Size in the ILEC Markets

Table of Tables

Chapter I

• I-1 Business Lines by Industry Sector : Small Enter vs. Large and Medium Enter
• I-2 List of Major ILECs & MSOs Analyzed
• I-3 Small Enterprise Business Line Loss Estimates for the ILECs, 2007-2012
• I-4 Small Enterprise Business Line Revenue Loss Estimates for ILECs ($39⁄line)

Chapter II

• II-1 DOCSIS Evolution: Service Comparison
• II-2 DOCSIS Evolution: Customer Equipment Supported
• II-3 DOCSIS Evolution: Upload/Download Speeds Supported

Chapter III

• III-1 The Versions and Features of xDSL
• III-2 Fiber Installation Cost Estimates
• III-3 FTTP Cost Analysis: Earnings per Share Impacts

Chapter IV

• IV-1 US Business Distribution: All Business Sizes
• IV-2 Business Establishments by Industry Sector and Business Size:
• IV-3 Business Lines: Distribution by Industry Sector 53
• IV-4 Business Lines by Industry Sector and Business Size:
• IV-5 Business Lines by Industry Sector and Business Size - Small Enterprises

Chapter V

• V-1 US Total Access Line Trends: Residential and Business, 2001-2004
• V-2 US ILEC Access Line Trends: Residential and Business, 2001-2004
• V-3 US CLEC Access Line Trends: Residential and Business, 2001-2004
• V-4 US Total Access Line Trends: Residential and Business, 2005-2006
• V-5 US ILEC Access Line Trends: Residential and Business, 2005-2006
• V-6 US CLEC Access Line Trends: Residential and Business, 2005-2006
• V-7 Traditional US Business Line Estimates, 2006-2012
• V-8 ILEC Annual Business Line Losses: All Business Sizes, 2007-2012
• V-9 Annual ILEC Business Line Revenue Losses ($39⁄line), 2007-2012 ($Millions)
• V-10 Enterprises Lost by the ILECs to Competitors in All Business Sizes, 2007-2012
• V-11 Enterprise Level Revenue in All Sizes Lost by the LECs to Competitors, 2007-2012
• V-12 Distribution of Small Enterprises among the Top LECs 65
• V-13 Distribution of the Small Enterprise Business Lines among Top ILEC Markets
• V-14 Small Enterprise Business Line Loss Estimates for the ILECs, 2007-2012
• V-15 Small Enterprise Business Line Revenue Loss Estimates for ILECs ($39⁄line),
• V-16 Five-Year Small Enterprise Business Line Losses by ILEC
• V-17 Five-Year Total Small Enterprise Business Lines Revenue Loss ($39⁄line) by ILECs
• V-18 Distribution of Small Enterprises Lost by ILEC over Five-Year Forecast
• V-19 Distribution of Cumulative Small Enterprise Revenue Losses by ILEC
• V-20 Small Enterprises and Business Lines Distribution by Industry Sectors
• V-21 Distribution of Small Enterprise Establishments and Small Enterprise Business Lines

