Time Warner Cable (NYSE: TWC) is highlighting its growing portfolio of backhaul services, noting in a blog post that the company has nearly 20,000 cell towers wired for cellular backhaul service. That figure is important because it shows how important wholesale services have become to cable MSOs, particularly as residential video subscriber numbers are dropping.
In fact, Time Warner Cable reported in its second quarter earnings that its business services revenue growth was primarily due to increases in high-speed data and voice subscribers and growth in wholesale transport revenue (including cell tower backhaul revenue). Wholesale transport accounted for $120 million in revenues in the second quarter, up from $97 million in second quarter 2014.
According to Vertical Systems Group, cable is the fastest growing segment in the wholesale and retail business Ethernet markets.
Although Time Warner Cable is in the midst of being acquired by Charter (NASDAQ: CHTR), which is just waiting on regulatory approval of the deal. It's expected that with this deal, Charter will actually increase its business services and wholesale power because it will have a larger footprint of Ethernet, fiber and HFC capabilities.
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