Cable Companies Mean Business

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As soon as I finish writing up this post, I will be uploading it to this blog thanks to my cable modem (I work out of my home). I don't get cable television, however. We have satellite television and no, we don't use Vonage. We're old school and still use a phone company for our phone service. All of this drives my local cable company crazy.

I must get two doses of junk fliers from them every week begging me to bundle with them. They really want me to fire my satellite television and phone service providers and put all my communication eggs in one basket - theirs.

Apparantly, it's not just residential types they're now going after so aggressively. The new target is you - the small to midsize business owner.

According to a new study put out by Insight Research Corp., the 20 biggest cable television operators are starting to go after the business market with a vengence. And yes, they'd love to hook you up with cable in the breakroom. But, what they really want is to be your new phone company.

This leaves the telecos quaking in their boots, and for good reason.

Consider this, there are seven million small businesses in the United States. 6.5 million are within the market reach of one of those top 20 cable operators. According to Insight's new survey, 1.5 million existing phone lines will be wooed over to cable by the end of this year. 10 million lines (keep in mind, most businesses have multiple lines) are expected to follow suit over the next five years.

Back to those junk fliers I get every week. So far, I haven't bitten. But others have. In some markets, up to 20% of phone customers have swtiched to cable-based telephony. Apply those figures to the small to midsize business market and you see why the phone companies are getting nervous.

Last updated: Apr 12, 2007




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