Chapter VI

• VI-1 Adelphia Holding Company: Small Enterprise Industry Line Potential by Emp Size
• VI-2 Armstrong Cable: Small Enterprise Industry Line Potential by Employee Size
• VI-3 Armstrong Cable: High-Speed Cable Offerings
• VI-4 Atlantic Broadband: Small Enterprise Industry Line Potential by Employee Size
• VI-5 Atlantic Broadband: High-Speed Cable Offerings
• VI-6 Blue Ridge: Small Enterprise Line Potential by Industry by Employee Size
• VI-7 Blue Ridge: Cable and Telephony Offering
• VI-8 Blue Ridge: High Speed Internet Offering
• VI-9 Bright House: Small Enterprise Line Potential by Industry by Employee Size
• VI-10 Bright House: High-Speed Internet Offering
• VI-11 Buckeye: Small Enterprise Line Potential by Industry by Employee Size
• VI-12 Buckeye: High-Speed Internet Offering
• VI-13 CableOne: Small Enterprise Line Potential by Industry by Employee Size
• VI-14 CableOne SOHO Internet Offers
• VI-15 Cablevision: Small Enterprise Line Potential by Industry by Employee Size
• VI-16 Cablevision: Business High-Speed Internet Packages
• VI-17 Cablevision: Business Telephony Offering
• VI-18 Cablevision: Business Bundle of High Speed Internet and Telephony
• VI-19 Charter: Small Enterprise Line Potential by Industry by Employee Size
• VI-20 Charter: High-Speed Internet Service Offerings
• VI-21 Comcast: Small Enterprise Line Potential by Industry by Employee Size
• VI-22 Comcast: Business High-Speed Internet Service Offerings
• VI-23 Comcast: Residential Digital Telephone Offerings
• VI-24 Cox: Small Enterprise Line Potential by Industry by Employee Size
• VI-25 Cox: Business Internet Service Offerings
• VI-26 GCI: Small Enterprise Line Potential by Industry by Employee Size
• VI-27 GCI: Business Internet Service Offerings
• VI-28 Insight: Small Enterprise Line Potential by Industry by Employee Size
• VI-29 Insight: Business Internet Service Offerings
• VI-30 Knology: Small Enterprise Line Potential by Industry by Employee Size
• VI-31 Knology: Business Internet Service Offering
• VI-32 MediaCom: Small Enterprise Line Potential by Industry by Employee Size
• VI-33 Mediacom: Business Internet Service Offerings
• VI-34 MidContinent: Small Enterprise Line Potential by Industry by Employee Size
• VI-35 Midcontinent Business Internet Service Offerings
• VI-36 Mellenium: Small Enterprise Line Potential by Industry by Employee Size
• VI-37 Millenium: High-Speed Internet and Telephone Pricing
• VI-38 Northland: Small Enterprise Line Potential by Industry by Employee Size
• VI-39 Northland: Internet Service Offerings
• VI-40 Suddenlink: Small Enterprise Line Potential by Industry by Employee Size
• VI-41 Suddenlink: High-Speed Internet Offerings
• VI-42 Time Warner: Small Enterprise Line Potential by Industry by Employee Size
• VI-43 Time Warner: Internet Service Offerings
• VI-44 Mellenium: Small Enterprise Line Potential by Industry by Employee Size
• VI-45 WOW! Small Business Internet and Voices Services

Chapter VII

• VII-1 ACS Small Enterprise Business Line Potential
• VII-2 ACS Business High-Speed Offerings
• VII-3 ACS Business Phone Service Offerings
• VII-4 AT&T Small Enterprise Business Line Potential
• VII-5 AT&T Business High-Speed Offerings
• VII-6 BellSouth Small Enterprise Business Line Potential
• VII-7 BellSouth Business High-Speed Offerings
• VII-8 BellSouth Business Telephone Offerings
• VII-9 CenturyTel Small Enterprise Business Line Potential
• VII-10 CenturyTel Business High-Speed Offering
• VII-11 Cincinnati Bell Small Enterprise Business Line Potential
• VII-12 Cincinnati Bell Business High-Speed Offering
• VII-13 Cincinnati Bell Business Telephone Offerings
• VII-14 Citizens Small Enterprise Business Line Potential
• VII-15 Citizens Business High-Speed Offerings
• VII-16 Citizens Business Telephone Offerings
• VII-17 Embarq Small Enterprise Business Line Potential
• VII-18 Embarq Business High-Speed Offerings
• VII-19 Embarq Business Telephone Offering
• VII-20 Hawaiian Telecom Small Enterprise Business Line Potential
• VII-21 Hawaiian Telecom Business High-Speed Offering
• VII-22 Iowa Telecom Small Enterprise Business Line Potential
• VII-23 Iowa Telecom Business High-Speed Offerings
• VII-24 Qwest Small Enterprise Business Line Potential
• VII-25 Qwest Business High-Speed Offerings
• VII-26 Qwest Business Telephone Offerings
• VII-27 TDS Small Enterprise Business Line Potential
• VII-28 TDS Business High-Speed Offerings
• VII-29 Verizon Small Enterprise Business Line Potential
• VII-30 Verizon Business High-Speed DSL Offerings
• VII-31 Verizon Business High-Speed FIOS Offerings
• VII-32 Windstream Small Enterprise Business Line Potential
• VII-33 Windsteam Business High-Speed Offerings
• VII-34 Windstram Business Telephone Offerings

Chapter VIII

• VIII-1 ACS: MSO Competitors by Line Size
• VIII-2 AT&T: MSO Competitors by Line Size
• VIII-3 Bellsouth: MSO Competitors by Line Size
• VIII-4 CenturyTel: MSO Competitors by Line Size
• VIII-5 Cincinnati Bell: MSO Competitors by Line Size
• VIII-6 Citizens: MSO Competitors by Line Size
• VIII-7 Embarq: MSO Competitors by Line Size
• VIII-8 Hawaiian Telecom: MSO Competitors by Line Size
• VIII-9 Iowa Telecom: MSO Competitors by Line Size
• VIII-10 Qwest: MSO Competitors by Line Size
• VIII-11 TDS: MSO Competitors by Line Size
• VIII-12 Verizon: MSO Competitors by Line Size
• VIII-13 Windstream: MSO Competitors by Line Size