Comcast Corporation
(
CMCSA
) - the largest cable MSO in the U.S. has entered into an
agreement with Olympusat Telecom, whereby the latter will be
using Comcast's Ethernet service. Olympusat Telecom is a
subsidiary of Olympusat Holdings, Inc. and it offers complete
video distribution solutions for media companies.
Olympusat Telecom generally operates in the United States and
Latin America and offers various video broadcasting related
services that includes satellite uplink, master control, video
transport, digital production and content delivery networks and
services.
Demand for HD related videos have increased lately, so
delivering HD videos requires huge bandwidth. Moreover, the
company's growing client base, including popular companies like
AT&T
(
T
),
Directv
(
DTV
) and
Time Warner Cable
(
TWC
) have forced Olympusat Telecom to use Comcast's business class
Ethernet service. This service will not only provide more
bandwidth to Olympusat Telecom, but will also lend support to
digital production services and back office operations.
Presently, Olympusat Telecom is using 500 Mbps ethernet
connection from Comcast, which can be expanded to 2 Gbps when
required.
Comcast business class Ethernet service targets small, medium
and large enterprises and offers faster and secure network
services to its clients. The company's continuous loss of
residential video subscribers is well mitigated by the increased
penetration of the business class subscribers. So the company
remains focused to expand its business class segment by offering
huge array of services like Ethernet services, Voice over
Internet Protocol (VoIp) service and internet service of 100 Mbps
through Docsis 3.0 technology.
In the previous quarter, Comcast's high speed Internet service
business, which generally caters to business clients, generated
more than $2.5 billion revenue and is showing strong signs of
growth.
The company's popular Xfinity service, which offers triple
play service (voice, video and data), is gaining huge popularity.
Thus, we believe that continuous launch of new value added
services coupled with completion of deployment of Docsis 3.0
technology will attract more business clients going forward.
Currently, we are maintaining our long-term Neutral
recommendation on Comcast. Comcast has a Zacks#2 Rank, implying a
short-term Buy rating on the stock.
COMCAST CORP A (CMCSA): Free Stock Analysis
Report
DIRECTV (DTV): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research