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Study: MSOs to gain in biz sector

Thu, 06/13/2002 - 8:00pm
Karen Brown

While it hasn't been cable's strong point historically, research firm The Yankee Group thinks recent technology tweaks have positioned MSOs to make healthy gains in the business-services market.

With cable operators showing increasing interest in extending their residential coaxial networks to reach business customers, start-up companies including Narad Networks Inc. and Advent Networks Inc., as well as longtime vendor Arris, have begun offering products that deliver large-bandwidth dedicated access.

While there are several flavors, these technologies all bank on existing networks, cutting the need for expensive line extensions to business customers, according to the report.

MSOs are particularly interested in reaching small and midsized business customers that have been somewhat overlooked by major incumbent Bell operators for communications services. That will likely fuel further development of products that can deliver hefty multiservice bandwidth, the report concluded.

"Considering the MSOs' increasing need for cost-effective large-bandwidth solutions, it is clear that this will be an area of growth for the broadband sector," analyst Lindsay Schroth said.

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