As Cincinnati Bell continues to expand its Fioptics FTTH network to more homes throughout Cincinnati, the service provider is working to enhance its connection to local businesses served by Time Warner Cable (NYSE: TWC).
Similar to its cable MSO peers, Time Warner Cable has been able to win over business customers for data and voice services using a mix of its HFC and even fiber-based facilities.
Ted Torbeck, CEO of Cincinnati Bell, said during the third quarter earnings call that in 2016 a key focus will be on driving more fiber into new buildings where Time Warner Cable has been able to beat the telco with higher speed services.
By building fiber into more businesses, Cincinnati Bell will be able to increase its market share by regaining former customers or singing on new ones.
"Where Time Warner has gained some advantage is at the businesses that we don't have fiber built to," Torbeck said. "So going back and winning that business, and then the possibility of offering more services on the IT side, is an option that we're constantly looking at."
In addition to expanding its in-region business fiber reach, the service provider hinted again at expanding its fiber into territories outside of Cincinnati, but it did not provide any specific details.
"Capital deployment in and out of territory, we are actually looking right now at plans to deploy network on test environments in different regions surrounding Cincinnati," said Leigh Fox, CFO of Cincinnati Bell. "So we are actively looking at it."
The timing to expand its in-region and out of region fiber to serve more business and carrier opportunities is quite ripe to potentially increase its strategic business revenues.
It reported third-quarter strategic business revenue was $44 million -- including $3 million of Fioptics revenue -- for the quarter, up $4 million year-over-year after excluding revenue for services provided to its wireless operations. At the same time, the IT Services and Hardware Segment results were a bit of a mixed bag with overall revenue declining 3 percent year-over-year to $117 million.
- hear the earnings webcast (reg req.)
Cincinnati Bell passes additional 25,800 homes with Fioptics service, sees increased cord cutting
Cincinnati Bell pans minimum broadband speed requirements for Lifeline eligibility
Cincinnati Bell capitalizes on enterprise, wireless operator dark fiber interest
Cincinnati Bell: 30 Mbps is our broadband sweet spot
Cincinnati Bell seeks to expand business, wholesale services influence in new territories