Time Warner Cable Inc.
), the second-largest cable TV operator in the U.S. is gradually
strengthening its foothold in the small and mid-sized business
The company generated $1,696 million revenues from this
segment in the first nine months of 2013, an improvement of a
whopping 22.4% year over year. Time Warner Cable is expected to
generate nearly $2.5 billion revenues from the SMB segment in
2013. Meanwhile, management stated that it will double this
figure to over $5 billion in the next four to five
The SMB segment has posed a huge growth opportunity for the
cable TV industry. Significant improvement in business data and
video traffic is expected to act as a future growth catalyst for
Furthermore, managing wireless backhaul traffic for the mobile
towers has also opened up a multi-billion dollar market. Cable
operators are now gradually offering innovative wireless
broadband services to their business customers in order to
maintain this momentum.
Large cable TV operators such as
) and Time Warner Cable are immensely exploring the SMB segment
as a counter-strategy to protect their loss in the legacy
video-offering market where telecom giants like
Verizon Communications Inc.
) are aggressively offering fiber-based video services.
Currently, the market size of the U.S. Business Services
segment is approximately $8 billion. Various industry research
studies estimate that the SMB segment is expected to offer a
market opportunity worth $20 billion to $30 billion.
Within the SMB segment, Time Warner Cable is particularly
targeting the wholesale businesses such as mobile backhaul
service to wireless operators and managed services in the small
cell backhaul space.
For mobile backhaul, the company deploys its
fiber-to-the-tower (FTTT) networks and for small cell backhaul
the company uses a bundle managed service of line-powered hybrid
fiber-coax networks, pole attachment rights, building access
rights and trained technicians' support.
Time Warner Cable currently has a Zacks Rank #3 (Hold).
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