Study Shows MSOs Are Beating Telecoms When It Comes to Broadband
For the first time ever, during the second quarter of 2014, cable multi-service operators (MSOs) outperformed their telecom counterparts in terms of onboarding new broadband customers. According to recent research of the 17 leading cable and telecom companies by the Leichtman Research Group, that trend continued during the third quarter.
MSOs consolidated their positions last quarter, the research points out. Of the current 85.6 million high-speed broadband customers the companies have, 60 percent of them fall under the umbrella of the MSO.
Thanks to the evolution of technology and the proliferation of high-speed video services, some can argue that what has traditionally been the primary cash cow for cable providers is proverbially slipping through their fingers. And that could be a cause for panic.
But the numbers speak to the contrary: Since MSOs are now taking control of a majority of broadband services, their futures are perhaps brighter than ever. After all, the need for broadband services continues to increase, and it doesn’t appear as though those needs are going to disappear anytime soon.
As such, MSOs are well positioned to remain in sturdy financial positions for the foreseeable future. After all, they are controlling more and more of the pipes that send data and content in and out of customers’ homes and offices.
And that infrastructure is perhaps the most important there is in terms of entertainment and information. What good is even the greatest piece of content in the world if it’s unable to be consumed by customers?
At the end of the day, as some speculate that what had been cable’s bread and butter for so many years is slipping away, further analysis proves that the industry’s best days may very well lie ahead.