Cable giants tune in to small firms
May 24th, 2007

The above headline in the Chicago Tribune Technology section today captions an analysis of what may be one of the significant changes coming soon in the complex arena of communications infrastructure:

Big cable operators are targeting the small and medium-size business market in a fight for turf that phone companies have had to themselves until now.

Companies such as Cox Communications Inc., Time Warner Inc. and now Comcast Corp. have recently announced that they will provide small businesses with voice and data services, a potentially lucrative market that can bring three to four times as much revenue per customer as residential services.

A recent study by The Insight Research Corp. noted that among an estimated 7 million small businesses located in the United States, about 6.4 million are located in areas served by cable TV.

“Serving this market is a no-brainer for the cable industry,” said Robert Rosenberg, president of Boonton, N.J.-based Insight. “For the same effort it takes to win a residential customer that you may send monthly bills of $40 you can win a business customer whose monthly bill might be $200.”

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