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Cable Technology Feature Article

October 01, 2012

U.S. Cable System Operators Chasing a Waning and Aggressive Market with Low Profit Margins

By Shankar Pandiath, TMCnet Contributor

Although it's expected that in the current financial year, U.S. Cable TV Multiple System Operators (MSO) will generate $7 billion worth in annual revenue by rendering upbeat telecommunications services, they are actually pursuing a weakening telecom business, according to a new market research study from The Insight Research Corporation.

The telecom sector is witnessing brutal competition from the collective reputed telecom operators so as to shield their current status. Subsequently, they have devised stringent marketing and sales strategies to stay ahead the competition.

While cable operators will gain a significant market share, they’ll continue to be undersized business players, with low profit margins and reduced cash flow.

The Insight Research survey reveals that although the Cable TV Enterprise Services may feel confident about their progress about their service offerings for the residential sector, it’s their small steps in the telecom industry where they must strive hard to remain competitive.

Cable TV operators must face stringent challenges to gain a modest share of revenue and hold in the telecommunication industry.

Founded in 1990, The Insight Research Corporation, based in New Jersey, renders supreme market research reports across industries and verticals. Since its inception, the firm has continually evolved to offer detailed and in-depth quality reports that fit impeccably with unique business environments and objectives.   Numerous businesses have gained an edge over their competitors by purchasing a subscription program from Insight Corporation.

The company deploys latest marketing assessment tools and data analyzers to evaluate the information for providing only accurate reports, critical for the progress of any business.

Fran Caulfield, research director of Insight Research, says their market analysis divulges that despite the steep situation for the Cable TV Operators, they will still move forward. They will certainly offer quality services, and improved customer service at reduced rates to the end-consumer for creating a strong foothold in the telecommunication industry.

Cable TV Enterprise Services, 2012-2017” segments revenue estimates for telco and cable operators providing basic voice, data and video services offered to the small, medium and large enterprise business segments.

In the U.S. telecom sector, the business services segment closely follows the top-notch wireless services division. Over recent years, the Cable TV Operators have gained some momentum, but to push their single-digit market share to optimum levels, they must be smart to devise stringent business plans to combat challenges posed by the big telecom brands.     

The estimated revenue in billions generated by the Cable TV Enterprise Services will come from rendering data, video and voice services to small, mid-sized and large conglomerates. This report is critical for market and business analysts and for Cable TV operators seeking concrete methodologies for penetrating the telecommunications sector. 

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Edited by Braden Becker

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