Comcast Business’s Q3 revenues rise to $2.6B amidst fixed wireless access (FWA) competition
Comcast Business is holding its own in the business services market, battling fixed wireless access (FWA) competition with a growing share of mid-market and large enterprise business customers.
The cable MSO sees its business services total revenue base approaching $10 billion within an addressable marketplace at over $60 billion.
During the third quarter, Business Services Connectivity revenue rose 6.2% to $2.6 billion. Likewise, business services EBITDA rose 4.5% to $1.5 billion.
Jason Armstrong, CFO for Comcast, said while its small to medium business (SMB) segment is facing a strong challenge from FWA competitors like Verizon, its dedication to next-gen services like cybersecurity, SD-WAN, and mobile is paying off.
“In the SMB segment, we're seeing elevated competition, particularly from fixed wireless,” he said. “Despite this, we still delivered modest revenue growth by driving ARPU higher through increased adoption of our advanced services like cybersecurity, cloud solutions and Comcast Business Mobile.”
Shaking up enterprise, mid-market
As it battles FWA in the small business market, Comcast Business continues to make inroads in the mid-market and large enterprise segment.
Comcast Business has continued to gain ground in key areas like cybersecurity and SD-WAN.
Its work is paying off as the cable MSO reached the number one ranking on Vertical Systems Group’s (VSG) 2024 U.S. SD-WAN LEADERBOARD for the first time, showing ongoing shifts in the segment.
According to VSG, the company has steadily risen in the SD-WAN market segment from its eighth position in 2018.
The service provider has advanced its position in SD-WAN for mid-sized and enterprise business customers through its own organic actions and acquisitions of specialized providers such as Nitel and Masergy.
By acquiring Masergy, a specialist in SD-WAN, unified communications, and cloud services, in 2021, Comcast enhanced its capabilities to serve large and mid-sized companies, particularly those with global operations.
Likewise, Comcast Business's acquisition of Nitel deepened its cloud-based network capabilities. Along with its IT-managed network and security solutions, Nitel has 6,600 clients nationwide in financial services, healthcare, and education.
David Watson, President and CEO of Comcast Cable, said the combination of enhancing its service sets with working to understand business customers' needs.
“We are the challenger when it comes to mid-market and enterprise,” he said. “And there's just upside as you look at how the strategy has come together around expanding relationships.”
Watson added that “we are adding more capability and more value and the additional services.”
The mobile factor
Comcast Business’s rise in the business services market is not just about its wireline offerings.
Like its telco business service challengers AT&T and Verizon, Comcast Business sees the value that mobile service has for its business customers.
The key to finding further success in mobile business services is its T-Mobile relationship.
Along with fellow cable MSO Charter, Comcast entered into a multi-year exclusive agreement with T-Mobile to utilize its network to deliver mobile services to its business customers across the U.S. Service is set to launch in 2026.
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Also, here's coverage of other key stories on Comcast:
- Comcast’s CEO says T-Mobile pact will enhance business market share
- Comcast Business’ Nitel acquisition enhances its managed networking capabilities
- Comcast Business ramps up its larger business presence, but small business challenges remain
- Comcast Business’ revenue base is approaching $10 billion
- Comcast Business advances to top rank on Vertical Systems Group’s 2024 U.S. SD-WAN LEADERBOARD
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Charter and Comcast’s wireless partnership will leverage T-Mobile's advanced mobile network through a long-term Mobile Virtual Network Operator (MVNO) relationship. The MVNO will expand Charter’s and Comcast’s ability to deliver wireline and wireless offerings.
Watson said that “we're just getting going in terms of mobile in the business services market.”
“We're thrilled to have a great relationship with Verizon, as noted, but we're thrilled to have the new relationship with T-Mobile to be able to go after the Business Services side of things,” he said. “Mobile is just one more great product to add to the portfolio, around everything else that we're doing.”
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About the Author
Sean BuckleySean Buckley
Sean is the Editor-in-Chief of Lightwave. He establishes and executes Lightwave's editorial strategy across its website, email newsletters, events, and other information products. Before coming to Lightwave in July 2023, he served as editor of Broadband Communities. Earlier, he served as senior editor of FierceTelecom and the editor of the former Telecommunications Magazine. He got his start in the optical industry in 1998 when he became the editor of enterprise and optical networks at Information Gatekeepers. He has a BA in English from the University of Massachusetts, Boston, and lives in Dracut, Mass, with his wife, two sons, and his cat, Dove.
