INTELLIGENCE FROM THE BROADBAND ECONOMY

There's a segment of the industry that is facing increased competition for its core revenue stream and is desperately searching for new markets to tap. Sound familiar? The cable industry is essentially going through the same spasms as telcos, worried that revenue from video continues to decline while cable modem additions are growing but at a slower pace. For some, one remedy lies in using broadband infrastructure to tap into the business segment. According to a recent study from Kagan Research, cable operators will be able to reach 60% of U.S. businesses by 2009 and generate total revenue for commercial data and voice services of more than $10.7 billion during that time. Among cable's best plays, according to Ian Olgeirson, Kagan senior analyst, is going after “both value-based and underserved customers, particularly in the small and medium business categories.”