Comcast Business Q2 business revenue rises 4% on enterprise, mid-market customer gains

July 31, 2023
Cable MSO’s business services growth was impacted by slowness in the small business market.

Comcast Business made gains in its business services segment, showing that cable is a growing threat to the telcos. Business Services Connectivity revenue rose 4% to $2.3 billion due to an increase in revenue from small, medium-sized and enterprise customers.

During Comcast’s second-quarter earnings call, Jason Armstrong, CFO of Comcast, told investors it saw “more robust growth in enterprise and mid-market and a slight deceleration in growth from small business, where we see a bit of macro-economic pressure.”

Business services were one of the contributors to growth in its connectivity business segment. “Our core connectivity businesses, domestic broadband, domestic wireless, international connectivity, and Business Services Connectivity increased 7% to over $10 billion in revenue,” Armstrong said.

Increasing on-net fiber share

Cable operators overall continue to advance their on-net commercial fiber reach.

While it trails fellow cable MSO Spectrum Enterprise and three telcos—AT&T, Verizon, and Lumen—Comcast Business has continued increasing the number of on-net commercial buildings where its fiber is connected.

Comcast was ranked fifth on Vertical Systems Group’s 2022 U.S. Fiber Lit Buildings LEADERBOARD. According to the research firm, fiber providers qualify for this benchmark with 15,000 or more on-net U.S. fiber-lit commercial buildings.

Ethernet rising

Like its fellow cable operator Spectrum Enterprise, Comcast Business has also become a growing force in the Ethernet services market segment.

The cable MSO once again held the fifth spot on the top six companies on Vertical Systems Group’s 2022 U.S. Carrier Ethernet LEADERBOARD. The list also includes AT&T, Verizon, Spectrum Enterprise, Lumen, Comcast Business, and Cox Business.

According to VSG, providers must have 4% or more of the U.S. retail Ethernet services market to qualify for a rank on this LEADERBOARD. Dedicated Internet Access (DIA) has remained a top seller across the six Ethernet segments tracked by Vertical Systems Group.

VSG found that it sees either “declining or no significant growth for the other five segments, including Ethernet Private Lines, Ethernet Virtual Private Lines, E-Access to VPN, Metro LAN, and WAN VPLS.”

However, VSG noted that all Ethernet providers are not immune to “ongoing supply chain issues, price compression, customer migration to SD-WAN and broadband services, an expanding competitive landscape, and economic uncertainties.” 

For related articles, visit the Business Topic Center.

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About the Author

Sean Buckley

Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.

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