Cable TV Operators Targeting Small Business Phone Customers Means Phone Companies Lose $4 Billion Over Five Years, Says Insight Research Corp.

Apr 04, 2007, 01:00 ET from Insight Research Corp.

    BOONTON, N.J., April 4 /PRNewswire/ -- The top 20 cable operators are
 ramping up to grab a slice of the lucrative small business phone market, a
 move that could cost incumbent phone companies more than four billion
 dollars over the next five years, says a new market research report from
 Insight Research Corp. Incumbent phone companies are expected to loose more
 than 1.5 million small business phone lines to cable competitors by the
 close of 2007 alone, and nearly 10 million small business phone lines over
 the next five years, according to the new research study.
     According to Insight's newly-released market analysis report, "Cable
 Telephony: The Threat to Small Enterprise ILEC Markets 2007-2012," fierce
 competition-long a hallmark of MSOs and phone companies that provide
 residential telephone and broadband data services-is now spilling over in
 the small business market. On a per-customer basis, the revenue associated
 with providing a small business with data and voice services can generate
 three to four times the revenue of the residential customer buying a bundle
 of voice, data, and video services, which makes the competition for these
 customers all the more turbulent.
     "Recent announcements by Comcast and Time Warner Cable make it plain
 that the small enterprise is the next battleground in the cable versus
 phone company fight," says Robert Rosenberg, President of Insight. "We
 looked at the 20 largest cable operators that together have within their
 operating footprints about 6.5 million out of more than seven million small
 businesses in the US. MSOs such as Comcast, Cox, and CableVision have the
 offers and the reach, and they are going to have a definitive impact on
 phone companies' bottom line over the next few years," Rosenberg concludes.
     A free report excerpt, table of contents, and ordering information is
 available online at This
 161-page report is available immediately for $3,995 (hard copy). Adobe
 Acrobat (PDF) report licenses are also available.
     This release was issued on behalf of the above organization by
 Send2Press(R), a unit of Neotrope(R).

SOURCE Insight Research Corp.