Report: Cable MSO broadband and telephony sales to surge through 2008

MAY 19, 2008 -- The cable MSOs have had to intensify their sales and marketing efforts at a local level to extend their reach into the bandwidth-intensive voice and data areas. Nowhere has this activity been more forceful than in the fight for the lucrative small and medium sized business (SMB) market, reveals a new report from New Paradigm Resources Group Inc.

MAY 19, 2008 -- While cable companies have been pursuing broadband and telephony options for many years, their core video programming market has been under attack by satellite providers and, more recently, by the incumbent telcos. In response, the cable multiple systems operators (MSOs) have had to intensify their sales and marketing efforts at a local level to extend their reach into the bandwidth-intensive voice and data areas. Nowhere has this activity been more forceful than in the fight for the lucrative small and medium sized business (SMB) market, reveals a new report from New Paradigm Resources Group Inc.

Key findings of the report include the following:
• Cox had a recent special promo in Oklahoma City for a "telecommuter" Internet package of 9 Mbits/sec x 1 Mbit/sec for $89.95. This offer requires bundling the service with digital phone as well as signing a three-year contract. 

• Comcast is actively building its Chicago fiber network to accommodate business customers, and it expects to have these services available to most of the city "within six months." 

• Charter generally offers discounts of 15% for double-play bundles and 20% for triple-play bundles. However, in select markets, the company will run quarterly promotions with price reductions over and above these percentages.  

"As new competitors emerge and traditional competitive tactics evolve, an in-depth understanding of just how things are changing 'on the street' becomes increasingly crucial to a company's overall competitive strategy�and bottom line," says Dean Perrine, NPRG's director of competitive monitoring and analysis. "But service providers need this data on a specific and real-time basis in order to quickly react to the dynamic sales and marketing activity in individual markets."

NPRG says its "Winning Telecom Market Share: Cablecos' Tactics" is based on extensive direct research of the key U.S. cable operators as well as product and pricing surveys of numerous pivotal "battleground" metro market areas. Thereport identifies and details the key competitive tactics being deployed by the most successful cable operators as they continue to make inroads into the traditional ILEC broadband and telephony "sweet spots" by offering a parallel suite of services designed to compete directly with the traditional telecom providers. 


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