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Cable MSO Opportunity in Enterprise Market

Light Reading reports that instead of waging a costly war with the telcos over video subscribers, cable companies should go on the offensive in the $100 billion U.S. enterprise market. So says a new report titled "Cable vs. Telcos: The Battle for the Enterprise Market."

Heavy Reading analysts conducted surveys with 112 people responsible for purchasing telecom services for U.S. enterprises. The results showed that many U.S. businesses, especially small- and medium-sized ones, are comfortable with the idea of buying their telecom services from the cable guys.

The telcos have traditionally won the lion's share of the enterprise business in the U.S. while the MSOs have failed to make meaningful inroads, says Sterling Perrin, the Heavy Reading analyst who penned the report. Cox Communications Inc. , for example, is regarded as the most aggressive MSO in the space yet makes only 6 percent of its revenue there.

Heavy Reading's research shows that the cable guys are too preoccupied with rolling out consumer VOIP and defending their customer bases against telco IPTV to make a serious run at the enterprise market.

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