Cable MSOs Move in on Ethernet Sales, Heavy Reading Finds

Recent Ethernet market entrants, cable operators have a firm grasp with more than 25 percent of current market sales, says Heavy Reading Cable Industry Insider

Aug 9, 2013

NEW YORK, Aug. 9, 2013 /PRNewswire/ -- Cable MSOs are pushing into the Ethernet services market, quickly snatching up 25 percent of market sales, affecting telecom operators and carrier Ethernet suppliers alike, according to the latest report from Heavy Reading Cable Industry Insider (, a subscription research service from Heavy Reading (

Cable Operators & Ethernet: Serious Market Share reviews and updates how cable companies and their subsidiaries are approaching the U.S. Ethernet services business today, comparing their go-to-market and technology strategies. It profiles and analyzes seven of the most significant U.S.-based cable companies (including one specialized data subsidiary) in the data market in terms of how they address Ethernet, including service offerings, expansion plans, strategies, technology suppliers and choices, target markets and resulting customers and businesses.

For a list of companies covered in this report,

"All large U.S. multiple system operators (MSOs) have moved into the business services market," notes Steve Koppman, research analyst with Heavy Reading Cable Industry Insider and author of the report. "Ethernet is a growing portion of that portfolio, with more than 25 percent of the U.S. Ethernet services market going to cable operators by the end of 2012."

The emergence of cable operators as a major competitive threat in Ethernet services has a significant impact, Koppman says. "This affects not only on the telecom operators that must contend with more local competition, but also on carrier Ethernet technology suppliers with a greater opportunity for market expansion," he continues. "Expanded Ethernet service over HFC networks has, meanwhile, facilitated small business purchases while longer-standing customers over fiber are mostly in the mid-market."

Key findings of Cable Operators & Ethernet: Serious Market Share include the following:

  • U.S. MSOs have more than a quarter of the Ethernet market (and a much greater share in the metro) – a share that will approach one third as Comcast ramps up after a late start in 2011.
  • Wholesale Ethernet is substantially outgrowing retail, expanding as a share of MSO Ethernet from 10 to more than 20 percent including dramatically growing "Type Two" service as well as cell backhaul.
  • MSOs' historically simple "pipe" approach to Ethernet is evolving into a more application-based, vertically-oriented posture, giving more weight to issues of service management.
  • MSOs will move "up-market," individually and/or collectively, toward long-haul national customers, while continuing to move "down-market," leveraging their HFC networks, D3 and channel bonding capabilities.

Cable Operators & Ethernet: Serious Market Share is available as part of an annual subscription (six issues) to Heavy Reading Cable Industry Insider, priced at $1,595. Individual reports are available for $900.

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David Williams
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Heavy Reading

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About Heavy Reading (
Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry. As a division of UBM Tech (, Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

SOURCE Heavy Reading