SOURCE: Pike & Fischer

April 30, 2007 14:10 ET

Cable Companies Could Make Up to $11 Billion per Year in Business Market by 2012, but Will Face Soaring Labor Costs, Pike & Fischer Predicts

SILVER SPRING, MD -- (MARKET WIRE) -- April 30, 2007 -- Cable companies are well-positioned to draw new business from small and medium-sized businesses, but will likely see their labor costs rise dramatically as a result, market research firm Pike & Fischer concludes.

In a new report on the U.S. cable industry's growing pursuit of business customers, P&F forecasts that cable operators can achieve commercial revenues of $10 billion-$11 billion per year by 2012. But the cable companies will face escalating salary costs as they invest heavily in the "human infrastructure" required to penetrate the business market, the report says. In addition, P&F predicts that labor unions will increase efforts to gain a foothold in cable company workforces.

Cable companies will also be devoting increased capital spending on physical facilities, as well as on operations and business support systems, says Tim McElgunn, Chief Analyst at Pike & Fischer's Broadband Advisory Services and author of the report. Going forward, MSOs absolutely must approach OSS strategically and ensure that they are buying and applying the right tools to the right job.

"Ongoing improvements in terms of ordering, billing and service-provider interactions are absolutely critical to continued success in the SMB market. Those improvements will not be economically achievable unless and until highly capable and scalable OSS and BSS systems are specified, installed, integrated, tested and optimized," adds Tim.

Pike & Fischer, a BNA company, offers a host of legal and business information products covering the telecommunications industry. This new report, Cable Commercial-Services Strategies, is priced at $1,999 and can be purchased at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Tim McElgunn at 856-751-6723 / tmcelgunn@pf.com. For an executive summary, contact Scott Sleek at 800-255-8131 / ssleek@pf.com.

For more information about Pike & Fischer's Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 212-576-8741 / jping@pf.com.

Contact Information

  • For analyst commentary or to request a briefing, contact:
    Tim McElgunn
    856-751-6723
    Email Contact

    For an executive summary, contact:
    Scott Sleek
    800-255-8131
    Email Contact