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Cable Commercial Services a Reality?

As part of a media briefing this afternoon on cable commercial services, one of the Motorola execs on the line unearthed a white paper on using DOCSIS 3.0 for the enterprise from 2009. The stats quoted are now a year out of date, but I still think they’re worth sharing. First of all, SNL Kagan estimated that commercial services for MSOs in the US generated $3 billion in 2008. That doesn’t sound terribly impressive, except that Kagan also projected that number would rise to nearly $10 billion in 2012. Moreover, Motorola was able to corroborate Kagan’s general analysis, reflecting that MSOs in 2009 appeared to be experiencing upward of 20% annual revenue growth from the provision of high-speed data services to business customers.

Cable has long talked about the potential for growth in commercial services, but reality has lagged behind the industry’s vision. That may finally be changing now that residential broadband speeds are approaching 50 and 100 Mbps in some areas thanks to DOCSIS 3.0.

Interestingly, commercial services represent a particularly valuable niche for operators because peak usage times in the workplace directly counter peak usage times for subscribers at home. Nice way to get more revenue from existing infrastructure.