Give yourselves a pat on the back for a job well done, cable television operators. A recent report from TNS shows the cable television industry, which for a long time running has been dominating in the small-business telecommunication arena, also experienced tremendous growth at the large-enterprise level over the past two years.
As TNS’s quarterly commercial market survey indicates, spending on wired voice and data from cable providers rose from 12.2 percent to 16.9 percent over the past 24 months. These figures demonstrate a strong growth rate of over 38 percent during this time, and it shows no signs of slowing down any time soon.
This growth is welcome news for the cable television industry when considering the amount of potential revenue and exciting opportunities that exist at the enterprise business level. It’s a strong indicator that the cable television industry is alive and well and poised for even more expansion over the next decade.
So, what’s causing the high level of interest in cable television services amongst large enterprises?
According to the report, it’s driven by a heavy reliance on Web services and a need for more bandwidth. In the past, businesses invested in fast Internet and voice service to gain a competitive advantage. Now, fast and reliable Internet and voice have become integral functions for organizations. Simply put, if you don’t have access to these staples, you’ll risk falling behind competitors who are leveraging them on a daily basis.
Also fueling the demand for premium data is the rapidly growing Internet of Things (IoT), in which just about every enterprise is investing. Businesses will soon come to discover that connected endpoints depend heavily on one thing: the ability to send and receive large volumes of data at tremendous speeds. This is true for customer-facing IoT solutions and internal IoT solutions.
The news should serve as a major confidence boost for 4Q15 and the subsequent start of a new year. Sales professionals in the cable industry should ride this wave of momentum forward and use it to capitalize on enterprises looking to expand their use of wired cable and voice in 2016.
As TNS mentions, one way to capitalize on this market is to consider migrating single-product customers into bundled packages that combine voice and data. As the report explains, over the past two years, cable companies have increased the number of customers obtaining voice and data through a single provider from 38.6 percent to 54.1 percent—an increase of over 40 percent. Bundling is a great way to not only retain customers, but attract customers who are paying too much for voice and data services from competitors.