Windstream's management is making necessary investments in its business to meet consumer and enterprise demand for additional bandwidth, according to the analysts at Jefferies. However, the firm warned that Windstream's legacy business-- in small business ILEC/CLEC, carrier services and regulatory revenue-- will continue to decline for the foreseeable future.
Verizon ended its self-imposed FiOS FTTH service deployment moratorium in April, announcing plans to build out FTTH to Boston. Under a six-year plan, Verizon will invest $300 million to replace the city's aging copper network infrastructure with fiber. Why the sudden about-face?
Cox Business is proving that cable's presence in the business services market is far more than just a throwaway line at the end of cable company earnings calls.
Just a few years ago, the large, diversified bucket known as "business services" was a throw-away line at the end of cable company earnings calls. Sure, the revenue was growing, but we weren't talking about real money. Well, as Cox Business Senior Vice President Steve Rowley will tell you, $2 billion — a figure his division stands to bring in this year alone — is real money.
With so much focus being on wireless much of the world seemingly has forgotten that Sprint has a profitable wireline business. The company is working to change that attitude by launching a separate wireline division dedicated to its business customer base. Leading this segment is 10-year company veteran Mike Fitz.
GTT Communications' business services growth may seem like an anomaly, but what sets the company apart from the pack is that unlike incumbent telcos such as AT&T and Verizon it does not have to deal with a declining TDM services base.
Cable One, like other cable MSOs, is seeing its once-predictable video cash generator continue to decline, but the company's CEO Thomas Might said new growth will come from two sources: broadband and business services.
Midco has struck a cooperative agreement with Arvig, giving it an additional 4,000 fiber route miles to address new and existing business service opportunities in Minnesota.
Windstream's decision to segment its business services into three areas-- SMB, enterprise and carrier-- appeared to pay off in the fourth quarter of 2015 as it reported that enterprise revenue climbed 4.6 percent year over year to $498 million, while its carrier services saw a sequential rise of $2 million to $171 million.
Charter's business services division is reaping the benefits of realigning the unit to focus on the specific needs of small businesses and larger enterprise customers as revenues rose 12.3 percent year-over-year to $294 million.