Business Will Boom For Cable


The cable industry could be looking at a $10 billion-$11 billion market in business customers for their services by 2012, according to a new study form BNA's Pike & Fischer (P&F) unit.

That is compared to an estimated $1.2 billion-$1.5 billion in commercial business revenue in 2006, says the study, with the lion's share of that going to Cox.

P&F says the cable business is in good position to get new business from small and mid-sized businesses. According to a spokesman for the company, Comcast has been particularly aggressive in pursuing business customers and is the "one to watch," with Cablevision and Time Warner also growing their business businesses.

The downside, at least for the bottom line, is that cable companies' labor costs will rise "dramatically" given the human capital necessary to penetrate the business market, says the study.