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American companies consume $130-billion worth
of telecommunications services each year. The next largest slice of the telecom
pie is wireless communications at $75 billion. Video services are new to the
mix, but still worth $70 billion. The cable TV industry is 60
years old, but the smallest market segment at $65 billion.
So what's next for cable television's
multisystem operators (MSO)? "The enterprise segment", explains Robert Rosenberg
of Insight Research. Although cable TV is known mainly for providing services
to residential customers, cable's "greatest opportunity" is in selling telecom
services to U.S. businesses.
Over the next five years, Rosenberg
estimates that the cable TV industry can generate $700 million in new revenues through
commercial services. "Continued cable industry consolidation," he explains,
will create larger systems that can "match the capabilities the telcos have
long provided".
What might more competition
for commercial customers mean for the residential market?
Source: Wireless Design & Development
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