Advancing fiber infrastructure pushes broadband market to new heights

Oct. 1, 1999

The continued deployment of fiber-optic networks and hybrid fiber/coaxial (HFC) architecture is enabling broadband cabling companies to offer a full array of service options, while providing a healthy market growth since 1996. The ability to become full-service providers is broadening the horizons for cable companies with the increased popularity of "one-stop shopping."

A new report by Frost and Sullivan, an international marketing consulting and training company in Mountain View, CA, provides a complete market-engineering analysis of the cable-voice services industry. The report, U.S. Cable Telecommunications Services Markets, includes revenue and subscriber forecasts, and pricing and market-share analyses.

Broadband-cabling revenues are experiencing growth because of several factors, including an increase in service availability through continued development of fiber-optic networks. Other catalysts include aggressive market strategies among providers and an increased demand for multiple services from a single point of contact.

The report identifies several major trends in the U.S. cable-wireline-voice-services market: bundled packages of voice- and cable-TV services; implementation of integrated billing systems; heavy investments in cable-system upgrades and development of advanced fiber networks; targeting of residential customers in cable-voice services offerings; and partnerships between cable-voice service providers and interexchange carriers.

The emergence of cable-voice services not only signals a new era in the cable industry, but also modifies the dynamics between cable service providers and cable-TV users.

The capability to become full-service providers, rather than focusing on their core video business, has enabled a number of cable companies to diversify their investments through the provisioning of cable-voice services.

Frost & Sullivan expects more cable companies to expand their product portfolios through strategic alliances and partnerships. Additionally, the ultimate goal to become full-service providers will increase the number of new industry participants and fuel market growth.

The report is available from Frost & Sullivan by calling (650) 961-9000, fax (650) 961-5042, or through the company's Website at: www.frost.com.

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