Comcast (NASDAQ: CMCSA) has launched a new unit that will offer business services to large Fortune 1000 business customers in the U.S., putting them in direct competition with large telcos AT&T (NYSE: T) and Verizon (NYSE: VZ).
While Comcast has been offering business services for a number of years, what's different about this latest drive is that it will offer services to large businesses in and outside of its network area, something that it had not traditionally done.
In order to deliver business services outside of its territory, Comcast Business has established NNI (network to network interconnection) wholesale agreements with a number of other cable MSOs including Cox Communications, Time Warner Cable (NYSE: TWC), Charter Communications Communications (NASDAQ: CHTR), Cablevision (NYSE: CVC) and Mediacom.
Similar to the medium and small business markets it serves, the new enterprise-grade organization will extend its growing portfolio of managed solutions that include broadband, Ethernet, voice, router, security, business continuity and Wi-Fi services. The new product portfolio will be branded "Managed Enterprise Solutions."
Thanks to its recent acquisition of Contingent Network Services, the new Comcast Business unit will also offer managed services to large customers. Contingent, which will retain its brand as a subsidiary of Comcast Business, will assist the new unit in technology deployment particularly for those enterprise customers that outsource their day-to-day network operations.
Leading the new division is Glenn Katz, a technology industry veteran who served as the former CEO of SpaceNet.
Comcast Business' said its new division already signed large customers from multiple industries, including financial services firms, banks, hospitality chains and retailers.
Building out a division to handle larger business services makes sense for Comcast as it needs to offset continued losses in its traditional video business. During the second quarter the operator lost 69,000 TV subscribers as more customers drop their cable subscriptions for online video services like Netflix.
- see the release
- Bloomberg has this article
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