Abstract
Cable companies have been on a fast track, upgrading their networks to provide
integrated digital video, high-speed data and voice services- which means
incumbent telcos now face stiff competition from cable operators aiming to
supply small enterprise customers with a bundled services. With competitors
like Cox Communications, CableVision, Comcast, Charter, Time-Warner, and other
top-tier cable operators launching telephone services to small business, the
ILECs face a situation comparable to what AT&T faced in the years just after
Divestiture.
In this new research study, Insight examines a highly accessible (and
lucrative) market for cable' s value-added services. TV ad insertions for cable
telephony services are targeted at some 73 million cable customers, and take
rates for telephony offers have approached 20 percent in some markets. In this
report, Insight Research analyzes the telephony and enhanced services that
cable providers currently offer small businesses using four delivery options:
standard telephony, channelized HFC, dedicated modem and shared modem service.
Based on this examination, Insight quantifies the addressable market
opportunity for cable companies in two-way capable cable markets, and measures
the competitive risk they pose to the incumbent telephone carriers located
within the cable systems' service areas.
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