Time Warner Cable Inc.
(
TWC
) has initiated a strategy to deliver Ethernet services to its
business services customers over the company's existing DOCSIS
3.0 network. Major Cable operators in the U.S. are aggressively
deploying high-speed Wideband network based on DCOSIS 3.0
technology as a cost effective bandwidth enhancing solution. The
combined DOCSIS 3.0-Ethernet solution sets a terget of achieving
320 Mbps downstreame and 120 Mbps upstreame speed for business
enterprises.
In fact, DOCSIS 3.0 is helping the cable MSOs to explore some
new markets which were hitherto unexplored by them. The loss in
the basic video market are now getting more than recovered in the
broadband services segment especially in the high-speed Internet
access market. The business services segment is gradually
becoming a major source of revenue. In the third quarter of 2012,
this segment generated revenue of $493 million, up 27.4% year
over year. Beside, year-to-date revenue of the business services
segment was $1,386 million, showing an improvement of 30.8% year
over year. We expect this segment to contribute almost $2 billion
to the top line of Time Warner Cable in 2012.
Like its closest peer
Comcast Corp.
(
CMCSA
) and
Cablevision Systems Corp.
(
CVC
), Time Warner Cable continues to lose residential video
subscribers year after year. Massive competition from fiber-based
TV services of telecom operators and much cheaper online
streaming services provided by some companies are the primary
reasons for this pathetic condition of the cable TV
operators.
The deployment of DOCSIS 3.0 becomes essential for cable MSOs
since preference for video-on-demand (watching movie on the
Internet) has increased significantly among customers. Another
potential future growth area for cable MSOs is the small &
medium sized business segment. Various industry researches
estimate that the SMB segment is a $30 billion market
opportunity.
COMCAST CORP A (CMCSA): Free Stock Analysis
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CABLEVISION SYS (CVC): Free Stock Analysis
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