Report: Cox gains momentum in SMB, wireless backhaul markets

Cox Communications' efforts to take a chunk out of the SMB and wireless backhaul markets from continues to pay off and is getting the attention of Sanford Bernstein senior analyst Craig Moffett.

Moffet, who chronicled Cox's growing presence in the SMB market in a report, revealed that business services make up 11 percent of Cox's overall revenue. Fellow MSO Cablevision (NYSE: CVC) is not far behind with business services making up 10 percent of their respective revenue.

In addition to voice, the other big growth areas for Cox are clearly Ethernet and wireless backhaul. For a number of quarters, Cox Business has held the number four spot on Vertical System Group's Ethernet Leaderboard, a twice-a-year report chronicling Ethernet port share of U.S.-based service providers. And as of the end of 2009, Cox Business estimated that wireless backhaul made up 11 percent of wholesale business revenues.

Amongst the large cable MSOs, Cablevision and Cox have a leg up on Time Warner Cable (NYSE: TWC-WI) and Comcast (Nasdaq: CMCSA), where business services make up on 5.9 percent and 3.6 percent of their overall revenue.

Although it may trail Cablevision and Cox, Comcast has built up a sizeable SMB business and is rumored to be putting elements in place to target the large enterprise business segment. Reports emerged earlier this year that Comcast is going to build out fiber facilities in city and suburban sites to deliver fiber-based wireless backhaul and carrier Ethernet services.

For more:
- Multichannel News has this article

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