Taking the business services tack toward profitability is a relatively recent move by cable MSOs including Charter Communications (Nasdaq: CHTR), whose Charter Business division has moved aggressively in the past year to expand its Ethernet reach beyond metro areas and serve small to medium businesses in the U.S. heartland. Among the leadership making that happen is Jim McGann, senior vice president of Charter Business.
McGann is a 27-year telecom veteran who led sales divisions at several service providers following management stints at Frontier (NYSE: FTR), Siemens, IBM and NYNEX, now Verizon (NYSE: VZ). Since 2005, he's led Charter Business' aggressive Ethernet drive, expanding the business by more than 32 percent between 2005 and 2008 alone.
Charter was among the first cable operators to focus more effort on not only grabbing business voice customers but providing competitive services that would lure them away from traditional telcos. Making that move has made a difference in its financial outlook as Charter emerged from a nine-month Chapter 11 reorganization in 2009, and helped boost its 2010 revenues to $7 billion despite the ongoing loss of consumer video subscribers that all MSOs are experiencing.
McGann and Charter Business have done this by not only expanding their Ethernet reach but also by adding carrier-level interconnect capabilities in five U.S. locations, including Atlanta, St. Louis, Mo., Worcester, Mass, and two in Los Angeles.
"We are strategically focused on the carrier market; enabling high-capacity, fully redundant interconnect capabilities via either a private cross-connect or our Carrier Ethernet Exchange partners," McGann said in the interconnect announcement in March 2011.